The stock of Avis Budget Group, Inc. (NASDAQ:CAR) is now priced at $31.63 and the shares are 0.79 points up or 2.56% higher compared to its previous closing price of $30.84. The stock had 1.68 million contracts set over the past session. CAR shares’ daily volume is compared to its average trading volume at 5.747 million shares. However, it has a float of 68.42 million and although its performance was -1.06% over the week, it’s one to watch. Analysts have given the CAR stock a yearly average price target of $39 per share. It means the stock’s upside potential is 23.3% with the CAR share price recently placing at $30.37 to $31.9. However, some brokerage firms have priced the stock below the average, including one that has called $26.
The shorts are running away from the Avis Budget Group, Inc. stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the CAR shares have declined. Short interest in the stock represents just 20.76% of its float, but the volume has dropped by -1263473. The volume of shorted shares dropped to 14.206 million from 15.47 million shares over the last two weeks. The average intraday trading volume has been 2.78 million shares, which means that days to cover moved to roughly 5.10979.
In the last trading session, Avis Budget Group, Inc. (NASDAQ:CAR) dropped by -$0.34 over the week and gained $2.74 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $52.98. The stock recorded its established 52-week high on 02/20/20.
Since 03/18/20, the stock has traded to a low of $6.35 at 398.11%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 2.47. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Avis Budget Group, Inc.’s two-week RSI is 62.15. This suggests that the stock is neutral at the moment and that CAR shares’ price movement remains stable. The stochastic readings are equally revealing at 70.54% meaning the CAR share price is currently in oversold territory.
The technical chart shows that the CAR stock will likely settle at between $32.23 and $32.83 per share. However, if the stock dips below $30.7, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $29.77.
Currently, the stock is trading in the green of MACD, with a reading of 0.68. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Morgan Stanley raised their recommendation for CAR from Equal-Weight to Overweight in July 02 review while maintain their target price of $37. Morgan Stanley analysts upgraded their recommendation of the stock from Underweight to Equal-Weight while keeping its target price at $15 in a flash note released to investors on May 21. JP Morgan seeing the stock struggling downgraded it from Overweight to Neutral on April 23 placing it at $13.
The average rating for the CAR equity is 2.29 and is currently gathering a bullish momentum. Of 7 analysts tracking Avis Budget Group, Inc. polled by Reuters, 4 rated CAR as a hold. The remaining 3 analysts were split evenly. However, the split wasn’t equal as a majority (3) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the CAR stock price is 24.26X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands below the group’s average of 41.6. Avis Budget Group, Inc. has its P/E ratio at 0, which means that the stock is currently trading at a discount relative to the 1.7 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Avis Budget Group, Inc. (NASDAQ:CAR) will increase by about 85.53%, which will see them reach $1410 million. The company’s full-year revenues are, however, expected to diminish by about -42.75%, down from $9170 million to $5250 million. CAR’s expected adjusted earnings should drop almost -97.64% to end up at $0.07 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -309.24% to record -$7.7/share.