Investor Capitulation Of Avis Budget Group Could Be A Buying Opportunity
Alpha Gen Capital
Alpha Gen Capital
Avis Budget Group Is Speeding Much Higher
The Growth Investor
The Growth Investor
Mon, Jun. 20, 11:46 AM| Mon, Jun. 20, 11:46 AM | 1 Comment
Tue, Jun. 7, 11:15 AM
- YoYo is an upcoming on-demand car subscription service that charges customers on a pay-per-mile basis. The service is expected to operate on a concierge model with extreme flexibility.
- Today, the company announced the hiring of Hari Iyer as its CEO. Iyer is the COO of EV startup Elio Motors (OTCQX:ELIO) and will remain on that company's board.
- The YoYo model differs from Uber (Private:UBER) and Lyft (Private:LYFT), although all three companies are banking on predictions for exponential growth in both ridesharing and ridehailing.
- Avis Budget (CAR +2.3%) and Hertz Global (HTZ +2%) are adapting to the evolving business environment with their own self-service rental options and are researching self-driving concepts.
Mon, May 23, 12:50 PM
- Avis Budget (CAR +0.4%) announces that it strategically pushed out the maturity date for $825M of corporate loan borrowings to 2022 from 2019.
- The new rate for the extended balance is LIBOR +2.50% (floor of 0.75% LIBOR).
- CFO David Wyshner says the company felt it was prudent to make the move sooner rather than later.
Tue, May 17, 9:58 AM
- Hertz Global (HTZ +11.2%) races higher in early trading after the company disclosed that CEO John Tague was a buyer of 66K shares in recent days.
- Tague picked up shares on May 13 and May 16 in the $7.80 to $7.85 range.
- The insider buying at Hertz is also doing wonders for Avis Budget (NASDAQ:CAR) which is up 5.76% in a flurry.
- Hertz SEC filings
Wed, May 11, 12:19 PM
- There's chatter of Marcato Capital Management having taken a stake in Realogy (RLGY +1.4%), while lightening up on positions in LPL Financial (LPLA +1.4%) and Avis Budget (CAR +1.4%) to help fund the new holding.
- Previously: Activist investor Marcato Capital discloses 6.3% stake in LPL Financial (Sept. 23, 2015)
- Previously: Avis Budget on the move after Marcato Capital boosts stake (Aug. 17, 2015)
Wed, May 4, 9:10 AM
- Avis Budget (NASDAQ:CAR) boosts revenue guidance for the full year. The company now sees sales of $8.75B to $8.9B to easily top the consensus estimate of $8.68B.
- Shares of Avis are up 5.35% premarket as investors take the view that the strategic spending which contributed to a Q1 EPS miss may pay off over time.
- Previously: Avis Budget misses by $0.21, revenue in-line (May 3)
Tue, May 3, 4:35 PM
Tue, May 3, 10:17 AM
- The broad automobile-related sector is slumping after the Detroit Three all post U.S. sales reports below expectations for April.
- Hertz Global (HTZ -7.1%) and Avis Budget (CAR -5.6%) in particular are being hit hard with Avis due to report earnings after the bell and some read-through on daily rentals from GM influencing trading.
- Retailers AutoNation (AN -2.5%), Asbury Automotive (ABG -3.3%), CarMax (KMX -1.9%), Lithia Motors (LAD -1.6%), and Group 1 Automotive (GPI -3.7%) are also lower.
Mon, May 2, 5:35 PM
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Thu, Apr. 21, 9:34 AM
- The bear case for car rental stocks is well-represented in Bloomberg chart that breaks down market share for business customers.
- Uber (NYSEARCA:UBR) racked up 43% of ground transportation transactions during Q1, accounting to data from Certify. Hertz and Avis have lost market share dramatically over the last two years
- Investors aren't missing the strengthening trend, Hertz Global (NYSE:HTZ) is down 38% YTD and Avis Budget Group (NASDAQ:CAR) has peeled off 36%.
- Now read Who'd A Thunk It? Uber Is Way More Efficient Than Traditional Taxis?
Tue, Apr. 12, 10:13 AM
- Hertz Global (HTZ -2.8%) and Avis Budget Group (CAR -3%) slump for a second day following a painful earnings warning from Hertz.
- Investors are getting out ahead of the investment firm price target changes which are sure to come off the noted pricing weakness in the car rental sector. On that note, Credit Suisse is already in with a downgrade on Hertz to Neutral and PT cut to $12, as well as a PT reduction on Avis to $34.
- Though the attention is on pricing in the U.S. market, Seeking Alpha contributor Chris Ridder has been asking what the impact of Hertz selling older cars is on cash flow. That question becomes more relevant as the glut of used cars extends.
- Now read Hertz: Downhill And Roundabout
Mon, Apr. 11, 8:26 AM
- Shares of Avis Budget (NASDAQ:CAR) are down sharply in early trading after Hertz issues a warning on pricing in the U.S. market.
- Hertz lowered full-year U.S. car rental revenue guidance to flat to -1.5% growth, compared to a prior outlook for a 1.5% to 2.5% gain. Pricing impacted the reset more than volume.
- CAR -4.98% premarket to $23.47.
- Now read Hertz Global slumps after warning on U.S. pricing
Fri, Apr. 8, 1:55 PM
- BMW (OTCPK:BAMXY) is firmly in the car-sharing race now with a test program in Seattle running at full throttle.
- The German automaker has 370 BMW and Mini vehicles included in the ReachNow service.
- ReachNow cars can be rented for as low as $0.41 per minute while driving and $0.30 per minute while the vehicle is parked. Prices are capped at $80 per 12 hours or $110 for a full 24 hours.
- The company plans to introduce ReachNow in an additional ten U.S. cities.
- Related stocks: HTZ, CAR, UBER.
Fri, Mar. 4, 6:14 PM
- After factoring cash-settled equity swaps, SRS Investment now has a 12.9% stake in Avis (NASDAQ:CAR), up from a prior 9.5%. (13D filing)
- The disclosure comes less than two months after Avis announced (in tandem with a $300M buyback hike) SRS analyst Brian Choi is joining the board, and that SRS is "entitled to recommend an independent director not affiliated with SRS" also join.
Fri, Feb. 26, 5:41 PM
Thu, Feb. 25, 11:16 AM
- Avis Budget Group (CAR +4.9%) is clawing back from yesterday's plunge tied to a warning from the company on pricing. Analysts are weighing on Avis with their post-earnings takes.
- Credit Suisse (Outperform, $38 PT): "While weaker commercial volume trends have been the "norm" for the past few quarters, the outlook seems a bit weak even taking that into account."
- Deutsche Bank (Buy, $48 PT): "There is little visibility into how the demand picture will play out over the seasonally significant summer months."
- Barclays (Equal-weight, $35): "With soft margins, unclear what drives earnings growth. Share buybacks are likely to support EPS growth. Yet with investment expense to recur over the next few years, the case for margin expansion is limited."
- Previously: Avis Budget and Hertz Global down sharply on pricing concerns (Feb. 24 2016)
Avis Budget Group, Inc. provides a complete range of vehicle rental and car sharing services through various brands such as Avis, Budget and Zipcar. The company operates its business through three segments: North America, International and Truck Rental. The North America segment provides car... More
Industry: Rental & Leasing Services
Country: United States
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