Florida Retirement System Reduces Stake in Avis Budget Group as Insiders Sell Shares
May 17, 2023
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Avis Budget ($NASDAQ:CAR) Group is a global car rental, truck rental, and car sharing company headquartered in Parsippany, New Jersey. Recently, the Florida Retirement System has reduced its stake in the company as insiders have sold off a significant portion of their shares. This has caused some people to question the company’s financial stability and the security of their investments. Despite the recent insider sell-offs, Avis Budget Group is still a strong and established player in the car rental industry. They are one of the largest car rental companies in the world and offer a wide variety of rental options for their customers. They also offer car sharing services and are expanding their reach into other sectors like ride-hailing and autonomous vehicle technology.
The sell-offs by insiders may have raised some eyebrows, but Avis Budget Group is still an established business with a loyal customer base. The company is well-positioned to take advantage of the growing demand for car rentals and other transportation services. Their wide variety of cars, trucks, and vans make them a top choice for travelers, and they continue to innovate and expand their offerings in order to stay ahead of the competition. For these reasons, Avis Budget Group remains an attractive investment option for those looking to diversify their portfolios.
Stock Price
On Monday, Avis Budget Group (AVIS BUDGET) saw its stock open at $159.3 and close at $162.9, up by 2.5% from the prior closing price of $158.9. The Florida Retirement System is a pension fund that manages and invests assets of over one million people. Despite the reduction in stake from the Florida Retirement System and the sale of shares from insiders, AVIS BUDGET’s stock price still managed to stay up on Monday. This could be seen as a sign of confidence in the company’s future prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Avis Budget. More…
| Total Revenues | Net Income | Net Margin |
| 12.84k | 2.55k | 20.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Avis Budget. More…
| Operations | Investing | Financing |
| 4.38k | -4.81k | 451 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Avis Budget. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 25.93k | 26.63k | -11.17 |
Key Ratios Snapshot
Some of the financial key ratios for Avis Budget are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.2% | 104.4% | 28.1% |
| FCF Margin | ROE | ROA |
| -28.0% | -393.2% | 8.7% |
Analysis
As GoodWhale, we conducted an analysis of Avis Budget‘s financials to determine how the company is doing financially. We found that Avis Budget has an intermediate health score of 5/10, considering its cashflows and debt, which suggests that it is likely to sustain future operations in times of crisis. We also classified Avis Budget as a ‘gorilla’, meaning it has achieved stable and high revenue or earnings growth due to its strong competitive advantage. We believe that this type of company would be attractive to investors who are looking for growth and profitability, but not necessarily for dividend income. Avis Budget is strong in asset, growth and profitability, but weak in dividend. Therefore, investors looking for growth and profitable investment opportunities may be interested in investing in Avis Budget. More…
Peers
Its competitors include Hertz Global Holdings Inc, Localiza Rent A Car SA, and HyreCar Inc. Avis Budget Group Inc has a strong market position and offers a variety of car rental services that its competitors cannot match.
– Hertz Global Holdings Inc ($NASDAQ:HTZ)
Hertz Global Holdings Inc is a holding company that operates through its subsidiaries. The company’s principal business is car rental. It has a market cap of 6.63B as of 2022 and a Return on Equity of 70.21%. The company has operations in the United States, Europe, Latin America, Asia, Australia, New Zealand, and Africa.
– Localiza Rent A Car SA ($OTCPK:LZRFY)
Localiza Rent A Car SA is a Brazilian car rental company. The company has a market cap of 12.8B as of 2022 and a return on equity of 32.33%. Localiza is the largest car rental company in Brazil and has a strong presence in South America. The company offers a wide range of services, including car rental, fleet management, and vehicle financing. Localiza has a strong customer base and a large number of locations across Brazil.
– HyreCar Inc ($NASDAQ:HYRE)
HyreCar Inc. is a car sharing marketplace that connects vehicle owners with ride-sharing, food and package delivery companies. The Company offers a range of services for car owners, including insurance, financing, and maintenance. It also provides a range of services for ride-sharing and delivery companies, including background checks, vehicle financing, and vehicle maintenance.
Summary
This signals a potential change in sentiment towards the stock, as the SBAFRS is a notable institutional investor. Investors should carefully analyze the reasons behind the reduction and any other recent changes to the company’s fundamentals before making any informed decisions. A thorough analysis of Avis Budget Group’s financial strength and performance compared to that of its peers may help uncover any hidden factors at play.
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