Avis Budget Intrinsic Stock Value – Rhumbline Advisers Decreases Stake in Avis Budget Group by 3.1% in 2nd Quarter

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Avis Budget ($NASDAQ:CAR) Group, Inc. is a leading global provider of vehicle rental services. It offers a wide range of car rental options to consumers, including traditional car rentals, premium and luxury rentals, and commercial fleet management services. As a publicly-traded company, AVIS BUDGET is subject to filings with the Securities and Exchange Commission (SEC) that disclose the holdings and changes in ownership of institutional investors. In the second quarter of this year, Rhumbline Advisers, a well-known institutional investor, reported a 3.1% decrease in its stake in AVIS BUDGET through its 13F filing. This means that Rhumbline now holds a smaller percentage of the company compared to the previous quarter. While the reason for this decrease is not specified in the filing, it could indicate a change in Rhumbline’s investment strategy or outlook on AVIS BUDGET as a whole. Other institutional investors also made changes to their holdings in AVIS BUDGET during this period. These changes in ownership could potentially influence the stock price of AVIS BUDGET in the coming quarters. While this 3.1% decrease may seem relatively small, it is worth paying attention to as it reflects the actions of a major institutional investor.

However, it is important to note that 13F filings only provide a snapshot of an investor’s holdings and do not necessarily indicate a complete divestment from a company. In conclusion, Rhumbline Advisers’ recent decrease in its stake in AVIS BUDGET through its 13F filing may signal a shift in the company’s investment strategy. However, it is important to keep track of future filings and developments to gain a more comprehensive understanding of the company’s overall performance and investor sentiment.

Analysis – Avis Budget Intrinsic Stock Value

As a team at GoodWhale, we recently conducted an in-depth analysis of AVIS BUDGET‘s financial well-being. Our findings have allowed us to determine the intrinsic value of AVIS BUDGET’s shares, using our proprietary Valuation Line method. Based on our calculations, we have determined that the intrinsic value of AVIS BUDGET stock is approximately $236.9. Currently, AVIS BUDGET’s stock is trading at a significantly lower price of $79.13. This means that the stock is undervalued by approximately 66.6%. Our analysis has shown that this undervaluation is due to a combination of factors, including market fluctuations and investor sentiment. It is important to note that our Valuation Line takes into consideration various financial metrics such as cash flow, earnings, and growth rates. This provides a more accurate representation of a company’s value compared to just looking at its current stock price. Based on our analysis, we believe that AVIS BUDGET’s stock presents a strong investment opportunity for long-term investors. With a significant undervaluation and a stable track record, there is potential for solid returns in the future. However, as with any investment decision, we advise investors to carefully research and consider all factors before making any financial decision. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Avis Budget. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Avis Budget. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Avis Budget. More…

Key Ratios Snapshot

Some of the financial key ratios for Avis Budget are shown below. 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

Investing analysis in Avis Budget Group, Inc. shows that Rhumbline Advisers recently reduced its stake in the company by 3.1% during the 2nd quarter. This move suggests that Rhumbline Advisers may have less confidence in the company’s performance and potential.

However, the stock price for Avis Budget Group, Inc. still saw an increase on the same day, indicating that other investors may still have a positive outlook on the company. This could be due to factors such as strong financials or promising future developments. Overall, it appears that opinions on Avis Budget Group, Inc. are mixed among investors.