- The net proceeds to be received from the sale of common stock offered by the company will be used for general corporate purposes, among other things.
- Avis operates as a vehicle rental operator in North America, Europe, Australasia and other regions, with an average rental fleet of approximately 684,000 vehicles in 2025.
- Morgan Stanley earlier in the month lowered the firm's price target on Avis Budget to $97 from $142 and kept an ‘Equal Weight’ rating on the shares.
Avis Budget Group (CAR) shares fell as much as 4% in Friday’s extended hours of trading after the vehicle sharing and rental services provider announced an automatic offering of its common shares.
The company is selling its common shares via automatic offering with par value $0.01 per share.
The company said that net proceeds from the offering would be used for general corporate purposes, including repayment of indebtedness, acquisitions, additions to working capital, repurchases of common stock, dividends, capital expenditures and investments in the company’s subsidiaries.
Net proceeds may be temporarily invested prior to use, the company added.
Avis Budget said that to facilitate the offering of the common stock, certain persons participating in the offering may engage in transactions that stabilize, maintain or otherwise affect the price of its common stock.
About Avis
Avis operates three globally recognized brands in mobility solutions named as Avis, Budget and Zipcar. It operates as a vehicle rental operator in North America, Europe, Australasia and other regions, with an average rental fleet of approximately 684,000 vehicles in 2025.
Recent Analyst Actions
Morgan Stanley earlier in the month lowered the firm's price target on Avis Budget to $97 from $142 and kept an ‘Equal Weight’ rating on the shares. The firm updated its rental car estimates post Q4, lowering its targets for Avis after what it called "much weaker than expected results and guidance."
Deutsche Bank also lowered the firm's price target on Avis Budget to $128 from $148 and kept a ‘Buy’ rating on the shares.
Retail Reaction
Retail sentiment around CAR trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume.
Shares of CAR have risen 15% so far this year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.