CAR Stock Slips After Hours As Hedge Fund Drops Shares Worth Millions

• Sale prices ranged from $250.61 to $438.74 per share, reflecting the stock’s recent volatility.
• The hedge fund’s partial exit comes as CAR trades well below its 52-week highs but remains elevated from earlier 2026 levels.
• Until April 21, CAR stock gained in all but one session in the month, driven by a reported short squeeze.

Hedge fund Pentwater Capital Management LP sold over 1.3 million shares of Avis Budget Group Inc. (CAR) last week, sending the stock down 7% after hours on Tuesday.

The sales were executed on April 22 and 23, according to a filing with the Securities and Exchange Commission. Sale prices ranged from $250.61 to $438.74 per share, reflecting the stock’s recent volatility. The filing lists dozens of individual trades, including ones involving as few as 145 shares and another involving 474,345 shares.

Pentwater and its CEO, Matthew Halbower — listed jointly as 10% owners — still control millions of shares indirectly after the sales. The hedge fund’s partial exit comes as CAR trades well below its 52-week highs but remains elevated from earlier 2026 levels. No other explanation for the sales was provided in the filing.

Short Squeeze Drives CAR To Its Highest Point

Until April 21, CAR stock gained in all but one session in the month, driven by a reported short squeeze. The rally pushed shares up nearly 400% to a record high.

Earlier this week, Barclays said the rally was driven by a supply-demand imbalance, with two investors controlling about 71% of the shares and total economic interest exceeding 100% due to swaps, while high short interest sparked a sharp squeeze.

What Triggered The Collapse?

Last week, Fugazi Research said the sharp sell-off followed the collapse of a fragile setup between two hedge funds, SRS Investment Management and Pentwater Capital, describing it as a “prisoners’ dilemma” that quickly unraveled.

It noted that the two hedge funds had built combined exposure exceeding 100% of the float, effectively squeezing supply and pushing the stock far beyond its fundamentals, calling it the most extreme short squeeze since GameStop.

The firm also flagged serious concerns about the business, citing billions in recent losses, heavy debt, and weak earnings relative to its interest obligations. It added that the company offers no dividends or meaningful buybacks, while its balance sheet remains under pressure.

How Did CAR Retail Traders React?

On Stocktwits, retail sentiment fell from ‘bearish’ to ‘extremely bearish’ territory over the past 24 hours, while message volume stayed at ‘extremely high’ levels.

CAR stock has risen 92% over the past 12 months. 

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