Avis Budget Group, Inc. (NASDAQ: CAR) revealed that its board of directors has approved an increase of its share repurchase program by about $1 billion, thereby taking total buyback capacity to about $1.16 billion.
The company engages in the provision of vehicle sharing and rental services. CAR stock surged 21.5% on Wednesday to close at $281.49.
The buyback program will depend on factors including market conditions, the company’s share price, and legal requirements, among others. Repurchases will be made from time-to-time using methods not limited to open market or private transactions.
With travel demand picking up pace due to the gradual removal of COVID-19 restrictions and an increase in confidence among customers, CAR stock seems well-positioned to enhance shareholder value.
Avis Budget Earnings
The company is expected to report earnings of $3 per share for Q1 2022. Avis Budget’s earnings beat estimates in all reported quarters of 2020 and 2021, and given its impressive earnings history, it is expected to beat estimates again in the current quarter.
Overall, the stock has a Moderate Sell consensus rating based on four Holds and two Sells.
Insider Trading Activity
TipRanks’ Insider Trading Activity tool shows that confidence in Avis Budget is currently Negative based on informative transactions by four insiders over the past three months. Corporate Insiders have sold shares worth $1.1 million over this period.
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