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Tag: CAR stock

  • Special Dividend News Is Boosting Avis Budget (CAR) Stock

    Special Dividend News Is Boosting Avis Budget (CAR) Stock

    Avis Budget Group, Inc. (NASDAQ: CAR) shares experienced a notable surge of 6.55%, reaching $196.01 in the current trading session. The traded volume of Avis Budget stock, according to the latest data on the US charts, amounted to 423,000 shares, a figure juxtaposed against the average daily volume of 468,000 shares. The upswing in CAR stock was precipitated by the divulgence of a forthcoming dividend distribution.

    Today, Avis Budget (CAR) disclosed a proclamation by its Board of Directors regarding a distinctive cash dividend of $10.00 per share of common stock. This particular cash dividend is slated for disbursement on December 21, 2023, targeting stockholders recorded as such by the close of business on December 15, 2023.

    Furthermore, Avis Budget has successfully acquired around 1.3 million shares of its common stock during the current quarter of 2023, amounting to an overall purchase cost of approximately $240 million. The company still retains the capacity to repurchase shares, with approximately $820 million earmarked for this purpose under its existing share repurchase program.

    CAR anticipates the ongoing retirement of shares throughout the remainder of 2023 and beyond, contingent upon prevailing market conditions and other relevant factors. Recent financial activities by Avis Budget’s wholly-owned subsidiaries, Avis Budget Car Rental, LLC, and Avis Budget Finance, Inc., involve the pricing of a private offering totaling $500 million in aggregate principal amount of 8.00% senior notes, due to mature on February 15, 2031.

    The closing of this notes offering was anticipated to transpire on November 22, 2023, contingent upon meeting customary closing conditions. The notes will be issued at an issue price of 99.341% and bear the guarantee of the Company and certain U.S. subsidiaries on a senior unsecured basis. The Company’s strategic allocation of the net proceeds from the notes offering encompasses the redemption of all outstanding 4.500% senior notes due in 2025 issued by Avis Budget Finance plc.

    Additionally, a portion of the funds will be utilized to repay a segment of its floating rate term loan C maturing in 2029, alongside covering associated fees and expenses. The residual funds are earmarked for general corporate purposes.

  • Avis Budget Group, Inc. (CAR) stock plunged -12.05% on Tuesday; here is why?

    Avis Budget Group, Inc. (CAR) stock declined -12.05% to $171.25 in the normal trading session on Tuesday after the company reported fourth-quarter and fiscal 2021 earnings. The stock closed at $194.71 at the end of Monday’s trading session. The stock volume traded in the last trading session was around 861.41K shares. The current market cap of the company is around 9.58 billion.

    CAR: Key Financials

    • Avis Budget Group, Inc. (CAR) revenue in Q4 2021 was $2.57 billion. It is a gain of more than 90% compared to the revenue of Q4 in 2020.
    • Fiscal year revenue was $9.3 billion, and it is an increase of more than 72% compared to the revenue in fiscal 2020.
    • The company’s net income in Q4 2021 was around $381 million. Its EBITDA was $683 million.
    • CAR net income in fiscal 2021 was around $1.3 billion with an EBITDA of $2.4 billion.
    • The company repurchased 2.6 million worth of common shares at an average price of $170 in the fourth quarter, bringing their total stock buybacks for 2021 to roughly 14.3 million common shares.
    • EPS is $7.08 per share.

    CAR has lost more than 12.5% in a single day

    CAR lost more than 12.5% in single-day trading. The company announced positive results, but its stock plunged despite the good numbers. CAR gained more than 274% in the trailing twelve months.

    CAR CEO’s remarks

    The robust performance continued in the fourth quarter, with all significant measures exceeding pre-pandemic levels in the Americas, said Avis Budget Group CEO, Joe Ferraro. Despite Omicron’s emergence, they offered the best year ever. This would not have been possible without our entire organization’s relentless effort, for which he is thankful to the team for that.

    Conclusion

    The stock is declining despite the incredible financial numbers. The reason is unclear at the moment. The liquidity position of the company is currently at around $757 million.