Avis Budget Group, Inc. (NASDAQ: CAR) is engaged as a global rental car and mobility services provider, which operates over 10,000 locations across 180 countries. Shares of the car rental company have skyrocketed 120% during early trading on Tuesday, November 2, 2021. Over the past three months, Avis Budget Group has seen average daily volume of 1.98 million shares. However, volume of 12.62 million shares or dollar volume of $6.15 billion, has already exchanged hands through early trading on Tuesday.
Shares of Avis Budget Group are surging after the company reported record third quarter 2021 financial results. For the period ending September 30, 2021, Avis Budget Group reported revenues of $3 billion, which represents growth of 96% compared to Q3 2020. Net income came in at a new record of $674 million and adjusted EBITDA was $1.06 billion. Avis Budget remains very well capitalized with total liquidity of $1.3 billion and an additional $2.7 billion from fleet funding capacities.
During the third quarter, the rental car company disclosed that it had repurchased 11.6 million shares of common stock at an average cost of $86 per share. The third quarter buybacks reduced the outstanding share count by 16% compared to the end of the second quarter 2021.
Going into the financial results release, Avis Budget Group maintained a lofty short seller community with a short float of over 20%. The stronger-than-anticipated third quarter results were likely a covering moment for short sellers, likely adding to today’s gains.
“Our third quarter results are a testament to our team’s on-going focus around cost discipline and ability to execute operationally,” said Joe Ferraro, Avis Budget Group Chief Executive Officer. “We are seeing the benefits of initiatives we began during the early days of the pandemic and look to build on this positive momentum as the travel environment continues to normalize.”
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