Kayak reported average daily rental rates are up 31% year-over-year
The shares of Avis Budget Group Inc. (NASDAQ:CAR) are slipping today, last seen down 2.8% to trade at $217.56. The car rental name is walking back earlier gains, after Kayak reported its average daily rental rates are up 31% year-over-year at $81 per day.
The last time we checked on Avis Budget stock, it was flashing a historically bullish signal. The equity has since slipped further bellow the 40-day moving average, though the $200 level seems to be acting as a floor. And while CAR remains far from its Nov. 2, all-time high of $545.11, it has added 492.7% over the last 12 months.
Analysts lean bearish towards the equity, with six of the seven in coverage carrying a tepid "hold" or worse. Meanwhile, short interest is down 39% in the last two reporting periods, but CAR has failed to experience a jump on the charts, pointing to potential technical weakness. The 8.25 million shares sold still short make up 14.9% of CAR's available float, though.
Now could be a good time to weigh in on the stock's next move with options. Avis Budget stock's Schaeffer's Volatility Index (SVI) of 71% stands higher than 14% of readings from the past year. This means options traders are pricing in low volatility expectations at the moment.
It's also worth noting that the security's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 88 out of 100. In other words, CAR has exceeded option traders' volatility expectations during the last 12 months.