Avis Budget Chairman Bernardo Hees Stocks Up On Action
The group’s shares have held up better in 2022 than the broader market, and executive chairman Bernardo Hees recently bought more shares of the car rental company.
The Avis Budget share (ticker: CAR) fell 4% this year, compared to
S&P 500 Index
13% decrease. Stock trading was volatile, with jumps and slides following analyst upgrades and downgrades. Earnings were strong, but some investors believe the strength is unsustainable.
Morgan Stanley analyst Adam Jonas, who rates Avis’ budget underweight, wrote earlier this month: “We struggle to justify buying the stock at current levels.”
Not Hees, however. He paid $9.9 million May 18 and 24 for a total of 54,334 Avis Budget shares, an average price of $189.90 each, according to Securities and Exchange Commission filings. Hees, former managing director of
(KHC), made the transaction through a trust that now owns 450,476 shares. Hees owns another 1,525 through a deferred compensation plan.
Avis Budget did not respond to a request that Hees be made available for comment.
Hees last bought Avis Budget shares in May 2021, when he paid $5 million for 63,000 sharesat an average price of $79.39.
Between Hees’ purchases, only one other insider bought shares. Veresh Sita, Chief Digital and Innovation Officer, paid $150,000 on June 10, 2021, for 1,685 Avis Budget shares. Its average cost: $89 per share.
Inside Scoop is a regular Barron column that covers the stock trading of corporate executives and board members – the so-called insiders – as well as major shareholders, politicians and other high profile figures. Because of their insider status, these investors are required to disclose stock trades to the Securities and Exchange Commission or other regulatory groups.