What happened: Avis Budget Group’s stock (CAR) tanked as much as 19% on Wednesday morning before paring losses.
What’s behind the move: The car rental company reported a larger-than-expected profit loss in the first quarter. Avis reported a loss of $8.01 per share, versus consensus estimates for a loss of $6.87, according to Bloomberg data. Revenue of $2.53 billion came in higher than the $2.45 billion expected by Wall Street.
What else you need to know: Avis has been one of the most volatile stocks in recent weeks following an epic short-squeeze rally that abruptly reversed last week.
The stock had surged to a high of $847 before plunging.
The rally began after Avis’s largest shareholder, Pentwater Capital Management, disclosed last month that it had built a significant position in the company. That same hedge fund exercised call options to sell shares in multiple transactions last week, some as high as $620.50, according to regulatory filings.
Pentwater Capital Management remains the second-largest holder of Avis stock, with a 17.5% stake, according to Bloomberg data.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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