Avis Budget Group Inc – (CAR, +1, June 15th)
Bernardo Hees (Executive Chairman since 2020) has now spent $15 million purchasing shares over the past month. We upgraded the stock to +N on May 23rd after his first $5 million purchase at $189. He subsequently made two additional $5 million purchases, on May 24th at $173 and most recently on June 10th at $168.69. This $15 million spending spree is a reversal from a very timely sale of 143,389 shares in November 2021 at an average price of $273, generating $39 million.
He has now reinvested almost half of those gross proceeds, an unusual amount given he likely will owe substantial taxes after that sale. Hees’ prior purchases in this stock, in February 2020 at $35 and in May 2021 at $79, were both very timely. Hees is the former CEO of Kraft Heinz as well as Burger King Worldwide and a partner at 3G Capital.
While he has been the only recent buyer, we are upgrading the shares further, from +N to +1.