Avis

CAR

Market cap $14.5B

Traders are zeroing in on heavily shorted names after the latest FINRA data showed double‑digit jumps in bearish positioning across several mid‑ and large‑cap stocks.

Shares of Avis Budget Group have been on a tear lately.

Avis Budget Group Inc (NASDAQ: CAR) shares are tumbling Friday as traders reassess an overheated short squeeze run that pushed the stock into record territory even while the fundamental backdrop stays messy.

Avis Budget's stock price has gone through a short squeeze recently, making it one of the top gainers on Wall Street. It has jumped in the last five consecutive days and moved to its highest point since April 2022.

Avis shares traded around $250 on Tuesday, up roughly 19% on the day and 160% over the past month, with volume several times its daily average as traders pile into the move.

Avis stock's recent rally has inspired bets that it will fall just as quickly as it gained ground. A handful of analysts and traders, however, argue these recent bets that CAR shares will lose ground are the very reason they're likely to continue rising.

Avis Budget Group (NASDAQ:CAR) stock is up 10% today, moving from $212.60 to $235 in midday trading on Tuesday.

Avis is trading around $212.09, down 0.24%, as the stock tests resistance near $213.00. The level sits just below its 52-week high of $214.84, setting up a potential breakout if buyers can push through with conviction.

Avis's stock could still rally a lot more because of a technical “short squeeze” triggered in late March, according to Deutsche Bank.

This was aided greatly by a positive analyst note. The pundit who wrote it upgraded his recommendation on the car rental giant.