Car rental stock Avis Budget surged Tuesday after the company reported a stronger-than-expected third quarter that sparked massive trading volume.
The company reported $10.74 in per-share earnings for the third quarter, beating a Refinitiv consensus estimate by more than $4. Revenue also topped expectations. Avis Budget’s board also authorized an additional $1 billion in share buybacks.
The stock was up more than 90% shortly after 2 p.m. Trading in the stock was halted multiple times Tuesday morning, and it was up more than 200% for the day at one point.
Vague comments on the conference call by executives about increasing purchases of electric cars for its fleet appeared to add juice to the rally, as chief executive officer Joseph Ferraro said the company would play a “big role” in the growth of electric cars in the U.S., according to a transcript of the earnings call from FactSet.
A large amount of bets against the stock likely contributed to the size and speed of the day’s move.
