NEW YORK (TheStreet) -- Shares of Avis Budget (CAR) were gaining 8% to $63.31 Tuesday following news that Glenview Capital Management took a stake in the company, and after rival car rental company Hertz (HTZ) raised its rental prices.
In a form filed with the SEC hedge fund Glenview Capital Management disclosed that it now owns about 5.4 million shares of Avis Budget, giving it a 5.12% stake in the car rental company.
Earlier Tuesday Avis Budget rival Hertz announced it will raise its rental prices due to "fleet depreciation increases, primarily related to residual value declines." The announcement helped boost shares of Hertz, and helped boost shares of Avis as well.
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TheStreet Ratings team rates AVIS BUDGET GROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AVIS BUDGET GROUP INC (CAR) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."