Why Avis Budget Group's Shares Are Up Almost 90% Since April 30
Shares of Avis Budget Group (NASDAQ: CAR) jumped 30.6% in May, according to data provided by S&P Global Market Intelligence, and their rise didn't stop there. Shares rose another 49.9% from that level in just the first six trading sessions in June. In mid-morning trading Tuesday, they were up by a total of 89% from their April 30 closing level.
Avis Budget Group sold $500 million of senior notes in May with an interest rate of 10.5%, which is extremely high for any company. But investors weren't too concerned about the high price of that debt; instead, they were betting on an economic recovery that could revive the automotive rental company's fortunes.
Image source: Getty Images.
Source Fool.com
