Pentwater trims Avis Budget Group (NASDAQ: CAR) stake with stock and call option sales
Rhea-AI Filing Summary
Pentwater-managed funds reported significant selling in Avis Budget Group on April 23, 2026. Funds advised by Pentwater Capital Management sold 843,201 shares of Avis Budget Group common stock at a price of $264.60 per share in open-market transactions. After these stock sales, the filing shows indirect holdings of 3,485,000 common shares.
The same day, affiliated funds also sold exchange-traded call options described as an obligation to sell Avis common stock, at strike prices ranging from $220.00 to $270.00 per share and expiring on April 24, 2026. The filing attributes trades to specific funds such as Pentwater Merger Arbitrage Master Fund Ltd. and Oceana Master Fund Ltd., with Pentwater and Matthew Halbower disclaiming beneficial ownership beyond any pecuniary interest. The reporting persons note they are in discussions with Avis Budget Group and state they will voluntarily pay any realized short swing profits to the issuer to the extent required under Section 16(b).
Positive
- None.
Negative
- None.
Insights
Pentwater-advised funds made large stock sales and wrote short-dated calls in Avis Budget Group.
Funds advised by Pentwater Capital Management LP sold 843,201 Avis Budget Group common shares at $264.60 while still holding 3,485,000 shares indirectly. This indicates a notable but partial reduction of their economic exposure rather than a full exit.
In parallel, several Pentwater-associated funds sold listed call options obligating them to deliver Avis shares at strike prices between $220.00 and $270.00, all expiring on April 24, 2026. These option sales resemble covered-call or overwrite activity tied to their remaining equity holdings, but the filing does not state their broader strategy.
The footnotes clarify that the transactions are attributed to specific funds like Pentwater Merger Arbitrage Master Fund Ltd. and Oceana Master Fund Ltd., with Pentwater and Matthew Halbower disclaiming beneficial ownership except for any pecuniary interest. They also state they are in discussions with Avis Budget Group and intend to remit any realized short swing profits to the issuer as required under Section 16(b). Given the lack of information on overall fund positioning or motives, this filing is best viewed as a sizeable but routine portfolio adjustment rather than a standalone signal on Avis’s fundamentals.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Call Option (obligation to sell) | 1 | $20.06 | $20.06 |
| Sale | Call Option (obligation to sell) | 7 | $20.06 | $140.42 |
| Sale | Call Option (obligation to sell) | 4 | $20.06 | $80.24 |
| Sale | Call Option (obligation to sell) | 32 | $20.06 | $641.92 |
| Sale | Call Option (obligation to sell) | 10 | $19.97 | $199.70 |
| Sale | Call Option (obligation to sell) | 2 | $19.97 | $39.94 |
| Sale | Call Option (obligation to sell) | 2 | $19.97 | $39.94 |
| Sale | Call Option (obligation to sell) | 14 | $19.97 | $279.58 |
| Sale | Call Option (obligation to sell) | 8 | $19.97 | $159.76 |
| Sale | Call Option (obligation to sell) | 64 | $19.97 | $1K |
| Sale | Call Option (obligation to sell) | 5 | $22.66 | $113.30 |
| Sale | Call Option (obligation to sell) | 1 | $22.66 | $22.66 |
| Sale | Call Option (obligation to sell) | 1 | $22.66 | $22.66 |
| Sale | Call Option (obligation to sell) | 7 | $22.66 | $158.62 |
| Sale | Call Option (obligation to sell) | 4 | $22.66 | $90.64 |
| Sale | Call Option (obligation to sell) | 32 | $22.66 | $725.12 |
| Sale | Call Option (obligation to sell) | 5 | $19.06 | $95.30 |
| Sale | Call Option (obligation to sell) | 1 | $19.06 | $19.06 |
| Sale | Call Option (obligation to sell) | 7 | $19.06 | $133.42 |
| Sale | Call Option (obligation to sell) | 4 | $19.06 | $76.24 |
| Sale | Call Option (obligation to sell) | 33 | $19.06 | $628.98 |
| Sale | Call Option (obligation to sell) | 5 | $21.08 | $105.40 |
| Sale | Call Option (obligation to sell) | 1 | $21.08 | $21.08 |
| Sale | Call Option (obligation to sell) | 1 | $21.08 | $21.08 |
| Sale | Call Option (obligation to sell) | 7 | $21.08 | $147.56 |
| Sale | Call Option (obligation to sell) | 4 | $21.08 | $84.32 |
| Sale | Call Option (obligation to sell) | 32 | $21.08 | $674.56 |
| Sale | Call Option (obligation to sell) | 5 | $17.22 | $86.10 |
| Sale | Call Option (obligation to sell) | 1 | $17.22 | $17.22 |
| Sale | Call Option (obligation to sell) | 1 | $17.22 | $17.22 |
| Sale | Common Stock | 843,201 | $264.60 | $223.11M |
Footnotes (1)
- This Form 4/A is filed by Pentwater Capital Management LP ("PCM") and Matthew Halbower ("Mr. Halbower") (collectively, the "Reporting Persons") with respect to securities held by certain funds (the "Pentwater Funds"), including the funds named herein, to which PCM serves as investment adviser. Mr. Halbower is the sole shareholder of MCH PWCM Holdings Inc., the general partner of PCM. Each of the foregoing disclaims beneficial ownership in the securities reported except to the extent of its or his pecuniary interest, if any, therein, and this report shall not be deemed to be an admission that such person is the beneficial owner of such securities for purposes of Section 16 or for any other purpose. The Reporting Persons are in discussions with the Issuer and, to the extent required pursuant to Section 16(b), will voluntarily pay any realized short swing profits. The Reporting Persons are filing this Form 4/A solely to amend and restate footnotes 2-8 of the Form 4 as follows. Trades by Oceana Master Fund Ltd. Trades by Pentwater Credit Master Fund Ltd. Trades by LMA SPC for and on behalf of the MAP 98 Segregated Portfolio. Trades by Pentwater Equity Opportunities Master Fund Ltd. Trades by Crown Managed Accounts SPC acting for and on behalf of Crown/PW Segregated Portfolio. Trades by Pentwater Merger Arbitrage Master Fund Ltd. Exercisable at any time.