Avis Budget Shares Surge 340% on Short Squeeze, ATM Offering to Raise $2B
Shares of Avis Budget surged 340% last month and jumped 13% on Thursday in a record short squeeze that cut the free float to half of tradeable shares. Management plans an ATM offering of up to 5 million shares to raise over $2 billion for debt reduction.
1. Unprecedented Rally Details
Share price jumped 340% over the past month and advanced 13% in a single session as hedge fund activity forced a record short squeeze.
2. Short Interest and Float Dynamics
Short interest reached 54% of the free float, creating a days-to-cover ratio of 7.3. Pentwater Capital built a 22% stake by exercising call options, sharply reducing available shares.
3. Pre-Squeeze Financial Health
Avis Budget entered 2026 with over $25 billion in debt, a near-$1 billion net loss, and just $500 million in cash, while revenue growth remained flat.
4. ATM Offering Strategy
Management launched an At-the-Market offering to sell up to 5 million shares, potentially generating more than $2 billion to retire high-interest debt and improve long-term balance sheet strength.