Goodyear Tire & Rubber (NASDAQ:GT) Hits New 12-Month Low Following Analyst Downgrade

Key Points

• Goodyear Tire & Rubber shares fell to a new 52-week low after Wall Street Zen downgraded the stock from hold to sell, with the stock trading as low as $6.14.
• Other analysts have also turned cautious, with multiple firms cutting price targets or ratings; MarketBeat says the stock now has an average rating of “Reduce” and an average price target of $8.54.
• Despite the weaker stock performance, Goodyear’s latest quarterly results beat earnings and revenue estimates, though revenue still fell 8.7% year over year and the company continues to face profitability pressure.

The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report)'s stock price hit a new 52-week low during trading on Monday after Wall Street Zen downgraded the stock from a hold rating to a sell rating. The company traded as low as $6.14 and last traded at $5.9950, with a volume of 1793199 shares traded. The stock had previously closed at $6.51.

A number of other equities analysts have also commented on the stock. JPMorgan Chase & Co. reduced their target price on shares of Goodyear Tire & Rubber from $11.00 to $10.00 and set an "overweight" rating on the stock in a research report on Thursday, April 23rd. Zacks Research lowered shares of Goodyear Tire & Rubber from a "hold" rating to a "strong sell" rating in a research report on Wednesday, May 6th. Citigroup reduced their target price on shares of Goodyear Tire & Rubber from $10.00 to $8.00 and set a "neutral" rating on the stock in a research report on Friday. Deutsche Bank Aktiengesellschaft reduced their target price on shares of Goodyear Tire & Rubber from $12.00 to $9.00 and set a "buy" rating on the stock in a research report on Thursday, April 16th. Finally, TD Cowen reduced their target price on shares of Goodyear Tire & Rubber from $10.00 to $9.00 and set a "buy" rating on the stock in a research report on Wednesday, April 15th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $8.54.

Hedge Funds Weigh In On Goodyear Tire & Rubber

Hedge funds and other institutional investors have recently modified their holdings of the business. Focus Partners Wealth bought a new position in shares of Goodyear Tire & Rubber during the third quarter valued at approximately $25,000. EFG International AG bought a new position in shares of Goodyear Tire & Rubber during the fourth quarter valued at approximately $26,000. Los Angeles Capital Management LLC bought a new position in shares of Goodyear Tire & Rubber during the fourth quarter valued at approximately $26,000. Hantz Financial Services Inc. boosted its stake in shares of Goodyear Tire & Rubber by 384.8% during the third quarter. Hantz Financial Services Inc. now owns 5,289 shares of the company's stock valued at $40,000 after purchasing an additional 4,198 shares in the last quarter. Finally, Cloud Capital Management LLC bought a new position in shares of Goodyear Tire & Rubber during the third quarter valued at approximately $47,000. 84.19% of the stock is currently owned by institutional investors.

Goodyear Tire & Rubber Trading Down 6.1%

The company has a quick ratio of 0.51, a current ratio of 1.04 and a debt-to-equity ratio of 1.66. The stock's 50 day moving average price is $7.04 and its 200-day moving average price is $8.06. The stock has a market capitalization of $1.75 billion, a P/E ratio of -0.84, a P/E/G ratio of 0.60 and a beta of 1.17.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported ($0.39) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.44) by $0.05. The firm had revenue of $3.88 billion for the quarter, compared to the consensus estimate of $3.81 billion. Goodyear Tire & Rubber had a negative net margin of 11.64% and a positive return on equity of 0.93%. The company's quarterly revenue was down 8.7% on a year-over-year basis. During the same period last year, the firm earned ($0.04) earnings per share. As a group, equities research analysts expect that The Goodyear Tire & Rubber Company will post 0.29 earnings per share for the current year.

About Goodyear Tire & Rubber

The Goodyear Tire & Rubber Company is a leading tire manufacturer and rubber products supplier with more than a century of innovation in its portfolio. Founded in 1898 by Frank Seiberling in Akron, Ohio, the company has grown into a global enterprise known for its engineering expertise and quality standards. Over its history, Goodyear has pioneered advances in tire technology, from early pneumatic designs to modern high-performance and fuel-efficient solutions.

Goodyear's core business encompasses the design, production and distribution of tires for a variety of markets, including passenger cars, commercial trucks, off-the-road vehicles, aircraft and specialty applications.

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