Goodyear Tire & Rubber (NASDAQ:GT) Shares Gap Down Following Weak Earnings

Key Points

• Goodyear Tire & Rubber shares dropped significantly, opening at $8.60 after previously closing at $10.26, due to weaker-than-expected quarterly earnings.
• The company reported a loss of ($0.17) earnings per share, missing analysts' estimates of $0.14, and recorded revenue of $4.47 billion, slightly below expectations.
• Despite the poor quarterly results, analyst ratings for Goodyear are mixed, with several upgrades and a consensus rating of "Moderate Buy" and a target price of $13.00.

The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report)'s share price gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $10.26, but opened at $8.60. Goodyear Tire & Rubber shares last traded at $8.65, with a volume of 8,224,695 shares changing hands.

The company reported ($0.17) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.31). The company had revenue of $4.47 billion for the quarter, compared to analyst estimates of $4.50 billion. Goodyear Tire & Rubber had a return on equity of 3.22% and a net margin of 2.22%. The firm's quarterly revenue was down 2.3% on a year-over-year basis. During the same quarter last year, the company posted $0.19 earnings per share.

Analyst Ratings Changes

Several analysts recently weighed in on GT shares. Wall Street Zen cut shares of Goodyear Tire & Rubber from a "buy" rating to a "hold" rating in a research note on Saturday, May 10th. BNP Paribas Exane reissued a "neutral" rating and issued a $9.00 price objective on shares of Goodyear Tire & Rubber in a research note on Friday. BNP Paribas cut shares of Goodyear Tire & Rubber from a "strong-buy" rating to a "hold" rating in a research note on Friday. Finally, JPMorgan Chase & Co. reaffirmed an "overweight" rating and set a $17.00 price target (down previously from $18.00) on shares of Goodyear Tire & Rubber in a research report on Thursday, May 22nd. Four investment analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $13.00.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Solstein Capital LLC purchased a new position in shares of Goodyear Tire & Rubber during the 2nd quarter valued at $26,000. Ameritas Advisory Services LLC purchased a new position in shares of Goodyear Tire & Rubber during the 2nd quarter valued at $29,000. Caitong International Asset Management Co. Ltd grew its position in shares of Goodyear Tire & Rubber by 3,894.3% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 2,796 shares of the company's stock valued at $29,000 after purchasing an additional 2,726 shares in the last quarter. GAMMA Investing LLC grew its position in Goodyear Tire & Rubber by 147.5% in the first quarter. GAMMA Investing LLC now owns 2,809 shares of the company's stock worth $26,000 after acquiring an additional 1,674 shares in the last quarter. Finally, FNY Investment Advisers LLC purchased a new position in Goodyear Tire & Rubber in the second quarter worth $31,000. 84.19% of the stock is currently owned by hedge funds and other institutional investors.

Goodyear Tire & Rubber Price Performance

The firm's 50-day moving average is $10.77 and its 200-day moving average is $10.13. The company has a market capitalization of $2.39 billion, a PE ratio of 5.89, a price-to-earnings-growth ratio of 0.26 and a beta of 1.37. The company has a quick ratio of 0.64, a current ratio of 1.22 and a debt-to-equity ratio of 1.44.

About Goodyear Tire & Rubber

Goodyear Tire & Rubber Co engages in the development, manufacture, distribution, and sale of tires. It operates through the following geographical segments: Americas, Europe, Middle East, and Africa, and Asia Pacific. The Americas segment is involved in the development, manufacture, distribution, and sale of tires and related products and services in North, Central, and South America.