Goodyear Tire & Rubber (NASDAQ:GT) Trading Down 6% - Should You Sell?

Key Points

• Goodyear shares fell about 6% to roughly $6.06, with trading volume below its average. The stock remains below both its 50-day and 200-day moving averages.
• Analysts have a mixed but generally cautious view: Goodyear has an average rating of “Hold” and a consensus price target of $8.47, although several firms recently lowered their targets.
• The company narrowly beat quarterly EPS and revenue estimates, but revenue declined 4.8% year over year and profitability remained weak, with a negative net margin of 14.37%. Institutional investors own 84.19% of the shares.

The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report)'s share price was down 6% on Monday . The company traded as low as $6.11 and last traded at $6.0550. 3,448,705 shares changed hands during trading, a decline of 60% from the average daily volume of 8,595,379 shares. The stock had previously closed at $6.44.

Analysts Set New Price Targets

GT has been the topic of several recent research reports. Citigroup dropped their target price on Goodyear Tire & Rubber from $10.00 to $8.00 and set a "neutral" rating on the stock in a research report on Friday, May 8th. TD Cowen decreased their price objective on Goodyear Tire & Rubber from $10.00 to $9.00 and set a "buy" rating for the company in a research note on Wednesday, April 15th. JPMorgan Chase & Co. raised their price objective on Goodyear Tire & Rubber from $9.00 to $10.00 and gave the company an "overweight" rating in a research report on Friday. Wall Street Zen upgraded Goodyear Tire & Rubber from a "strong sell" rating to a "sell" rating in a research note on Saturday. Finally, Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $7.00 target price (down from $9.00) on shares of Goodyear Tire & Rubber in a report on Monday, May 11th. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Goodyear Tire & Rubber presently has an average rating of "Hold" and a consensus target price of $8.47.

Goodyear Tire & Rubber Trading Down 5.7%

The company has a 50 day moving average of $6.59 and a two-hundred day moving average of $7.19. The stock has a market capitalization of $1.75 billion, a PE ratio of -0.69 and a beta of 1.12. The company has a debt-to-equity ratio of 1.92, a quick ratio of 0.55 and a current ratio of 1.09.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.61) EPS for the quarter, beating analysts' consensus estimates of ($0.63) by $0.02. The company had revenue of $4.25 billion during the quarter, compared to analysts' expectations of $4.19 billion. Goodyear Tire & Rubber had a negative return on equity of 2.95% and a negative net margin of 14.37%.The firm's revenue was down 4.8% compared to the same quarter last year. During the same period last year, the business posted ($0.17) earnings per share. Sell-side analysts predict that The Goodyear Tire & Rubber Company will post -0.26 EPS for the current year.

Hedge Funds Weigh In On Goodyear Tire & Rubber

Hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Goodyear Tire & Rubber in the 2nd quarter worth $238,776,000. AQR Capital Management LLC grew its stake in Goodyear Tire & Rubber by 151.8% during the 4th quarter. AQR Capital Management LLC now owns 9,764,853 shares of the company's stock valued at $85,540,000 after purchasing an additional 5,886,935 shares during the last quarter. Wellington Management Group LLP increased its holdings in shares of Goodyear Tire & Rubber by 11.9% in the third quarter. Wellington Management Group LLP now owns 26,381,396 shares of the company's stock valued at $197,333,000 after purchasing an additional 2,796,332 shares during the period. Bridgeway Capital Management LLC acquired a new position in shares of Goodyear Tire & Rubber in the third quarter valued at about $15,280,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Goodyear Tire & Rubber in the second quarter worth about $11,378,000. 84.19% of the stock is owned by hedge funds and other institutional investors.

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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