Goodyear Tire & Rubber Sees Unusually High Options Volume (NASDAQ:GT)

Key Points

• Goodyear Tire & Rubber experienced a significant spike in options trading, with 24,504 call options purchased, reflecting a 402% increase over the typical daily volume.
• The company reported a quarterly earnings miss of ($0.17) EPS, falling short of the consensus estimate of $0.14, alongside a revenue decline of 2.3% year over year.
• Recent analyst sentiment has been mixed, with multiple downgrades, leading to an average rating of "Hold" and a price target of $11.93 for Goodyear Tire & Rubber shares.

The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report) saw some unusual options trading on Tuesday. Traders purchased 24,504 call options on the stock. This represents an increase of approximately 402% compared to the typical daily volume of 4,877 call options.

Goodyear Tire & Rubber Price Performance

NASDAQ GT traded down $0.04 during trading hours on Tuesday, reaching $6.70. The company's stock had a trading volume of 3,266,333 shares, compared to its average volume of 6,823,060. The company's 50-day moving average is $8.29 and its two-hundred day moving average is $9.81. Goodyear Tire & Rubber has a 1-year low of $6.51 and a 1-year high of $12.03. The firm has a market capitalization of $1.92 billion, a price-to-earnings ratio of 4.72, a P/E/G ratio of 0.87 and a beta of 1.28. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.15 and a quick ratio of 0.63.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of $0.14 by ($0.31). Goodyear Tire & Rubber had a net margin of 2.22% and a return on equity of 3.17%. The company had revenue of $4.47 billion during the quarter, compared to analyst estimates of $4.50 billion. During the same period in the prior year, the business posted $0.19 EPS. Goodyear Tire & Rubber's revenue for the quarter was down 2.3% compared to the same quarter last year. On average, equities analysts predict that Goodyear Tire & Rubber will post 1.5 EPS for the current year.

Analyst Ratings Changes

A number of research firms have recently weighed in on GT. Hsbc Global Res cut shares of Goodyear Tire & Rubber from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 20th. Weiss Ratings restated a "sell (d)" rating on shares of Goodyear Tire & Rubber in a research note on Wednesday, October 8th. BNP Paribas Exane restated a "neutral" rating and set a $9.00 target price on shares of Goodyear Tire & Rubber in a research note on Friday, August 8th. Citigroup started coverage on Goodyear Tire & Rubber in a research note on Monday, September 8th. They set a "neutral" rating and a $10.00 price target on the stock. Finally, BNP Paribas downgraded Goodyear Tire & Rubber from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 8th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Goodyear Tire & Rubber has an average rating of "Hold" and an average price target of $11.93.

Institutional Inflows and Outflows

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

Goodyear Tire & Rubber Company Profile

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.

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