Goodyear Tire & Rubber's (GT) Hold Rating Reaffirmed at HSBC

Key Points

• HSBC has reiterated its "hold" rating for Goodyear Tire & Rubber with a revised price target of $9.50, down from $15.50, indicating an 11.76% potential upside.
• Goodyear recently reported a loss of $0.17 earnings per share for the last quarter, missing the consensus estimate of $0.14, and its revenue decreased by 2.3% year-over-year.
• A majority of analysts maintain a "hold" or "buy" rating for Goodyear, with a consensus target price of $12.25 given by MarketBeat.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report)'s stock had its "hold" rating reissued by equities researchers at HSBC in a research report issued on Wednesday, Marketbeat reports. They presently have a $9.50 target price on the stock, down from their previous target price of $15.50. HSBC's price objective suggests a potential upside of 10.53% from the stock's current price.

Other equities research analysts also recently issued reports about the stock. Wall Street Zen downgraded shares of Goodyear Tire & Rubber from a "buy" rating to a "hold" rating in a research report on Saturday, May 10th. BNP Paribas downgraded shares of Goodyear Tire & Rubber from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 8th. JPMorgan Chase & Co. reiterated an "overweight" rating and set a $17.00 target price (down from $18.00) on shares of Goodyear Tire & Rubber in a research report on Thursday, May 22nd. BNP Paribas Exane reiterated a "neutral" rating and set a $9.00 target price on shares of Goodyear Tire & Rubber in a research report on Friday, August 8th. Finally, Deutsche Bank Aktiengesellschaft cut their target price on shares of Goodyear Tire & Rubber from $15.00 to $12.00 and set a "buy" rating on the stock in a research report on Monday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $12.25.

Goodyear Tire & Rubber Price Performance

Shares of GT traded down $0.0550 during mid-day trading on Wednesday, reaching $8.5950. The company had a trading volume of 2,174,191 shares, compared to its average volume of 6,528,560. The company's 50 day simple moving average is $10.21 and its 200 day simple moving average is $10.10. Goodyear Tire & Rubber has a 1-year low of $7.27 and a 1-year high of $12.03. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.63 and a current ratio of 1.15. The company has a market capitalization of $2.46 billion, a price-to-earnings ratio of 6.05, a P/E/G ratio of 0.76 and a beta of 1.37.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported ($0.17) earnings per share for the quarter, missing analysts' consensus estimates 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 quarter in the previous year, the business posted $0.19 earnings per share. The company's revenue for the quarter was down 2.3% on a year-over-year basis. Analysts expect that Goodyear Tire & Rubber will post 1.5 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Nisa Investment Advisors LLC raised its holdings in Goodyear Tire & Rubber by 3.3% during the 1st quarter. Nisa Investment Advisors LLC now owns 28,766 shares of the company's stock worth $266,000 after purchasing an additional 932 shares during the last quarter. Envestnet Asset Management Inc. raised its holdings in Goodyear Tire & Rubber by 6.3% during the 2nd quarter. Envestnet Asset Management Inc. now owns 17,021 shares of the company's stock worth $177,000 after purchasing an additional 1,011 shares during the last quarter. State of Michigan Retirement System raised its holdings in Goodyear Tire & Rubber by 1.9% during the 2nd quarter. State of Michigan Retirement System now owns 68,726 shares of the company's stock worth $713,000 after purchasing an additional 1,300 shares during the last quarter. SummerHaven Investment Management LLC increased its stake in shares of Goodyear Tire & Rubber by 1.9% in the 2nd quarter. SummerHaven Investment Management LLC now owns 74,711 shares of the company's stock valued at $775,000 after acquiring an additional 1,393 shares in the last quarter. Finally, John G Ullman & Associates Inc. increased its stake in shares of Goodyear Tire & Rubber by 9.1% in the 1st quarter. John G Ullman & Associates Inc. now owns 18,000 shares of the company's stock valued at $166,000 after acquiring an additional 1,500 shares in the last quarter. Institutional investors own 84.19% of the company's stock.

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.