Goodyear Tire & Rubber (NASDAQ:GT) Stock Sees Heavy Put Option Buying

Key Points

• Put-option buying surged: Traders purchased 6,750 Goodyear put options, about 75% above the typical daily volume.
• Shares and quarterly results weakened: The stock fell 2% to $4.09; Goodyear missed earnings and revenue estimates, and revenue declined 2.3% year over year.
• Outlook remains cautious: Analysts’ consensus rating is “Reduce,” with an average price target of $7.46. CEO Mark Stewart is also leaving immediately, with director Roger Wood serving as interim CEO.

The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report) was the target of unusually large options trading on Tuesday. Stock traders purchased 6,750 put options on the company. This is an increase of approximately 75% compared to the typical daily volume of 3,864 put options.

Wall Street Analyst Weigh In

GT has been the topic of a number of recent research reports. Zacks Research downgraded shares of Goodyear Tire & Rubber from a "hold" rating to a "strong sell" rating in a research note on Friday, October 16th. Wall Street Zen raised shares of Goodyear Tire & Rubber from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 8th. JPMorgan Chase & Co. reduced their target price on shares of Goodyear Tire & Rubber from $10.00 to $9.00 and set an "overweight" rating on the stock in a report on Friday, October 2nd. Weiss Ratings restated a "sell (d)" rating on shares of Goodyear Tire & Rubber in a research report on Wednesday, November 4th. Finally, Citigroup decreased their target price on shares of Goodyear Tire & Rubber from $8.00 to $5.00 and set a "neutral" rating on the stock in a research report on Monday. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average target price of $7.46.

Goodyear Tire & Rubber Trading Down 2.0%

Shares of NASDAQ GT traded down $0.09 during trading hours on Tuesday, reaching $4.09. The stock had a trading volume of 4,141,066 shares, compared to its average volume of 8,779,163. The company has a current ratio of 1.09, a quick ratio of 0.55 and a debt-to-equity ratio of 1.92. The firm has a market cap of $1.18 billion, a price-to-earnings ratio of -2.01 and a beta of 1.22. The business's fifty day moving average price is $4.91 and its two-hundred day moving average price is $6.52. Goodyear Tire & Rubber has a 52-week low of $4.00 and a 52-week high of $10.62.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The company reported ($0.11) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.05). The business had revenue of $4.54 billion during the quarter, compared to the consensus estimate of $4.59 billion. Goodyear Tire & Rubber had a negative net margin of 3.33% and a negative return on equity of 6.48%. The company's revenue for the quarter was down 2.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.28 EPS. Analysts expect that Goodyear Tire & Rubber will post -1.03 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in GT. BlackRock Inc. acquired a new position in shares of Goodyear Tire & Rubber during the 2nd quarter worth approximately $238,776,000. Canada Pension Plan Investment Board purchased a new stake in shares of Goodyear Tire & Rubber in the second quarter valued at approximately $78,278,000. Cibc World Market Inc. purchased a new stake in shares of Goodyear Tire & Rubber in the second quarter valued at approximately $18,676,000. Bank of America Corp DE purchased a new stake in shares of Goodyear Tire & Rubber in the second quarter valued at approximately $17,313,000. Finally, Man Group plc acquired a new stake in shares of Goodyear Tire & Rubber in the second quarter valued at approximately $12,415,000. Hedge funds and other institutional investors own 84.19% of the company's stock.

Key Goodyear Tire & Rubber News

Here are the key news stories impacting Goodyear Tire & Rubber this week:

• Neutral Sentiment: Citigroup lowered its price target on Goodyear from $8 to $5 and kept a “neutral” rating. The new target still implies potential upside from the share price cited in the report, but the sizable cut reflects a more cautious outlook. Citigroup rating update
• Neutral Sentiment: A Zacks analysis highlighted Goodyear’s international revenue trends as a factor to watch in Wall Street forecasts, but the supplied report does not specify whether those trends are improving or weakening. Zacks analysis of international revenue
• Negative Sentiment: Mark Stewart is leaving as CEO effective immediately. Director Roger Wood will serve as interim CEO while the board searches for a permanent successor and continues its strategic assessment. The abrupt transition during a turnaround may concern investors about execution and leadership continuity. Goodyear corporate update

Goodyear Tire & Rubber Company Profile

The Goodyear Tire & Rubber Company is a global manufacturer of tires and related products and services. Founded in Akron, Ohio, in 1898, the company makes tires for passenger and light trucks, commercial vehicles, aircraft, and off-road equipment, as well as for original-equipment and replacement markets.

Goodyear sells products under brands including Goodyear and Cooper. Its tire-related offerings also include retreading, vehicle and fleet services, and solutions for commercial customers.

The company serves customers across markets around the world and is headquartered in Akron, Ohio.

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