Stock Traders Purchase Large Volume of Goodyear Tire & Rubber Put Options (NASDAQ:GT)

Key Points

• Goodyear saw unusually heavy bearish options activity: Traders purchased 9,421 put options, about 88% above the typical daily volume.
• Analyst sentiment remains mixed but leans neutral: The consensus rating is “Hold,” with an average price target of $8.26; targets and ratings ranged from sell to overweight.
• Shares rose 0.3% to $5.26, near the company’s 12-month low, while Goodyear reported a quarterly loss of $0.61 per share and revenue declined 4.8% year over year to $4.25 billion.

The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Stock traders bought 9,421 put options on the stock. This is an increase of approximately 88% compared to the typical daily volume of 5,003 put options.

Analysts Set New Price Targets

GT has been the topic of several research reports. Wall Street Zen upgraded shares of Goodyear Tire & Rubber from a "strong sell" rating to a "sell" rating in a research report on Saturday, August 8th. JPMorgan Chase & Co. lifted their price objective on shares of Goodyear Tire & Rubber from $9.00 to $10.00 and gave the stock an "overweight" rating in a research note on Friday, August 7th. Weiss Ratings reiterated a "sell (d)" rating on shares of Goodyear Tire & Rubber in a report on Friday, August 7th. Finally, Zacks Research raised shares of Goodyear Tire & Rubber from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $8.26.

Goodyear Tire & Rubber Trading Up 0.3%

NASDAQ GT traded up $0.01 on Wednesday, hitting $5.26. 3,171,872 shares of the company were exchanged, compared to its average volume of 8,635,585. The company has a debt-to-equity ratio of 1.92, a current ratio of 1.09 and a quick ratio of 0.55. Goodyear Tire & Rubber has a twelve month low of $5.18 and a twelve month high of $10.62. The firm has a market capitalization of $1.52 billion, a P/E ratio of -0.60 and a beta of 1.10. The company's 50 day moving average price is $6.44 and its 200-day moving average price is $6.54.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.61) earnings per share for the quarter, topping the consensus estimate of ($0.63) by $0.02. Goodyear Tire & Rubber had a negative net margin of 14.37% and a negative return on equity of 2.95%. The business had revenue of $4.25 billion for the quarter, compared to the consensus estimate of $4.19 billion. During the same period last year, the firm posted ($0.17) earnings per share. The firm's quarterly revenue was down 4.8% compared to the same quarter last year. Analysts predict that Goodyear Tire & Rubber will post -0.43 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Bastion Asset Management Inc. boosted its stake in shares of Goodyear Tire & Rubber by 72.9% during the 4th quarter. Bastion Asset Management Inc. now owns 963,938 shares of the company's stock worth $8,076,000 after acquiring an additional 406,410 shares in the last quarter. WINTON GROUP Ltd acquired a new stake in Goodyear Tire & Rubber in the 2nd quarter worth approximately $1,560,000. Canada Pension Plan Investment Board acquired a new stake in Goodyear Tire & Rubber in the 2nd quarter worth approximately $78,278,000. Cibc World Market Inc. bought a new stake in Goodyear Tire & Rubber during the second quarter worth approximately $18,676,000. Finally, Empowered Funds LLC bought a new stake in Goodyear Tire & Rubber during the second quarter worth approximately $6,852,000. Hedge funds and other institutional investors own 84.19% of the company's stock.

About Goodyear Tire & Rubber

Goodyear Tire & Rubber Company develops, manufactures, markets and distributes tires and related products and services. Its portfolio includes tires for passenger cars, SUVs, trucks, buses, commercial fleets, aircraft, mining and other off-the-road applications. The company serves both original-equipment manufacturers and replacement-tire customers.

Goodyear markets products primarily under the Goodyear brand, along with other brands and private-label offerings. Its business also includes tire-related services, fleet support, vehicle maintenance and mobility solutions designed to help commercial customers manage their transportation operations.

Founded in 1898 and headquartered in Akron, Ohio, Goodyear has built a global presence through manufacturing, distribution, retail and service operations.

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