Goodyear Tire & Rubber (NASDAQ:GT) Reaches New 1-Year Low - What's Next?

Key Points

• Goodyear shares fell to a new 52-week low of $4.86, well below their 50-day and 200-day moving averages of $6.04 and $6.34, respectively.
• Analyst sentiment remains mixed but leans cautious: the stock has a consensus “Hold” rating and an average price target of $8.26, with two Buy, three Hold and two Sell ratings.
• Goodyear reported a quarterly loss of $0.61 per share, slightly better than estimates, while revenue reached $4.25 billion but declined 4.8% year over year; the company continues to face negative margins and elevated leverage.

The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report) shares reached a new 52-week low on Thursday. The stock traded as low as $4.86 and last traded at $4.8550, with a volume of 487084 shares changing hands. The stock had previously closed at $4.97.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the stock. Weiss Ratings reissued a "sell (d)" rating on shares of Goodyear Tire & Rubber in a research report on Friday, August 7th. JPMorgan Chase & Co. boosted their target price on Goodyear Tire & Rubber from $9.00 to $10.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Wall Street Zen raised Goodyear Tire & Rubber from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 8th. Finally, Zacks Research upgraded Goodyear Tire & Rubber from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $8.26.

Goodyear Tire & Rubber Stock Performance

The company has a debt-to-equity ratio of 1.92, a current ratio of 1.09 and a quick ratio of 0.55. The company's fifty day simple moving average is $6.04 and its two-hundred day simple moving average is $6.34. The stock has a market cap of $1.39 billion, a price-to-earnings ratio of -0.55 and a beta of 1.10.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($0.61) earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 firm had revenue of $4.25 billion during the quarter, compared to analysts' expectations of $4.19 billion. During the same period last year, the company earned ($0.17) earnings per share. The business's revenue was down 4.8% on a year-over-year basis. On average, analysts forecast that The Goodyear Tire & Rubber Company will post -0.43 earnings per share for the current year.

Institutional Trading of Goodyear Tire & Rubber

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Nykredit A S purchased a new position in shares of Goodyear Tire & Rubber during the second quarter valued at approximately $27,000. Allworth Financial LP purchased a new stake in Goodyear Tire & Rubber in the 2nd quarter valued at $33,000. EverSource Wealth Advisors LLC lifted its stake in Goodyear Tire & Rubber by 656.0% during the 1st quarter. EverSource Wealth Advisors LLC now owns 6,048 shares of the company's stock valued at $40,000 after acquiring an additional 5,248 shares in the last quarter. Magnolia Capital Advisors LLC bought a new position in Goodyear Tire & Rubber during the 2nd quarter valued at $67,000. Finally, Sovereign Financial Group Inc. bought a new position in Goodyear Tire & Rubber during the 1st quarter valued at $70,000. 84.19% of the stock is owned by institutional investors.

Goodyear Tire & Rubber Company Profile

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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