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

Key Points

• Goodyear shares fell 3.3% to a new 52-week low of $4.11, well below their 50-day and 200-day moving averages. The company has a market capitalization of about $1.19 billion and a negative P/E ratio.
• Analysts maintain a consensus “Hold” rating with an average price target of $8.06, although JPMorgan lowered its target from $10 to $9. Ratings range from Buy to Sell.
• Goodyear’s latest quarterly loss was $0.61 per share, slightly better than estimates, while revenue of $4.25 billion exceeded forecasts but declined 4.8% year over year. Institutional investors own approximately 84.19% of the stock.

The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $4.11 and last traded at $4.15, with a volume of 7,803,192 shares. The stock had previously closed at $4.29.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Wall Street Zen raised Goodyear Tire & Rubber from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 8th. JPMorgan Chase & Co. cut their target price on Goodyear Tire & Rubber from $10.00 to $9.00 and set an "overweight" rating on the stock in a report on Friday, October 2nd. Zacks Research upgraded Goodyear Tire & Rubber from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Goodyear Tire & Rubber in a research report on Friday, August 7th. 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, the stock has a consensus rating of "Hold" and an average target price of $8.06.

Goodyear Tire & Rubber Trading Down 3.3%

The company has a quick ratio of 0.55, a current ratio of 1.09 and a debt-to-equity ratio of 1.92. The firm's 50-day moving average price is $5.43 and its 200 day moving average price is $6.16. The company has a market capitalization of $1.19 billion, a P/E ratio of -0.47 and a beta of 1.22.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported ($0.61) earnings per share for the quarter, topping analysts' consensus estimates of ($0.63) by $0.02. The company had revenue of $4.25 billion for the quarter, compared to analyst estimates of $4.19 billion. Goodyear Tire & Rubber had a negative net margin of 14.37% and a negative return on equity of 2.95%. The firm's revenue was down 4.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.17) EPS. As a group, equities research analysts predict that The Goodyear Tire & Rubber Company will post -0.48 earnings per share for the current year.

Institutional Trading of Goodyear Tire & Rubber

Several institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new position in Goodyear Tire & Rubber during the second quarter worth about $238,776,000. Dimensional Fund Advisors LP grew its position in Goodyear Tire & Rubber by 8.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 16,558,938 shares of the company's stock worth $109,778,000 after purchasing an additional 1,352,085 shares in the last quarter. Canada Pension Plan Investment Board bought a new stake in Goodyear Tire & Rubber in the 2nd quarter worth about $78,278,000. Cibc World Market Inc. bought a new stake in Goodyear Tire & Rubber in the 2nd quarter worth about $18,676,000. Finally, Bank of America Corp DE purchased a new stake in Goodyear Tire & Rubber in the 2nd quarter valued at about $17,313,000. Hedge funds and other institutional investors own 84.19% of the company's stock.

Goodyear Tire & Rubber Company Profile

The Goodyear Tire & Rubber Company NASDAQ: GT is a global tire manufacturer headquartered in Akron, Ohio. Founded in 1898, the company develops, produces, markets and distributes tires for passenger vehicles, trucks, buses, aircraft, motorcycles, off-road vehicles and other applications.

Goodyear serves original-equipment and replacement markets through a portfolio of tire brands that includes Goodyear and Cooper, along with related products and services. Its offerings are sold through tire dealers, automotive retailers, distributors and other commercial channels, as well as to vehicle manufacturers.

The company operates across North America, Europe and other international markets.

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