Goodyear Tire & Rubber (NASDAQ:GT) Sets New 12-Month Low Following Analyst Downgrade

Key Points

• Goodyear shares hit a new 52-week low, trading as low as $4.07, after Citigroup cut its price target from $8 to $5 while maintaining a neutral rating.
• The company faces added uncertainty after CEO Mark Stewart left immediately; board member Roger Wood was named interim CEO while the board searches for a permanent replacement.
• Recent quarterly results fell short of expectations: Goodyear reported a $0.11 loss per share versus the forecast $0.06 loss, and revenue declined 2.3% year over year to $4.54 billion.

The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report) hit a new 52-week low on Tuesday after Citigroup lowered their price target on the stock from $8.00 to $5.00. Citigroup currently has a neutral rating on the stock. Goodyear Tire & Rubber traded as low as $4.07 and last traded at $4.1350, with a volume of 1,000,101 shares. The stock had previously closed at $4.18.

Other analysts have also issued research reports about the company. Weiss Ratings reiterated a "sell (d)" rating on shares of Goodyear Tire & Rubber in a report on Wednesday, November 4th. JPMorgan Chase & Co. reduced their price objective on shares of Goodyear Tire & Rubber from $10.00 to $9.00 and set an "overweight" rating for the company in a research report on Friday, October 2nd. Wall Street Zen raised shares of Goodyear Tire & Rubber from a "strong sell" rating to a "sell" rating in a report on Saturday, August 8th. Finally, Zacks Research cut Goodyear Tire & Rubber from a "hold" rating to a "strong sell" rating in a report on Friday, October 16th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, Goodyear Tire & Rubber presently has an average rating of "Reduce" and a consensus target price of $7.46.

More Goodyear Tire & Rubber News

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

• Negative Sentiment: Stewart left the CEO role effective immediately. Board member Roger Wood was named interim CEO as the board searches for a permanent successor, adding leadership uncertainty while Goodyear works to strengthen its business. Goodyear Tire CEO Mark Stewart steps down as company continues turnaround plan
• Negative Sentiment: Citigroup cut its price target to $5 from $8 and maintained a neutral rating. Although the new target is above the cited share price, the sizable reduction signals a more cautious outlook. Citigroup stock recommendations

Institutional Investors Weigh In On Goodyear Tire & Rubber

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

Goodyear Tire & Rubber Stock Down 1.1%

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 company has a market capitalization of $1.19 billion, a P/E ratio of -2.04 and a beta of 1.22. The stock has a 50 day moving average price of $4.91 and a 200 day moving average price of $6.52.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The company reported ($0.11) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.05). Goodyear Tire & Rubber had a negative return on equity of 6.48% and a negative net margin of 3.33%. The firm had revenue of $4.54 billion for the quarter, compared to the consensus estimate of $4.59 billion. During the same quarter in the prior year, the firm earned $0.28 EPS. The company's revenue was down 2.3% on a year-over-year basis. On average, research analysts anticipate that The Goodyear Tire & Rubber Company will post -1.03 earnings per share for the current fiscal year.

About Goodyear Tire & Rubber

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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