Goodyear Tire & Rubber (NASDAQ:GT) Sets New 12-Month Low - Time to Sell?

Key Points

• Goodyear shares fell to a new 52-week low of $4.60, trading below both their 50-day and 200-day moving averages. The company has a $1.34 billion market capitalization and elevated leverage, with a debt-to-equity ratio of 1.92.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold” with an $8.06 price target, while several firms maintain Sell or Strong Sell ratings; JPMorgan lowered its target to $9.00 but kept an Overweight rating.
• Goodyear beat quarterly EPS and revenue estimates, but revenue declined 4.8% year over year, margins remained negative, and analysts expect a full-year loss of $0.46 per share. Institutional investors own a substantial 84.19% of the company.

Shares of The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report) reached a new 52-week low on Thursday. The stock traded as low as $4.60 and last traded at $4.6550, with a volume of 790005 shares traded. The stock had previously closed at $4.69.

Analysts Set New Price Targets

GT has been the topic of several research analyst reports. Wall Street Zen upgraded Goodyear Tire & Rubber from a "strong sell" rating to a "sell" rating in a research report on Saturday, August 8th. Weiss Ratings reiterated a "sell (d)" rating on shares of Goodyear Tire & Rubber in a report on Friday, August 7th. Zacks Research raised Goodyear Tire & Rubber from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Finally, JPMorgan Chase & Co. cut their price target 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. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Goodyear Tire & Rubber has a consensus rating of "Hold" and a consensus target price of $8.06.

Goodyear Tire & Rubber Stock Down 0.7%

The stock has a market cap of $1.34 billion, a price-to-earnings ratio of -0.53 and a beta of 1.22. The firm's fifty day moving average price is $5.80 and its two-hundred day moving average price is $6.27. 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 (NASDAQ:GT - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($0.61) EPS for the quarter, beating the consensus estimate of ($0.63) by $0.02. Goodyear Tire & Rubber had a negative return on equity of 2.95% and a negative net margin of 14.37%.The company had revenue of $4.25 billion during the quarter, compared to the consensus estimate of $4.19 billion. During the same period last year, the business posted ($0.17) EPS. The firm's revenue for the quarter was down 4.8% compared to the same quarter last year. Sell-side analysts forecast that The Goodyear Tire & Rubber Company will post -0.46 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Goodyear Tire & Rubber

Hedge funds have recently added to or reduced their stakes in the company. 180 Wealth Advisors LLC increased its holdings in Goodyear Tire & Rubber by 7.3% during the 1st quarter. 180 Wealth Advisors LLC now owns 25,658 shares of the company's stock worth $170,000 after acquiring an additional 1,747 shares during the period. Oregon Public Employees Retirement Fund boosted its holdings in Goodyear Tire & Rubber by 3.3% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 58,743 shares of the company's stock valued at $389,000 after purchasing an additional 1,900 shares during the period. Cidel Asset Management Inc. increased its holdings in shares of Goodyear Tire & Rubber by 19.1% in the first quarter. Cidel Asset Management Inc. now owns 14,761 shares of the company's stock worth $98,000 after purchasing an additional 2,369 shares during the period. Sequoia Financial Advisors LLC raised its position in shares of Goodyear Tire & Rubber by 16.7% in the second quarter. Sequoia Financial Advisors LLC now owns 21,396 shares of the company's stock worth $141,000 after buying an additional 3,064 shares in the last quarter. Finally, Kestra Advisory Services LLC raised its position in shares of Goodyear Tire & Rubber by 6.8% in the first quarter. Kestra Advisory Services LLC now owns 49,687 shares of the company's stock worth $329,000 after buying an additional 3,176 shares in the last quarter. Institutional investors and hedge funds 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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