Goodyear Tire & Rubber (NASDAQ:GT) Shares Gap Down - Here's Why

Key Points

• Goodyear shares opened lower Monday at $4.15, down from the previous close of $4.36, and later traded at $4.265.
• Analyst opinions are mixed, but MarketBeat’s consensus rating is “Reduce”, with an average price target of $8.06.
• The latest quarter missed expectations: Goodyear reported an adjusted loss of $0.11 per share versus an expected loss of $0.06, while revenue fell 2.3% year over year to $4.54 billion.

The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report) shares gapped down before the market opened on Monday. The stock had previously closed at $4.36, but opened at $4.15. Goodyear Tire & Rubber shares last traded at $4.2650, with a volume of 1,393,083 shares changing hands.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on GT shares. Zacks Research cut Goodyear Tire & Rubber from a "hold" rating to a "strong sell" rating in a report on Friday, October 16th. JPMorgan Chase & Co. reduced their target price on Goodyear Tire & Rubber from $10.00 to $9.00 and set an "overweight" rating on the stock in a research note on Friday, October 2nd. Weiss Ratings reissued a "sell (d)" rating on shares of Goodyear Tire & Rubber in a research note on Wednesday. Finally, Wall Street Zen upgraded Goodyear Tire & Rubber from a "strong sell" rating to a "sell" rating in a report on Saturday, August 8th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Goodyear Tire & Rubber presently has a consensus rating of "Reduce" and an average target price of $8.06.

Goodyear Tire & Rubber Stock Performance

The company's 50-day moving average price is $4.95 and its 200 day moving average price is $6.55. The stock has a market capitalization of $1.20 billion, a PE ratio of -2.04 and a beta of 1.22. The company has a debt-to-equity ratio of 2.16, a quick ratio of 0.59 and a current ratio of 1.12.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.05). Goodyear Tire & Rubber had a negative net margin of 3.33% and a negative return on equity of 6.69%. The company had revenue of $4.54 billion for the quarter, compared to analysts' expectations of $4.59 billion. During the same quarter in the prior year, the firm earned $0.28 EPS. Goodyear Tire & Rubber's quarterly revenue was down 2.3% compared to the same quarter last year. On average, equities research analysts expect that The Goodyear Tire & Rubber Company will post -1.03 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

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

About Goodyear Tire & Rubber

Goodyear Tire & Rubber Company is a global tire manufacturer headquartered in Akron, Ohio. Founded in 1898, the company develops, produces, markets and distributes tires and related products for passenger vehicles, commercial trucks, aircraft, motorcycles, agricultural equipment and off-road vehicles.

Goodyear serves consumer, commercial and original-equipment customers through a portfolio that includes Goodyear and other regional and market-specific brands. Its offerings include replacement tires, tires supplied to vehicle manufacturers, retreading products and related solutions designed to support vehicle performance, safety and efficiency.

In addition to manufacturing, Goodyear operates tire and automotive service locations and provides fleet-management, maintenance and other mobility-related services for commercial customers.

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