Goodyear Tire & Rubber (NASDAQ:GT) Trading 4.8% Higher - Should You Buy?

Key Points

• Goodyear shares rose 4.8% to roughly $6.50, although trading volume was 68% below the average daily level.
• Analysts remain cautious, with a consensus “Hold” rating and an average price target of $8.26; ratings range from “Sell” to “Overweight.”
• The company exceeded quarterly revenue and EPS expectations, but revenue fell 4.8% year over year and Goodyear reported a negative net margin and return on equity. Institutional investors own 84.19% of the stock.

Shares of The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report) were up 4.8% on Wednesday . The company traded as high as $6.45 and last traded at $6.4950. 2,718,926 shares traded hands during trading, a decline of 68% from the average daily volume of 8,613,085 shares. The stock had previously closed at $6.20.

Analyst Upgrades and Downgrades

GT has been the subject of several research reports. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Goodyear Tire & Rubber in a report on Friday, August 7th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $7.00 price objective (down from $9.00) on shares of Goodyear Tire & Rubber in a report on Monday, May 11th. Wall Street Zen upgraded shares of Goodyear Tire & Rubber from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 8th. Citigroup cut their target price on shares of Goodyear Tire & Rubber from $10.00 to $8.00 and set a "neutral" rating for the company in a research note on Friday, May 8th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Goodyear Tire & Rubber from $9.00 to $10.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Goodyear Tire & Rubber has a consensus rating of "Hold" and an average target price of $8.26.

Goodyear Tire & Rubber Price Performance

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 50 day moving average of $6.60 and a 200-day moving average of $6.90. The firm has a market capitalization of $1.86 billion, a P/E ratio of -0.73 and a beta of 1.12.

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. 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 quarter last year, the firm earned ($0.17) earnings per share. The company's revenue was down 4.8% on a year-over-year basis. On average, sell-side analysts predict that The Goodyear Tire & Rubber Company will post -0.43 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in Goodyear Tire & Rubber during the second quarter worth about $238,776,000. Canada Pension Plan Investment Board acquired a new position in shares of Goodyear Tire & Rubber in the 2nd quarter valued at approximately $78,278,000. AQR Capital Management LLC raised its position in shares of Goodyear Tire & Rubber by 151.8% in the 4th quarter. AQR Capital Management LLC now owns 9,764,853 shares of the company's stock valued at $85,540,000 after buying an additional 5,886,935 shares in the last quarter. Cibc World Market Inc. bought a new stake in shares of Goodyear Tire & Rubber during the 2nd quarter worth approximately $18,676,000. Finally, Wellington Management Group LLP lifted its holdings in shares of Goodyear Tire & Rubber by 11.9% during the 3rd quarter. Wellington Management Group LLP now owns 26,381,396 shares of the company's stock worth $197,333,000 after acquiring an additional 2,796,332 shares during the period. 84.19% of the stock is owned by institutional investors.

About Goodyear Tire & Rubber

The Goodyear Tire & Rubber Company is a leading tire manufacturer and rubber products supplier with more than a century of innovation in its portfolio. Founded in 1898 by Frank Seiberling in Akron, Ohio, the company has grown into a global enterprise known for its engineering expertise and quality standards. Over its history, Goodyear has pioneered advances in tire technology, from early pneumatic designs to modern high-performance and fuel-efficient solutions.

Goodyear's core business encompasses the design, production and distribution of tires for a variety of markets, including passenger cars, commercial trucks, off-the-road vehicles, aircraft and specialty applications.

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