Goodyear Tire & Rubber (NASDAQ:GT) Trading Up 6.9% - Time to Buy?

Key Points

• Goodyear shares rose 6.9% to about $5.37, although trading volume was roughly 80% below the average session volume.
• Analyst sentiment remains mixed, with two Buy, three Hold and two Sell ratings; the consensus is Hold with an average price target of $8.26, including JPMorgan’s $10 target.
• Goodyear exceeded quarterly revenue and adjusted EPS expectations, but revenue fell 4.8% year over year and the company reported a $0.61 loss per share, negative margins and elevated leverage.

Shares of The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report) rose 6.9% on Tuesday . The company traded as high as $5.26 and last traded at $5.3650. Approximately 1,712,234 shares changed hands during trading, a decline of 80% from the average session volume of 8,714,777 shares. The stock had previously closed at $5.02.

Wall Street Analyst Weigh In

A number of research firms have recently commented on GT. Weiss Ratings restated a "sell (d)" rating on shares of Goodyear Tire & Rubber in a research note on Friday, August 7th. Zacks Research upgraded Goodyear Tire & Rubber from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. JPMorgan Chase & Co. raised their price objective on Goodyear Tire & Rubber from $9.00 to $10.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Finally, Wall Street Zen upgraded shares of Goodyear Tire & Rubber from a "strong sell" rating to a "sell" rating in a report on Saturday, August 8th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $8.26.

Goodyear Tire & Rubber Stock Up 6.3%

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 company's fifty day moving average price is $6.32 and its 200-day moving average price is $6.45. The stock has a market capitalization of $1.54 billion, a PE ratio of -0.60 and a beta of 1.10.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.61) earnings per share for the quarter, topping the consensus estimate of ($0.63) by $0.02. The company had revenue of $4.25 billion for the quarter, compared to the consensus estimate of $4.19 billion. Goodyear Tire & Rubber had a negative return on equity of 2.95% and a negative net margin of 14.37%.The firm's quarterly 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. Analysts forecast that The Goodyear Tire & Rubber Company will post -0.43 earnings per share for the current year.

Hedge Funds Weigh In On Goodyear Tire & Rubber

Several large investors have recently modified their holdings of the stock. Nykredit A S purchased a new stake in Goodyear Tire & Rubber during the 2nd quarter valued at about $27,000. Allworth Financial LP bought a new position in shares of Goodyear Tire & Rubber in the second quarter worth approximately $33,000. EverSource Wealth Advisors LLC grew its holdings in shares of Goodyear Tire & Rubber by 656.0% during the first quarter. EverSource Wealth Advisors LLC now owns 6,048 shares of the company's stock valued at $40,000 after buying an additional 5,248 shares during the last quarter. Magnolia Capital Advisors LLC bought a new stake in shares of Goodyear Tire & Rubber during the second quarter valued at approximately $67,000. Finally, Sovereign Financial Group Inc. bought a new stake in shares of Goodyear Tire & Rubber during the first quarter valued at approximately $70,000. Hedge funds and other institutional investors own 84.19% of the company's stock.

About Goodyear Tire & Rubber

Goodyear Tire & Rubber Company develops, manufactures, markets and distributes tires and related products and services. Its portfolio includes tires for passenger cars, SUVs, trucks, buses, commercial fleets, aircraft, mining and other off-the-road applications. The company serves both original-equipment manufacturers and replacement-tire customers.

Goodyear markets products primarily under the Goodyear brand, along with other brands and private-label offerings. Its business also includes tire-related services, fleet support, vehicle maintenance and mobility solutions designed to help commercial customers manage their transportation operations.

Founded in 1898 and headquartered in Akron, Ohio, Goodyear has built a global presence through manufacturing, distribution, retail and service operations.

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