Zacks Investment Research downgraded shares of Goodyear Tire & Rubber (NASDAQ:GT) from a strong-buy rating to a hold rating in a research report sent to investors on Tuesday, Zacks.com reports. Zacks Investment Research currently has $23.00 price target on the stock.
According to Zacks, “Goodyear’s acquisition of Cooper Tire strengthens the firm's leadership position in the global tire industry. Buyout of Raben Tire and TireHub joint venture with Bridgestone bodes well for Goodyear’s long-term prospects. The firm's new capital venture fund, Goodyear Ventures, which intends to advance future mobility solutions over the next decade, buoys its future prospects. However, surging raw material costs and high R&D expenses are likely to clip Goodyear’s margins. Rising competition and unfavorable forex translations are other headwinds. The company also anticipates to be impacted by non-cash costs in the upcoming quarters triggered by the merger with Cooper Tire. Elevated leverage is also a concern. As such, the stock warrants a cautious stance.”
Several other equities research analysts also recently commented on the stock. Deutsche Bank Aktiengesellschaft upgraded shares of Goodyear Tire & Rubber from a hold rating to a buy rating and lifted their price objective for the stock from $29.00 to $32.00 in a research note on Tuesday, December 7th. Morgan Stanley boosted their target price on shares of Goodyear Tire & Rubber from $16.00 to $23.00 and gave the company an equal weight rating in a research report on Wednesday, November 10th. Two analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of Buy and an average price target of $22.00.
Goodyear Tire & Rubber (NASDAQ:GT) last posted its quarterly earnings data on Friday, November 5th. The company reported $0.72 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.26 by $0.46. Goodyear Tire & Rubber had a net margin of 1.70% and a return on equity of 12.68%. The business had revenue of $4.93 billion during the quarter, compared to the consensus estimate of $4.66 billion. During the same period in the previous year, the firm posted $0.10 earnings per share. The business’s revenue for the quarter was up 42.4% compared to the same quarter last year. Equities analysts forecast that Goodyear Tire & Rubber will post 1.85 EPS for the current year.
In other Goodyear Tire & Rubber news, CEO Richard J. Kramer sold 175,197 shares of Goodyear Tire & Rubber stock in a transaction on Wednesday, December 8th. The shares were sold at an average price of $22.33, for a total value of $3,912,149.01. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Stephen R. Mcclellan sold 36,177 shares of Goodyear Tire & Rubber stock in a transaction on Wednesday, November 10th. The shares were sold at an average price of $23.36, for a total transaction of $845,094.72. The disclosure for this sale can be found here. Insiders have sold 265,676 shares of company stock valued at $5,945,371 over the last 90 days. 1.60% of the stock is currently owned by insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Louisiana State Employees Retirement System increased its holdings in Goodyear Tire & Rubber by 0.7% in the fourth quarter. Louisiana State Employees Retirement System now owns 72,200 shares of the company’s stock valued at $1,539,000 after buying an additional 500 shares in the last quarter. Koshinski Asset Management Inc. purchased a new stake in shares of Goodyear Tire & Rubber during the fourth quarter worth about $52,000. Diversified Trust Co increased its stake in shares of Goodyear Tire & Rubber by 39.9% during the fourth quarter. Diversified Trust Co now owns 42,978 shares of the company’s stock worth $916,000 after purchasing an additional 12,247 shares in the last quarter. Hudson Bay Capital Management LP purchased a new stake in shares of Goodyear Tire & Rubber during the third quarter worth about $4,425,000. Finally, UBS Asset Management Americas Inc. increased its stake in shares of Goodyear Tire & Rubber by 4.8% during the third quarter. UBS Asset Management Americas Inc. now owns 459,265 shares of the company’s stock worth $8,129,000 after purchasing an additional 21,015 shares in the last quarter. 82.18% of the stock is owned by institutional investors.
Goodyear Tire & Rubber Company Profile
Goodyear Tire & Rubber Co engages in the development, manufactures, distribution, and sale of tires. Its products include lines of rubber tires for automobiles, trucks, buses, aircraft, motorcycles, farm implements, earthmoving and mining equipment, industrial equipment and various other applications.
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