Goodyear Tire & Rubber (NASDAQ:GT) Shares Gap Up on Better-Than-Expected Earnings

The Goodyear Tire & Rubber Company (NASDAQ:GT - Get Free Report)'s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $8.17, but opened at $8.92. Goodyear Tire & Rubber shares last traded at $9.65, with a volume of 6,474,275 shares traded.

The company reported $0.39 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.10. Goodyear Tire & Rubber had a negative net margin of 1.56% and a positive return on equity of 6.66%. The business had revenue of $4.95 billion during the quarter, compared to the consensus estimate of $4.91 billion.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on GT. Argus upgraded shares of Goodyear Tire & Rubber from a "hold" rating to a "buy" rating and set a $12.00 target price for the company in a research note on Tuesday. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $10.00 price objective on shares of Goodyear Tire & Rubber in a research report on Friday, December 20th. Finally, StockNews.com raised Goodyear Tire & Rubber from a "hold" rating to a "buy" rating in a research report on Monday. Three investment analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat.com, Goodyear Tire & Rubber presently has a consensus rating of "Moderate Buy" and an average price target of $12.98.

Hedge Funds Weigh In On Goodyear Tire & Rubber

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in GT. Victory Capital Management Inc. lifted its stake in Goodyear Tire & Rubber by 3,921.7% during the 3rd quarter. Victory Capital Management Inc. now owns 4,751,514 shares of the company's stock valued at $42,051,000 after acquiring an additional 4,633,368 shares during the period. Norges Bank purchased a new position in shares of Goodyear Tire & Rubber during the fourth quarter worth $39,626,000. Maple Rock Capital Partners Inc. acquired a new position in Goodyear Tire & Rubber during the fourth quarter valued at $16,875,000. Atlantic Investment Management Inc. purchased a new stake in Goodyear Tire & Rubber in the fourth quarter valued at $11,803,000. Finally, American Century Companies Inc. grew its position in Goodyear Tire & Rubber by 10.3% during the 4th quarter. American Century Companies Inc. now owns 9,652,329 shares of the company's stock worth $86,871,000 after purchasing an additional 897,463 shares during the period. Hedge funds and other institutional investors own 84.19% of the company's stock.

Goodyear Tire & Rubber Price Performance

The firm has a market cap of $2.95 billion, a PE ratio of -9.94 and a beta of 1.79. The stock has a 50 day simple moving average of $9.02 and a two-hundred day simple moving average of $8.85. The company has a debt-to-equity ratio of 1.51, a quick ratio of 0.65 and a current ratio of 1.14.

About Goodyear Tire & Rubber

Goodyear Tire & Rubber Co engages in the development, manufacture, distribution, and sale of tires. It operates through the following geographical segments: Americas, Europe, Middle East, and Africa, and Asia Pacific. The Americas segment is involved in the development, manufacture, distribution, and sale of tires and related products and services in North, Central, and South America.