Zacks Investment Research Downgrades The Goodyear Tire & Rubber Company (NASDAQ:GT) to Sell

The Goodyear Tire & Rubber Company (NASDAQ:GT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday, July 11th.

According to Zacks, “Goodyear’s current quarter and full year earnings estimates have declined lately. The company anticipates its 2017 operating income to be adversely affected by weak demand and high raw material costs. In fact, Goodyear’s revenue has shown a downward trend in the last six years. The company also faces challenges in Latin America on account of volatile political and economic environment, lower production volume in Venezuela and Brazil, and high currency fluctuations. Also, the recession in Brazil is expected to adversely impact the future operating income from the region. Goodyear also encounters pricing pressure from OEMs.”

Several other equities research analysts also recently issued reports on GT. Guggenheim started coverage on The Goodyear Tire & Rubber in a research report on Wednesday, June 21st. They set a “buy” rating and a $39.00 target price on the stock. Jefferies Group LLC upgraded The Goodyear Tire & Rubber from a “hold” rating to a “buy” rating and set a $39.00 target price on the stock in a research report on Tuesday, June 20th. CLSA assumed coverage on The Goodyear Tire & Rubber in a research report on Wednesday, June 21st. They set a “buy” rating and a $39.00 target price on the stock. Citigroup Inc. increased their price objective on The Goodyear Tire & Rubber from $36.00 to $41.00 and gave the stock a “buy” rating in a research report on Friday, April 7th. Finally, Morgan Stanley upgraded The Goodyear Tire & Rubber from an “underweight” rating to an “overweight” rating in a research report on Thursday, June 1st. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and seven have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average target price of $38.10.

Shares of The Goodyear Tire & Rubber (NASDAQ:GT) opened at 30.27 on Tuesday. The firm has a market cap of $7.62 billion, a P/E ratio of 6.59 and a beta of 1.53. The Goodyear Tire & Rubber has a 52-week low of $26.82 and a 52-week high of $37.20. The stock’s 50 day moving average is $34.08 and its 200-day moving average is $34.47.

The Goodyear Tire & Rubber (NASDAQ:GT) last issued its quarterly earnings data on Friday, July 28th. The company reported $0.70 EPS for the quarter, missing analysts’ consensus estimates of $0.75 by $0.05. The company had revenue of $3.69 billion for the quarter, compared to the consensus estimate of $3.70 billion. The Goodyear Tire & Rubber had a return on equity of 18.94% and a net margin of 7.95%. The business’s revenue for the quarter was down 5.0% on a year-over-year basis. During the same period in the prior year, the firm posted $1.16 earnings per share. Equities analysts anticipate that The Goodyear Tire & Rubber will post $3.11 earnings per share for the current fiscal year.

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In related news, insider Stephen R. Mcclellan sold 6,250 shares of the firm’s stock in a transaction dated Monday, July 10th. The stock was sold at an average price of $35.46, for a total value of $221,625.00. Following the sale, the insider now directly owns 71,849 shares of the company’s stock, valued at $2,547,765.54. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.40% of the stock is owned by company insiders.

A number of hedge funds have recently modified their holdings of GT. Pioneer Investment Management Inc. raised its position in The Goodyear Tire & Rubber by 0.7% in the first quarter. Pioneer Investment Management Inc. now owns 1,448,785 shares of the company’s stock valued at $52,156,000 after buying an additional 10,572 shares during the last quarter. British Columbia Investment Management Corp raised its position in The Goodyear Tire & Rubber by 60.2% in the first quarter. British Columbia Investment Management Corp now owns 272,679 shares of the company’s stock valued at $9,816,000 after buying an additional 102,488 shares during the last quarter. Parkwood LLC raised its position in The Goodyear Tire & Rubber by 19.2% in the first quarter. Parkwood LLC now owns 23,982 shares of the company’s stock valued at $863,000 after buying an additional 3,860 shares during the last quarter. Summit Securities Group LLC raised its position in The Goodyear Tire & Rubber by 890.9% in the first quarter. Summit Securities Group LLC now owns 95,428 shares of the company’s stock valued at $3,435,000 after buying an additional 85,798 shares during the last quarter. Finally, Mutual of America Capital Management LLC raised its position in The Goodyear Tire & Rubber by 19.7% in the first quarter. Mutual of America Capital Management LLC now owns 33,711 shares of the company’s stock valued at $1,214,000 after buying an additional 5,539 shares during the last quarter. Institutional investors and hedge funds own 92.91% of the company’s stock.

About The Goodyear Tire & Rubber

The Goodyear Tire & Rubber Company is a manufacturer of tires. The Company operates through three segments. The Americas segment develops, manufactures, distributes and sells tires and related products and services in North, Central and South America, and sells tires to various export markets. The Americas segment manufactures and sells tires for automobiles, trucks, buses, earthmoving, mining and industrial equipment, aircraft and for various other applications.

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