The Goodyear Tire & Rubber Company (NASDAQ:GT) recently claimed $5.08B as the price has approached $21.52. There came a -0.14% decline with the closing bell on Thursday. The stock remained range bound between $21.16 and $21.805. Trading activity significantly improved as the volume at ready counter increased to 4,523,674 shares versus 3,484,500 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 4,637,643 shares. The stock is now 14.59% above against its bear-market low of $18.78 on December 26, 2018. It has retreated -67.61% since it’s 52-week high of $36.07 reached in January. Now the market price is down -36.5% on the year and up 5.44% YTD.
GT’s 50 day simple moving average (SMA 50) price is $21.67 and its 200-day simple moving average (SMA 200) price is $23.58. The company’s stock currently has a total float of 232.24M shares. Its weekly volatility is hovering around 3.59% and felt 3.96% volatility in price over a month. On the upside, the share price will test short term resistance at around $21.83. On a downside, the stock is likely to find some support, which begins at $21.18. The failure to get near-term support could push it to $20.85.
Separately, it has been reported that multiple insider activity took place at The Goodyear Tire & Rubber Company (GT). Senior Vice President Kihn Jean Claude sold 7,500 shares for $51,990 in transaction occurred on 2017/12/01. After making this transaction, the Senior Vice President owns a direct stake of 240,900 shares, worth $1,118,825, as per the last closing price. On 2017/11/01 Kihn Jean Claude, Senior Vice President at GT, dumped 7,500 shares at an average price of $30.53 per share. The selling total is valued at $1,306,608.
Senior Vice President, Kihn Jean Claude had divested 7,500 shares for $68,211 through a trade on 2017/10/02. Following this activity, the insider holds 249,450 shares worth $1,467,901 as of recent close. Wall Street’s most bullish The Goodyear Tire & Rubber Company (NASDAQ:GT) analysts are predicting the share price to blow past $31 per share during the next 12 months. The current median share price forecast by them is $25, suggesting that the stock could increase 16.17% in that time frame. The average price target of $25.25 calls for a nearly 17.33% increase in the stock price.
It had seen a new analyst call from Wolfe Research, which initiated the stock at Outperform on October 02. Analysts at Berenberg, shed their positive views on August 31 by lowering it fromBuy to Hold. The stock lost favor of Morgan Stanley analysts who expressed their lack of confidence in it using a downgrade from Overweight to Equal-Weight on August 13. Goldman analysts came out with bearish views on July 17 when the call was made. They think the stock is now Sell compared to to their prior call for Neutral.
When looking at valuations, The Goodyear Tire & Rubber Company (GT) has a cheap P/E of 6.5x as compared to industry average of 25.94x. Moreover, it trades for 7.27 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.06x price/book and 0.32x price/sales. Compared to others, The Goodyear Tire & Rubber Company is in a different league with regards to profitability, having net margins of 3.1%. To put some perspective around this, the industry’s average net margin is 4.66%. GT’s ROE is 10.4%, which is also considerably better than the industry’s ROE of 7.74%. It’s also very liquid in the near term, with a current ratio of 1.3. The stock has a debt/capital of 1.36.
Shares of The Goodyear Tire & Rubber Company (GT) have gained 4.8% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, The Goodyear Tire & Rubber Company (NASDAQ:GT) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 2 quarters (16%), whereas at 0 occasion EPS met analyst expectations. GT last reported earnings on October 26, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.68 per share, -92.65% change on the same period last year. That was worse than consensus for $0.75. Revenue for the recent quarter stood at $3.93 billion, down 0% on last year and below the $3.94 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $3.73 billion to $4.14 billion, which should be compared with $0 generated last year. EPS is seen in a range of $0.53 to $0.83, against the $1.07 reported a year ago.