The Goodyear Tire & Rubber Company (GT): Technical Analysis Suggests You Should Hold

The stock of The Goodyear Tire & Rubber Company (NASDAQ:GT) decreased by decreased by -$0.16 on Friday to finish at $19.81, down -0.80 percent. The last five days have seen an average of 3,798,420 shares of common stock traded. 22 times new highs were reached in the current year, with a gain of $8.90. The average number of shares traded over the last 20 days was 3,652,545, while the average volume over the last 50 days totaled 3,513,582.

GT stock appreciated 13.33% since last month. On 09/23/21, the company’s shares reached a one-month low of $16.87. The stock touched a high of $20.70 on 06/02/21, after rallying from a low of $8.18 in 52 weeks. The price of GT stock has risen by 81.58% or $8.90 this year, reaching a new high 22 times. Still, the stock price is down -4.30% from the 52-week high.


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Insider Transactions

There have been 157 days since The Goodyear Tire & Rubber Company (GT) last reported insider trading activity on May 21. On May 21, President, Americas McClellan Stephen R sold 5,357 shares at $19.44 each. This transaction resulted in the insider making $104,140.

Valuation Metrics

The Goodyear Tire & Rubber Company (GT) has a trailing price-to-earnings (P/E) ratio of 34.04. This level actually compares unfavorably with the industry at large, as the PE for the Auto Parts industry stands at about 20.41. Further, its PE also compares unfavorably with the Consumer Cyclical sector’s trailing 12 months PE ratio, which comes in at 32.04 right now. The PE ratio of The Goodyear Tire & Rubber Company has varied between 34.43 and 5.688 in the last five years. Beta for the stock is 2.05. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.38, the price-to-book (PB) ratio of 1.15, and the price-to-cash flow ratio of 4.70.

The Goodyear Tire & Rubber Company’s dividend is $0.64 per share per year. On Mar. 2, the company paid $0.16 per share in dividends, remained unchanged from $0.16 last year. A $0.02 dividend increase was reported on Tuesday January 15 2019. Over the last three years, dividends have increased by -63.64%.

For the three months ended June 29, The Goodyear Tire & Rubber Company’s quick ratio was 0.60, while its current ratio was 1.10, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 1.66, and the total debt to equity ratio is 1.89. As far as profitability goes, gross margin for the trailing twelve months is 22.00% percent. The Goodyear Tire & Rubber Company’s EBITDA margin for the year ended June 29 was 6.10%, whereas its operating margin stood at 3.60% for the same period. Based on annual data, it had gross profit of $1.98 billion and revenue of $12.32 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. GT’s return on assets (ROA) during the last 12 months has been 0.80%. There was a -10.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 4.20%. ROE has averaged 10.14 in the past year for the broader industry.

Earnings Surprise

According to The Goodyear Tire & Rubber Company’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $3.98 billion, while revenues rose by 46.12% to $3.51 billion. It was predicted that The Goodyear Tire & Rubber Company’s quarterly earnings would be $0.32, but it ended up being $0.18, beating the consensus by 77.80%. EBITDA was $495.0 million for the quarter. At the end of The Goodyear Tire & Rubber Company’s most recent quarter ended June 29, its liabilities totaled 16.77 billion, while its total debt was $6.96 billion. Equity owned by shareholders amounts to $281.19 million.

Technical Picture

Here’s a quick look at The Goodyear Tire & Rubber Company’s (GT) price momentum from a technical perspective. As of 22 October, the RSI 9-day stood at 69.43%, suggesting the stock is Neutral, with a 25.33% historical volatility rate.

The stochastic %K and %D were 85.15% and 83.10% respectively, while the average true range (ATR) was 0.74. Based on the 14-day stochastic reading of 78.68%, the RSI (14) reading is 66.61%. On the 9-day MACD Oscillator, the stock is at 0.67, and the 14-day reading is at 0.84.

Analyst Ratings

The Goodyear Tire & Rubber Company (NASDAQ: GT) was downgraded by Morgan Stanley to a an Equal-weight rating in its latest research report. The stock was previously rated as a an Overweight. Analysts have assigned The Goodyear Tire & Rubber Company (GT) an Overweight rating. GT is a stock that is recommended for selling by 1 brokerage firm, while 4 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 4 others recommend it as a buy.

What is GT’s price target for the next 12 months?

The current consensus forecast for the stock is between $12.00 and $24.00, with a median target price of $20.00. In analyzing these forecasts, the average price target given by analysts for The Goodyear Tire & Rubber Company (GT) is $20.00.

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