Goodyear rally after disclosing Elliott Management activist stake 🏎 Changes are coming?

5:35 PM 11 May 2023

Tire maker and legendary motorsports-related company, Goodyear (GT.US) is trading up nearly 20% today as activist investor, Elliott Management fund has taken a 10% stake in it and is pushing for strategic changes in the business. The fund has expressed confidence that the tire maker's price could rise as high as $32 a share if the company meets the activist investor's expectations. The Goodyear brand is associated with the growth of motorsports, including F1, NASCAR and the LeMans race, whose 100th edition will take place this year, coinciding with the 125th anniversary of Goodyear's founding.

  • Elliott Management is pushing the company to strengthen its financial position by, among other things, selling stores (close to 1,000), embarking on a broader review of its operations and changing its existing management, filling director positions with people selected by the fund.

A slide from Elliott Management's presentation to Goodyear. (Elliott)

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

Slide from Elliott Management's presentation about Goodyear. Source: Elliott Managemnt 

Despite its long history in recent years, Goodyear hasn't posted satisfactory profits and has fallen behind Michelin or Bridgestone making sentiment around the stock extremely negative. Elliott expressed confidence that after the changes, company will be able to beat the competition in the coming decades. With retail services and planned margin improvements. Elliott also cited weaknesses in the existing management and misguided sales deals.

  • Elliott wants to put five experienced directors on Goodyear's board and has become one of the largest shareholders in the company
  • According to the fund's publicized report, by selling stores the company could pay down debt, improve its balance sheet and overall financial capabilities
  • The fund manages $55 billion and historically its appointed members have held senior positions at companies such as eBay and Twitter;

Elliott believes that once the changes are implemented, Goodyear could increase its share price by more than 100%, to more than $30 per share.Goodyear (GT.US) shares opened today with a huge bullish gap, with the price overcoming key resistance in the form of the SMA200 (red line), on D1 interval Source: xStation5

Share:
Back

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol Expiration date 25 October 2024
test_cookie Expiration date 24 October 2024
adobe_unique_id Expiration date 24 October 2025
__hssc Expiration date 24 October 2024
SESSID Expiration date 2 March 2024
__cf_bm Expiration date 24 October 2024
intercom-id-iojaybix Expiration date 21 July 2025
intercom-session-iojaybix Expiration date 31 October 2024
xtbCookiesSettings Expiration date 24 October 2025
TS5b68a4e1027
countryIsoCode
xtbLanguageSettings Expiration date 24 October 2025
userPreviousBranchSymbol Expiration date 24 October 2025
TS5b68a4e1027
intercom-device-id-iojaybix Expiration date 21 July 2025
__cf_bm Expiration date 24 October 2024
__cfruid
__cfruid
__cf_bm Expiration date 24 October 2024
__cf_bm Expiration date 24 October 2024
_cfuvid
adobe_unique_id Expiration date 24 October 2025
_cfuvid
TS5b68a4e1027
xtbCookiesSettings Expiration date 24 October 2025
SERVERID
TS5b68a4e1027
__hssc Expiration date 24 October 2024
test_cookie Expiration date 1 March 2024
__cf_bm Expiration date 24 October 2024
_cfuvid
_cfuvid
__cf_bm Expiration date 24 October 2024
__cf_bm Expiration date 24 October 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid Expiration date 9 September 2022
_gat_UA-98728395-1 Expiration date 8 September 2022
_gat_UA-121192761-1 Expiration date 8 September 2022
_gcl_au Expiration date 22 January 2025
_ga_CBPL72L2EC Expiration date 24 October 2026
_ga Expiration date 24 October 2026
__hstc Expiration date 22 April 2025
__hssrc
_vwo_uuid_v2 Expiration date 25 October 2025
_ga_TC79BEJ20L Expiration date 24 October 2026
_vwo_uuid Expiration date 16 October 2025
_vwo_ds Expiration date 15 November 2024
_vwo_sn Expiration date 16 October 2024
_vis_opt_s Expiration date 24 January 2025
_vis_opt_test_cookie
af_id Expiration date 23 February 2025
afUserId Expiration date 25 January 2026
af_id Expiration date 24 January 2026
AF_SYNC Expiration date 1 February 2024
_ga Expiration date 24 October 2026
_gid Expiration date 25 October 2024
_ga_CBPL72L2EC Expiration date 24 October 2026
__hstc Expiration date 22 April 2025
__hssrc
_ga_TC79BEJ20L Expiration date 24 October 2026
_gcl_au Expiration date 22 January 2025
AnalyticsSyncHistory Expiration date 31 March 2024

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID Expiration date 18 November 2025
_omappvp Expiration date 6 October 2035
_omappvs Expiration date 24 October 2024
_uetsid Expiration date 25 October 2024
_uetvid Expiration date 18 November 2025
_fbp Expiration date 22 January 2025
fr Expiration date 7 December 2022
_ttp Expiration date 22 January 2025
_tt_enable_cookie Expiration date 22 January 2025
_ttp Expiration date 22 January 2025
hubspotutk Expiration date 22 April 2025
IDE Expiration date 10 November 2025
YSC
VISITOR_INFO1_LIVE Expiration date 22 April 2025
hubspotutk Expiration date 22 April 2025
_omappvp Expiration date 11 February 2035
_omappvs Expiration date 1 March 2024
_uetsid Expiration date 25 October 2024
_uetvid Expiration date 18 November 2025
_ttp Expiration date 22 January 2025
MUID Expiration date 18 November 2025
_fbp Expiration date 22 January 2025
_tt_enable_cookie Expiration date 22 January 2025
_ttp Expiration date 22 January 2025
li_sugr Expiration date 30 May 2024
guest_id_marketing Expiration date 24 October 2026
guest_id_ads Expiration date 24 October 2026
guest_id Expiration date 24 October 2026
muc_ads Expiration date 24 October 2026
VISITOR_PRIVACY_METADATA Expiration date 22 April 2025
MSPTC Expiration date 18 November 2025
IDE Expiration date 18 November 2025
MSPTC Expiration date 18 November 2025

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
bcookie Expiration date 24 October 2025
lidc Expiration date 25 October 2024
UserMatchHistory Expiration date 31 March 2024
bscookie Expiration date 1 March 2025
li_gc Expiration date 22 April 2025
bcookie Expiration date 24 October 2025
li_gc Expiration date 22 April 2025
lidc Expiration date 25 October 2024
personalization_id Expiration date 24 October 2026

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language