Goodyear stock skyrockets in wake of Elliott letter

Goodyear stock shot up ~30 per cent following an explosive letter recommending radical change at the tyremaker from 10-per-cent-shareholder Elliott Investment Management. At the time of going to press, Goodyear Tire & Rubber Co. shares were up trading at $14.81, up 30 per cent compared with five days ago, with most of that coming on 11 May 2023 when the shareholder letter was published.

Not only is the share price currently up 30 per cent, the price was still rising after trading opened in the US on 12 May. Current levels equate to a year-to-date increase of around 44 per cent and are nearing the one-year high of $15.19. The price would have to exceed $25 to break through the five-year high.

Yesterday Goodyear executives said they were “reviewing Elliott’s recommendations” one of which was that Goodyear has suffered a significant loss of investor confidence. Judging by the skyrocketing share price, the markets are in favour of wide-ranging changes at Goodyear.