AKRON — The price of a Goodyear share jumped 21% in heavy trading on May 11 following a call by a key investor to Goodyear management to make certain operational changes to enhance the firm's profitability.
The share price jump and high trading volume on May 11 followed the publication early in the day of a document by Elliott Investment Management L.P. calling for Goodyear management to take steps to "reverse a period of negative performance" and hopefully restore value to the company's stock.
Company shares were trading at $14.23 at the close of business on May 11, up from an opening price of $11.72 per share. There were 35.5 million shares traded on May 11, roughly eight times the normal daily volume.
The share price on May 12 closed at $14.67 after opening at $14.15. Trading was brisk at 12.1 million shares.
Even at $14.70, the share price hasn't reached the 52-week high of $15.69 recorded Aug. 15, 2022. The price fell to a low of $9.66 on Dec. 28.
West Palm Beach, Fla.-based Elliott Investment Management L.P. sent a letter to Goodyear CEO Richard Kramer and the company's board of directors detailing reasons for what it called the tire maker's poor stock performance while outlining steps it said the company should take to "reverse a period of negative performance."
