Goodyear Tire stock moves higher amid activist investor campaign

The Yahoo Finance Live team discusses a rise in stock for the Goodyear Tire & Rubber Company while Elliott Management pushes for significant changes at the company.

Video transcript

- All right, let's take a look at Goodyear Tire and Rubber Company. You're looking at gains of just about 21% after activist investor, Elliott Management, launching a new campaign against the storied tire maker, citing poor margin performance versus rivals. Also, weak board oversight of management and ill timed tire distributions big deals.

Now, Elliott is pushing for a sale or other action on Goodyear's 1,000 plus retail stores. And you can see, obviously investors a little bit encouraged by this. Looking for a bit of a turnaround here from the company, shares jumping today over 20%, Akiko.

- Yeah, Shawna. And when you talk about the list of things that Elliott says needs to change, they believe that could bring the stock up to $32 a share. You look at where it's trading today. That's more than double. So certainly, they see some significant upside. Elliott, of course, no stranger to some of these headlines in terms of targeting companies.

A few things I think to note-- I mean, they've got 10% stake in the company, so they are one of the largest shareholders. And they believe, to your point, that the company simply has been mismanaged. Right now, they want five additional directors on the board. We'll see if the company actually moves in that direction.