Gates Industrial (NYSE:GTES) Cut to “Buy” at Wall Street Zen

Wall Street Zen cut shares of Gates Industrial (NYSE:GTES) from a strong-buy rating to a buy rating in a research report sent to investors on Saturday morning,Wall Street Zen reports.

GTES has been the topic of several other reports. JPMorgan Chase & Co. lifted their target price on Gates Industrial from $32.00 to $34.00 and gave the company an “overweight” rating in a research note on Monday, August 3rd. KeyCorp upped their price target on Gates Industrial from $31.00 to $34.00 and gave the stock an “overweight” rating in a research note on Monday, August 3rd. Royal Bank Of Canada upped their price target on Gates Industrial from $33.00 to $34.00 and gave the stock an “outperform” rating in a research note on Monday, August 3rd. Wolfe Research reaffirmed an “outperform” rating and set a $33.00 price target on shares of Gates Industrial in a report on Thursday, July 9th. Finally, Wells Fargo & Company lifted their price objective on shares of Gates Industrial from $26.00 to $30.00 and gave the company an “equal weight” rating in a research report on Monday, August 3rd. Nine research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Gates Industrial has an average rating of “Moderate Buy” and a consensus price target of $32.45.

Gates Industrial Stock Performance

NYSE GTES opened at $26.20 on Friday. The company has a quick ratio of 2.36, a current ratio of 3.24 and a debt-to-equity ratio of 0.58. Gates Industrial has a 52-week low of $20.88 and a 52-week high of $30.34. The business’s 50-day moving average price is $26.65 and its 200 day moving average price is $26.08. The firm has a market cap of $6.63 billion, a P/E ratio of 18.58 and a beta of 1.28.

Gates Industrial (NYSE:GTES) last issued its quarterly earnings results on Friday, July 31st. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.02. The firm had revenue of $941.60 million for the quarter, compared to analysts’ expectations of $927.28 million. Gates Industrial had a return on equity of 10.11% and a net margin of 10.37%. The firm’s revenue for the quarter was up 6.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.39 EPS. Gates Industrial has set its FY 2026 guidance at 1.620-1.700 EPS. On average, equities research analysts expect that Gates Industrial will post 1.57 earnings per share for the current year.

Insider Transactions at Gates Industrial

In related news, Director Peifang Zhang sold 6,000 shares of the company’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $29.56, for a total transaction of $177,360.00. Following the transaction, the director owned 44,044 shares of the company’s stock, valued at $1,301,940.64. This represents a 11.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 2.80% of the company’s stock.

Institutional Investors Weigh In On Gates Industrial

A number of hedge funds and other institutional investors have recently bought and sold shares of GTES. Arrowstreet Capital Limited Partnership boosted its position in shares of Gates Industrial by 62.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,251,585 shares of the company’s stock worth $50,908,000 after buying an additional 868,734 shares in the last quarter. Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in Gates Industrial in the 2nd quarter valued at about $21,142,000. Dimensional Fund Advisors LP grew its stake in Gates Industrial by 2.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 11,546,581 shares of the company’s stock valued at $261,040,000 after acquiring an additional 295,706 shares during the last quarter. Bank of America Corp DE grew its stake in Gates Industrial by 13.7% in the 1st quarter. Bank of America Corp DE now owns 1,920,689 shares of the company’s stock valued at $43,427,000 after acquiring an additional 230,836 shares during the last quarter. Finally, Quantinno Capital Management LP increased its holdings in Gates Industrial by 12.3% during the 1st quarter. Quantinno Capital Management LP now owns 2,101,565 shares of the company’s stock valued at $47,516,000 after acquiring an additional 230,147 shares in the last quarter. Institutional investors and hedge funds own 98.50% of the company’s stock.

About Gates Industrial

Gates Industrial Corporation plc (NYSE: GTES) is a global manufacturer of engineered power transmission and fluid power products. The company develops and supplies belts, hoses, hydraulic components, and related systems used to transfer power, control motion, and manage the flow of fluids in industrial and mobile equipment.

Its products serve a broad range of markets, including automotive and industrial aftermarket, construction, agriculture, energy, manufacturing, transportation, and other applications requiring durable motion and fluid-management solutions.