Gates Industrial (NYSE:GTES) Hits New 52-Week High After Better-Than-Expected Earnings

Gates Industrial Corporation PLC (NYSE:GTES)’s stock price reached a new 52-week high during trading on Thursday following a better than expected earnings announcement. The company traded as high as $27.38 and last traded at $26.5810, with a volume of 3947098 shares changing hands. The stock had previously closed at $26.76.

The company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.37 by $0.01. Gates Industrial had a net margin of 6.93% and a return on equity of 10.38%. During the same quarter last year, the business posted $0.36 EPS. The company’s revenue for the quarter was up 3.2% on a year-over-year basis. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS.

Analyst Upgrades and Downgrades

GTES has been the topic of a number of recent analyst reports. Wells Fargo & Company began coverage on shares of Gates Industrial in a research report on Thursday, November 13th. They issued an “equal weight” rating and a $23.00 price target on the stock. Wall Street Zen cut Gates Industrial from a “strong-buy” rating to a “buy” rating in a research report on Saturday, January 10th. Weiss Ratings restated a “hold (c+)” rating on shares of Gates Industrial in a research note on Monday, December 29th. Citigroup reissued a “buy” rating on shares of Gates Industrial in a report on Monday, January 12th. Finally, Royal Bank Of Canada decreased their target price on Gates Industrial from $29.00 to $26.00 and set an “outperform” rating on the stock in a report on Thursday, October 30th. Six investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $27.09.

Hedge Funds Weigh In On Gates Industrial

Several institutional investors and hedge funds have recently made changes to their positions in GTES. Vanguard Group Inc. raised its stake in Gates Industrial by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 26,753,365 shares of the company’s stock worth $664,019,000 after buying an additional 1,281,339 shares during the period. Allspring Global Investments Holdings LLC grew its stake in Gates Industrial by 5.3% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 14,169,457 shares of the company’s stock valued at $312,578,000 after acquiring an additional 717,353 shares during the period. Dimensional Fund Advisors LP increased its holdings in shares of Gates Industrial by 0.3% in the third quarter. Dimensional Fund Advisors LP now owns 10,850,516 shares of the company’s stock worth $269,308,000 after acquiring an additional 28,760 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of Gates Industrial by 98.7% during the 4th quarter. JPMorgan Chase & Co. now owns 8,373,294 shares of the company’s stock valued at $179,775,000 after purchasing an additional 4,158,341 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of Gates Industrial by 3.0% during the 3rd quarter. Invesco Ltd. now owns 7,861,494 shares of the company’s stock valued at $195,122,000 after purchasing an additional 226,075 shares in the last quarter. Institutional investors and hedge funds own 98.50% of the company’s stock.

Gates Industrial Price Performance

The company has a 50-day moving average of $22.86 and a 200-day moving average of $23.80. The company has a debt-to-equity ratio of 0.61, a quick ratio of 2.50 and a current ratio of 3.52. The firm has a market capitalization of $6.87 billion, a price-to-earnings ratio of 29.21 and a beta of 1.27.

About Gates Industrial

Gates Industrial Corporation PLC (NYSE: GTES) is a leading global manufacturer of engineered power transmission belts and fluid power products. The company’s portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.