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

Wall Street Zen downgraded 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.

Several other research analysts have also commented on GTES. Robert W. Baird lifted their price target on shares of Gates Industrial from $37.00 to $39.00 and gave the company an “outperform” rating in a report on Monday, August 3rd. Wells Fargo & Company raised their target price on shares of Gates Industrial from $26.00 to $30.00 and gave the stock an “equal weight” rating in a report on Monday, August 3rd. Royal Bank Of Canada lifted their target price on Gates Industrial from $33.00 to $34.00 and gave the company an “outperform” rating in a research note on Monday, August 3rd. Wolfe Research reaffirmed an “outperform” rating and set a $33.00 target price on shares of Gates Industrial in a report on Thursday, July 9th. Finally, KeyCorp increased their price target on Gates Industrial from $31.00 to $34.00 and gave the stock an “overweight” rating in a research report on Monday, August 3rd. Nine analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $32.45.

Gates Industrial Price Performance

Shares of NYSE GTES opened at $25.45 on Friday. The company has a current ratio of 3.24, a quick ratio of 2.36 and a debt-to-equity ratio of 0.58. The company has a market capitalization of $6.44 billion, a price-to-earnings ratio of 18.05 and a beta of 1.26. Gates Industrial has a twelve month low of $20.88 and a twelve month high of $30.34. The business has a 50 day simple moving average of $26.68 and a 200-day simple moving average of $25.79.

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

Insider Activity at Gates Industrial

In related news, Director Peifang Zhang sold 6,000 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $29.56, for a total value of $177,360.00. Following the sale, the director owned 44,044 shares of the company’s stock, valued at $1,301,940.64. This trade represents a 11.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 2.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of GTES. California State Teachers Retirement System raised its stake in shares of Gates Industrial by 2,617.6% during the second quarter. California State Teachers Retirement System now owns 8,237,752 shares of the company’s stock valued at $230,410,000 after purchasing an additional 7,934,629 shares in the last quarter. Norges Bank bought a new position in Gates Industrial in the 4th quarter valued at about $74,843,000. Arrowstreet Capital Limited Partnership grew its position in Gates Industrial by 62.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,251,585 shares of the company’s stock valued at $50,908,000 after buying an additional 868,734 shares in the last quarter. Diamond Hill Capital Management LLC Investment Advisor acquired a new position in Gates Industrial during the 2nd quarter valued at about $21,142,000. Finally, Franklin Resources Inc. increased its stake in Gates Industrial by 5.5% during the 4th quarter. Franklin Resources Inc. now owns 7,305,065 shares of the company’s stock valued at $156,840,000 after buying an additional 381,896 shares during the period. 98.50% of the stock is owned by institutional investors and hedge funds.

Gates Industrial Company Profile

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

Its product portfolio includes synchronous and V-belts, belt drives, hydraulic and industrial hose systems, couplings, tensioners, pulleys, and related replacement and maintenance products. Gates serves original equipment manufacturers and aftermarket customers across industries such as industrial machinery, energy, transportation, agriculture, construction, and automotive.

Gates traces its history to 1911, when Charles Gates acquired a Colorado tire and rubber company.