Gates Industrial (NYSE:GTES) Hits New 12-Month High – Here’s What Happened

Gates Industrial Corp PLC (NYSE:GTES) shares reached a new 52-week high during trading on Wednesday . The stock traded as high as $19.07 and last traded at $18.77, with a volume of 217798 shares. The stock had previously closed at $18.26.

Analyst Ratings Changes

Several research analysts recently commented on the stock. Royal Bank of Canada raised shares of Gates Industrial from a “sector perform” rating to an “outperform” rating and raised their price objective for the stock from $20.00 to $22.00 in a report on Monday, August 19th. The Goldman Sachs Group increased their target price on shares of Gates Industrial from $18.00 to $20.00 and gave the stock a “neutral” rating in a research note on Thursday, August 1st. Robert W. Baird lowered their target price on shares of Gates Industrial from $26.00 to $22.00 and set an “outperform” rating on the stock in a research note on Thursday, August 1st. Morgan Stanley initiated coverage on shares of Gates Industrial in a research note on Friday, September 6th. They issued an “equal weight” rating and a $19.00 target price on the stock. Finally, Evercore ISI increased their target price on shares of Gates Industrial from $15.00 to $16.00 and gave the stock an “in-line” rating in a research note on Monday, August 19th. Four analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $19.40.

Gates Industrial Price Performance

The business’s 50 day moving average price is $17.64 and its two-hundred day moving average price is $17.10. The stock has a market cap of $4.98 billion, a P/E ratio of 20.10 and a beta of 1.40. The company has a current ratio of 3.11, a quick ratio of 2.20 and a debt-to-equity ratio of 0.68.

Gates Industrial (NYSE:GTES) last posted its quarterly earnings data on Wednesday, July 31st. The company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.33 by $0.01. Gates Industrial had a net margin of 7.24% and a return on equity of 10.27%. The business had revenue of $885.50 million for the quarter, compared to analyst estimates of $893.00 million. As a group, sell-side analysts expect that Gates Industrial Corp PLC will post 1.23 earnings per share for the current fiscal year.

Gates Industrial declared that its Board of Directors has initiated a stock repurchase program on Wednesday, July 31st that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the company to purchase up to 5.4% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In other news, Director Wilson S. Neely bought 11,952 shares of the firm’s stock in a transaction on Wednesday, August 21st. The stock was acquired at an average cost of $16.80 per share, with a total value of $200,793.60. Following the completion of the acquisition, the director now owns 6,000 shares of the company’s stock, valued at approximately $100,800. This represents a -200.00 % increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 2.30% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in GTES. Headlands Technologies LLC raised its holdings in shares of Gates Industrial by 341.1% during the second quarter. Headlands Technologies LLC now owns 1,707 shares of the company’s stock valued at $27,000 after purchasing an additional 1,320 shares during the last quarter. GAMMA Investing LLC grew its position in Gates Industrial by 333.9% during the third quarter. GAMMA Investing LLC now owns 3,896 shares of the company’s stock valued at $68,000 after buying an additional 2,998 shares during the period. Point72 DIFC Ltd bought a new stake in Gates Industrial during the second quarter valued at approximately $142,000. Levin Capital Strategies L.P. bought a new stake in Gates Industrial during the second quarter valued at approximately $158,000. Finally, MQS Management LLC bought a new stake in Gates Industrial during the second quarter valued at approximately $168,000. 98.50% of the stock is owned by hedge funds and other institutional investors.

About Gates Industrial

Gates Industrial Corporation PLC designs and manufactures power transmission equipment. Its products serves harsh and hazardous industries such as agriculture, construction, manufacturing and energy, to everyday consumer applications such as printers, power washers, automatic doors and vacuum cleaners and virtually every form of transportation.