Gates Industrial Corp PLC (NYSE:GTES) Receives Average Recommendation of “Moderate Buy” from Brokerages

Gates Industrial Corp PLC (NYSE:GTES) has been given a consensus recommendation of “Moderate Buy” by the ten ratings firms that are presently covering the stock, Marketbeat reports. Four analysts have rated the stock with a hold recommendation and six have assigned a buy recommendation to the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $19.40.

Several equities research analysts have issued reports on the company. Royal Bank of Canada upgraded Gates Industrial from a “sector perform” rating to an “outperform” rating and increased their target price for the stock from $20.00 to $22.00 in a research report on Monday, August 19th. The Goldman Sachs Group boosted their price objective on shares of Gates Industrial from $18.00 to $20.00 and gave the company a “neutral” rating in a research note on Thursday, August 1st. Robert W. Baird decreased their target price on shares of Gates Industrial from $26.00 to $22.00 and set an “outperform” rating on the stock in a report on Thursday, August 1st. Evercore ISI raised their price target on shares of Gates Industrial from $15.00 to $16.00 and gave the company an “in-line” rating in a report on Monday, August 19th. Finally, Morgan Stanley assumed coverage on shares of Gates Industrial in a report on Friday, September 6th. They issued an “equal weight” rating and a $19.00 price target on the stock.

Gates Industrial Trading Down 0.6 %

Shares of GTES stock opened at $17.33 on Friday. The company has a market cap of $4.53 billion, a P/E ratio of 19.04 and a beta of 1.40. Gates Industrial has a fifty-two week low of $10.68 and a fifty-two week high of $19.07. The stock has a 50 day simple moving average of $17.25 and a two-hundred day simple moving average of $17.03. The company has a debt-to-equity ratio of 0.68, a quick ratio of 2.20 and a current ratio of 3.11.

Gates Industrial (NYSE:GTES) last released its quarterly earnings results on Wednesday, July 31st. The company reported $0.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.33 by $0.01. Gates Industrial had a return on equity of 10.27% and a net margin of 7.24%. The business had revenue of $885.50 million during the quarter, compared to the consensus estimate of $893.00 million. Research analysts forecast that Gates Industrial will post 1.24 earnings per share for the current year.

Gates Industrial declared that its Board of Directors has approved a share repurchase plan on Wednesday, July 31st that allows the company to buyback $250.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 5.4% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Gates Industrial

In related news, Director Wilson S. Neely bought 11,952 shares of the stock in a transaction dated Wednesday, August 21st. The stock was bought at an average price of $16.80 per share, with a total value of $200,793.60. Following the purchase, the director now owns 6,000 shares in the company, valued at approximately $100,800. The trade was a -200.00 % increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 2.30% of the company’s stock.

Institutional Investors Weigh In On Gates Industrial

Several institutional investors have recently added to or reduced their stakes in GTES. Vanguard Group Inc. boosted its holdings in shares of Gates Industrial by 17.5% during the first quarter. Vanguard Group Inc. now owns 18,008,743 shares of the company’s stock worth $318,935,000 after purchasing an additional 2,678,954 shares during the period. Allspring Global Investments Holdings LLC raised its position in Gates Industrial by 19.9% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 14,750,718 shares of the company’s stock valued at $261,235,000 after purchasing an additional 2,450,526 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in Gates Industrial by 9.5% in the 2nd quarter. Dimensional Fund Advisors LP now owns 11,921,356 shares of the company’s stock worth $188,477,000 after buying an additional 1,037,741 shares during the period. LSV Asset Management grew its position in shares of Gates Industrial by 19.9% in the 2nd quarter. LSV Asset Management now owns 4,137,951 shares of the company’s stock worth $65,421,000 after buying an additional 686,080 shares during the last quarter. Finally, Fred Alger Management LLC increased its stake in shares of Gates Industrial by 156.8% during the second quarter. Fred Alger Management LLC now owns 2,665,632 shares of the company’s stock valued at $42,144,000 after buying an additional 1,627,482 shares during the period. Hedge funds and other institutional investors own 98.50% of the company’s stock.

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.