Gates Industrial (NYSE:GTES) Sets New 52-Week High – Here’s What Happened

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

Analyst Ratings Changes

Several research analysts have recently weighed in on GTES shares. Morgan Stanley assumed coverage on Gates Industrial in a research report on Friday, September 6th. They issued an “equal weight” rating and a $19.00 price objective for the company. Evercore ISI lifted their target price on Gates Industrial from $15.00 to $16.00 and gave the stock an “in-line” rating in a report on Monday, August 19th. KeyCorp increased their price target on Gates Industrial from $21.00 to $22.00 and gave the stock an “overweight” rating in a report on Thursday. Robert W. Baird lowered their price objective on shares of Gates Industrial from $26.00 to $22.00 and set an “outperform” rating for the company in a research note on Thursday, August 1st. Finally, 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. Four equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $19.80.

Gates Industrial Price Performance

The company has a debt-to-equity ratio of 0.68, a current ratio of 3.11 and a quick ratio of 2.20. The business’s fifty day moving average price is $17.67 and its 200-day moving average price is $17.11. The stock has a market capitalization of $5.06 billion, a price-to-earnings ratio of 23.33 and a beta of 1.40.

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. The business had revenue of $885.50 million during the quarter, compared to the consensus estimate of $893.00 million. Gates Industrial had a return on equity of 9.90% and a net margin of 6.43%. On average, research analysts forecast that Gates Industrial Corp PLC will post 1.23 EPS for the current year.

Gates Industrial announced that its Board of Directors has initiated a stock buyback program on Wednesday, July 31st that authorizes the company to buyback $250.00 million in shares. This buyback authorization authorizes the company to reacquire up to 5.4% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.

Insider Activity at Gates Industrial

In other news, Director Wilson S. Neely acquired 11,952 shares of Gates Industrial 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 transaction, the director now owns 6,000 shares of the company’s stock, valued at approximately $100,800. This trade represents a -200.00 % increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of GTES. Headlands Technologies LLC increased its stake in shares of Gates Industrial by 341.1% during the 2nd quarter. Headlands Technologies LLC now owns 1,707 shares of the company’s stock worth $27,000 after purchasing an additional 1,320 shares during the last quarter. GAMMA Investing LLC grew its holdings 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 purchasing an additional 2,998 shares during the period. Point72 DIFC Ltd purchased a new stake in Gates Industrial in the second quarter worth $142,000. Levin Capital Strategies L.P. bought a new stake in shares of Gates Industrial in the second quarter valued at $158,000. Finally, MQS Management LLC purchased a new position in shares of Gates Industrial during the 2nd quarter valued at $168,000. Institutional investors own 98.50% of the company’s stock.

Gates Industrial Company Profile

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.