Gates Industrial (NYSE:GTES) Sets New 1-Year High on Analyst Upgrade

Gates Industrial Corp PLC (NYSE:GTES)’s share price reached a new 52-week high during mid-day trading on Friday after KeyCorp raised their price target on the stock from $22.00 to $23.00. KeyCorp currently has an overweight rating on the stock. Gates Industrial traded as high as $21.85 and last traded at $21.84, with a volume of 372725 shares. The stock had previously closed at $21.39.

GTES has been the topic of several other reports. Morgan Stanley began coverage on Gates Industrial in a research report on Friday, September 6th. They set an “equal weight” rating and a $19.00 price target on the stock. Evercore ISI lifted their price objective 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. The Goldman Sachs Group upped their price target on Gates Industrial from $18.00 to $20.00 and gave the company a “neutral” rating in a report on Thursday, August 1st. Robert W. Baird cut their target price on Gates Industrial from $26.00 to $22.00 and set an “outperform” rating on the stock in a research report on Thursday, August 1st. Finally, Barclays boosted their price objective on Gates Industrial from $16.00 to $21.00 and gave the stock an “equal weight” rating in a report on Tuesday, November 5th. Four analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $20.40.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of GTES. Venturi Wealth Management LLC lifted its stake in Gates Industrial by 35.9% in the third quarter. Venturi Wealth Management LLC now owns 3,079 shares of the company’s stock valued at $54,000 after acquiring an additional 814 shares during the last quarter. Bank of Montreal Can boosted its holdings in Gates Industrial by 2.5% in the second quarter. Bank of Montreal Can now owns 33,800 shares of the company’s stock worth $535,000 after purchasing an additional 823 shares in the last quarter. Covestor Ltd increased its position in Gates Industrial by 26.3% during the third quarter. Covestor Ltd now owns 4,812 shares of the company’s stock worth $84,000 after buying an additional 1,001 shares during the last quarter. Tectonic Advisors LLC raised its holdings in Gates Industrial by 5.5% during the third quarter. Tectonic Advisors LLC now owns 20,128 shares of the company’s stock valued at $353,000 after buying an additional 1,043 shares in the last quarter. Finally, Fort L.P. lifted its position in shares of Gates Industrial by 9.3% in the third quarter. Fort L.P. now owns 14,423 shares of the company’s stock worth $253,000 after buying an additional 1,222 shares during the last quarter. 98.50% of the stock is owned by institutional investors and hedge funds.

Gates Industrial Stock Performance

The stock has a fifty day moving average price of $18.68 and a 200 day moving average price of $17.47. The company has a current ratio of 3.02, a quick ratio of 2.11 and a debt-to-equity ratio of 0.70. The firm has a market cap of $5.56 billion, a price-to-earnings ratio of 25.77 and a beta of 1.38.

Gates Industrial announced that its board has authorized a share repurchase plan on Wednesday, July 31st that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 5.4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

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.