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

Shares of Gates Industrial Corp PLC (NYSE:GTES) have been given an average recommendation of “Moderate Buy” by the ten research firms that are currently covering the firm, Marketbeat.com reports. Four research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $19.40.

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

Gates Industrial Price Performance

Shares of NYSE GTES opened at $17.33 on Friday. The company has a 50 day simple moving average of $17.25 and a two-hundred day simple moving average of $17.03. Gates Industrial has a fifty-two week low of $10.68 and a fifty-two week high of $19.07. The company has a market capitalization of $4.53 billion, a price-to-earnings ratio of 19.04 and a beta of 1.40. 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 posted its quarterly earnings results on Wednesday, July 31st. The company reported $0.34 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.01. The company had revenue of $885.50 million for the quarter, compared to the consensus estimate of $893.00 million. Gates Industrial had a return on equity of 10.27% and a net margin of 7.24%. Analysts expect that Gates Industrial will post 1.24 EPS for the current fiscal year.

Gates Industrial declared that its board has initiated a share buyback program on Wednesday, July 31st that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 5.4% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.

Insider Transactions at Gates Industrial

In other news, Director Wilson S. Neely acquired 11,952 shares of Gates Industrial stock in a transaction that occurred on Wednesday, August 21st. The stock was bought at an average price of $16.80 per share, for a total transaction of $200,793.60. Following the completion of the transaction, the director now owns 6,000 shares in the company, valued at $100,800. The trade was a -200.00 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 2.30% of the company’s stock.

Institutional Trading of Gates Industrial

Large investors have recently added to or reduced their stakes in the business. Bank of Montreal Can raised its position 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 acquiring an additional 823 shares during the period. Principal Financial Group Inc. lifted its position in Gates Industrial by 8.9% during the second quarter. Principal Financial Group Inc. now owns 15,242 shares of the company’s stock valued at $241,000 after purchasing an additional 1,250 shares in the last quarter. Headlands Technologies LLC increased its position in Gates Industrial by 341.1% in the second quarter. Headlands Technologies LLC now owns 1,707 shares of the company’s stock worth $27,000 after buying an additional 1,320 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in Gates Industrial by 4.8% in the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 35,554 shares of the company’s stock worth $560,000 after acquiring an additional 1,616 shares in the last quarter. Finally, Savant Capital LLC increased its stake in shares of Gates Industrial by 1.6% in the second quarter. Savant Capital LLC now owns 121,889 shares of the company’s stock worth $1,927,000 after purchasing an additional 1,879 shares in the last quarter. 98.50% of the stock is currently owned by institutional investors.

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.