Gates Industrial (NYSE:GTES) Sets New 12-Month High – Should You Buy?

Shares of Gates Industrial Corp PLC (NYSE:GTES) hit a new 52-week high during mid-day trading on Wednesday . The company 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.

Analysts Set New Price Targets

A number of equities analysts have recently commented on GTES shares. Royal Bank of Canada raised Gates Industrial from a “sector perform” rating to an “outperform” rating and raised their price target for the stock from $20.00 to $22.00 in a report on Monday, August 19th. Robert W. Baird dropped their price objective on Gates Industrial from $26.00 to $22.00 and set an “outperform” rating on the stock in a report on Thursday, August 1st. KeyCorp upped their price target on Gates Industrial from $21.00 to $22.00 and gave the company an “overweight” rating in a research report on Thursday. Morgan Stanley began 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. Finally, The Goldman Sachs Group upped 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. Four equities research 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 currently has a consensus rating of “Moderate Buy” and a consensus price target of $19.80.

Gates Industrial Trading Up 0.3 %

The firm’s 50-day simple moving average is $17.67 and its 200-day simple moving average is $17.11. The firm has a market capitalization of $5.06 billion, a P/E ratio of 23.33 and a beta of 1.40. The company has a quick ratio of 2.20, a current ratio of 3.11 and a debt-to-equity ratio of 0.68.

Gates Industrial (NYSE:GTES) last released its quarterly earnings results on Wednesday, July 31st. The company reported $0.34 earnings per share for the quarter, beating analysts’ consensus estimates of $0.33 by $0.01. Gates Industrial had a return on equity of 9.90% and a net margin of 6.43%. The business had revenue of $885.50 million for the quarter, compared to the consensus estimate of $893.00 million. Analysts anticipate that Gates Industrial Corp PLC will post 1.23 EPS for the current year.

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

Insider Activity at Gates Industrial

In other news, Director Wilson S. Neely bought 11,952 shares of the business’s stock in a transaction on Wednesday, August 21st. The stock was acquired at an average price of $16.80 per share, with a total value of $200,793.60. Following the completion of the purchase, the director now directly owns 6,000 shares in the company, valued at $100,800. This represents a -200.00 % increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 2.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Gates Industrial

Institutional investors have recently made changes to their positions in the business. Bank of Montreal Can raised its position in Gates Industrial by 2.5% in the 2nd quarter. Bank of Montreal Can now owns 33,800 shares of the company’s stock worth $535,000 after purchasing an additional 823 shares during the period. Tectonic Advisors LLC increased its holdings in shares of Gates Industrial by 5.5% in the third quarter. Tectonic Advisors LLC now owns 20,128 shares of the company’s stock worth $353,000 after buying an additional 1,043 shares during the period. Fort L.P. increased its holdings 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 period. Principal Financial Group Inc. lifted its stake in shares of Gates Industrial by 8.9% in the 2nd quarter. Principal Financial Group Inc. now owns 15,242 shares of the company’s stock valued at $241,000 after acquiring an additional 1,250 shares during the last quarter. Finally, Headlands Technologies LLC boosted its holdings in Gates Industrial by 341.1% during the 2nd quarter. Headlands Technologies LLC now owns 1,707 shares of the company’s stock valued at $27,000 after acquiring an additional 1,320 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.