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

Gates Industrial Corp PLC (NYSE:GTES)’s stock price hit a new 52-week high 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 changing hands. The stock had previously closed at $21.39.

Several other equities analysts have also weighed in on the stock. The Goldman Sachs Group increased their price objective on shares of Gates Industrial from $18.00 to $20.00 and gave the company a “neutral” rating in a report on Thursday, August 1st. Barclays lifted their price target on shares of Gates Industrial from $16.00 to $21.00 and gave the stock an “equal weight” rating in a research report on Tuesday, November 5th. Robert W. Baird cut 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. Morgan Stanley initiated coverage on shares of Gates Industrial in a research note on Friday, September 6th. They issued an “equal weight” rating and a $19.00 price target on the stock. Finally, Evercore ISI increased 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. Four research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $20.40.

Hedge Funds Weigh In On Gates Industrial

A number of large investors have recently made changes to their positions in GTES. State Street Corp boosted its stake in Gates Industrial by 112.9% in the 3rd quarter. State Street Corp now owns 6,523,366 shares of the company’s stock valued at $114,485,000 after purchasing an additional 3,459,450 shares during the period. Vanguard Group Inc. raised its holdings in Gates Industrial by 17.5% in the 1st quarter. Vanguard Group Inc. now owns 18,008,743 shares of the company’s stock valued at $318,935,000 after acquiring an additional 2,678,954 shares in the last quarter. Zimmer Partners LP raised its position in shares of Gates Industrial by 141.2% in the 3rd quarter. Zimmer Partners LP now owns 4,213,452 shares of the company’s stock valued at $73,946,000 after buying an additional 2,466,543 shares in the last quarter. Fred Alger Management LLC grew its position in Gates Industrial by 156.8% in the second quarter. Fred Alger Management LLC now owns 2,665,632 shares of the company’s stock valued at $42,144,000 after acquiring an additional 1,627,482 shares during the last quarter. Finally, Jennison Associates LLC lifted its stake in shares of Gates Industrial by 45.9% in the 3rd quarter. Jennison Associates LLC now owns 4,032,089 shares of the company’s stock valued at $70,763,000 after acquiring an additional 1,268,407 shares during the last quarter. Institutional investors own 98.50% of the company’s stock.

Gates Industrial Price Performance

The company has a market cap of $5.56 billion, a price-to-earnings ratio of 25.77 and a beta of 1.38. The company has a 50 day moving average price of $18.68 and a 200-day moving average price of $17.47. The company has a quick ratio of 2.11, a current ratio of 3.02 and a debt-to-equity ratio of 0.70.

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

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.