Wall Street Zen Downgrades Gates Industrial (NYSE:GTES) to Buy

Gates Industrial (NYSE:GTES) was downgraded by equities researchers at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a research note issued on Saturday, Wall Street Zen reports.

Several other research analysts have also commented on GTES. Citigroup boosted their price objective on Gates Industrial from $33.00 to $35.00 and gave the stock a “buy” rating in a research note on Monday, August 3rd. Morgan Stanley raised their price objective on Gates Industrial from $27.00 to $28.00 and gave the company an “equal weight” rating in a research note on Friday, May 29th. DA Davidson initiated coverage on Gates Industrial in a research note on Tuesday, September 1st. They issued a “neutral” rating and a $29.00 price objective for the company. Robert W. Baird lifted their target price on Gates Industrial from $37.00 to $39.00 and gave the stock an “outperform” rating in a report on Monday, August 3rd. Finally, Wells Fargo & Company boosted their target price on Gates Industrial from $26.00 to $30.00 and gave the company an “equal weight” rating in a research report on Monday, August 3rd. Nine research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $32.45.

Gates Industrial Stock Performance

Shares of NYSE:GTES opened at $26.05 on Friday. Gates Industrial has a 52 week low of $20.88 and a 52 week high of $30.34. The stock has a market capitalization of $6.60 billion, a P/E ratio of 18.48 and a beta of 1.26. The firm has a fifty day simple moving average of $26.72 and a two-hundred day simple moving average of $25.81. The company has a quick ratio of 2.36, a current ratio of 3.24 and a debt-to-equity ratio of 0.58.

Gates Industrial (NYSE:GTES) last posted its earnings results on Friday, July 31st. The company reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.42 by $0.02. The firm had revenue of $941.60 million for the quarter, compared to the consensus estimate of $927.28 million. Gates Industrial had a net margin of 10.37% and a return on equity of 10.11%. The business’s quarterly revenue was up 6.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.39 EPS. Gates Industrial has set its FY 2026 guidance at 1.620-1.700 EPS. On average, analysts expect that Gates Industrial will post 1.57 earnings per share for the current fiscal year.

Insider Activity at Gates Industrial

In related news, Director Peifang Zhang sold 6,000 shares of the company’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $29.56, for a total transaction of $177,360.00. Following the transaction, the director directly owned 44,044 shares in the company, valued at approximately $1,301,940.64. This represents a 11.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.80% of the company’s stock.

Institutional Trading of Gates Industrial

Several institutional investors have recently added to or reduced their stakes in the company. Xponance LLC increased its holdings in Gates Industrial by 3.7% during the fourth quarter. Xponance LLC now owns 13,792 shares of the company’s stock valued at $296,000 after buying an additional 486 shares during the period. Glenmede Investment Management LP raised its stake in Gates Industrial by 0.9% in the third quarter. Glenmede Investment Management LP now owns 55,047 shares of the company’s stock worth $1,366,000 after buying an additional 514 shares in the last quarter. Fifth Third Bancorp lifted its holdings in Gates Industrial by 46.3% during the first quarter. Fifth Third Bancorp now owns 1,624 shares of the company’s stock worth $37,000 after buying an additional 514 shares during the period. Lido Advisors LLC lifted its holdings in Gates Industrial by 3.8% during the fourth quarter. Lido Advisors LLC now owns 14,069 shares of the company’s stock worth $302,000 after buying an additional 521 shares during the period. Finally, Transamerica Financial Advisors LLC boosted its position in Gates Industrial by 51.9% during the 4th quarter. Transamerica Financial Advisors LLC now owns 1,577 shares of the company’s stock valued at $34,000 after acquiring an additional 539 shares in the last quarter. Institutional investors own 98.50% of the company’s stock.

Gates Industrial Company Profile

Gates Industrial Corporation plc (NYSE: GTES) is a global manufacturer of power transmission and fluid power products. The company supplies engineered components used to transfer motion and power, control the flow of fluids, and manage industrial and automotive systems.

Its product portfolio includes synchronous and V-belts, belt drives, hydraulic and industrial hose systems, couplings, tensioners, pulleys, and related replacement and maintenance products. Gates serves original equipment manufacturers and aftermarket customers across industries such as industrial machinery, energy, transportation, agriculture, construction, and automotive.

Gates traces its history to 1911, when Charles Gates acquired a Colorado tire and rubber company.