Short Interest in Gates Industrial Corp PLC (NYSE:GTES) Drops By 48.4%

Gates Industrial Corp PLC (NYSE:GTES) was the recipient of a large decrease in short interest in the month of August. As of August 31st, there was short interest totalling 955,300 shares, a decrease of 48.4% from the August 15th total of 1,850,000 shares. Based on an average trading volume of 944,100 shares, the days-to-cover ratio is presently 1.0 days. Approximately 1.0% of the shares of the stock are sold short.

Several brokerages recently weighed in on GTES. TheStreet downgraded Gates Industrial from a “b” rating to a “c+” rating in a research report on Monday, September 13th. Credit Suisse Group upped their price objective on Gates Industrial from $21.00 to $22.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 10th. Robert W. Baird restated a “buy” rating on shares of Gates Industrial in a research report on Wednesday, August 25th. Evercore ISI began coverage on Gates Industrial in a research report on Friday, September 3rd. They set an “outperform” rating and a $23.00 price objective for the company. Finally, Zacks Investment Research upgraded Gates Industrial from a “hold” rating to a “buy” rating and set a $20.00 price objective for the company in a research report on Wednesday, August 11th. Two research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $21.45.

In other news, major shareholder Blackstone Inc sold 28,750,000 shares of the company’s stock in a transaction on Monday, August 16th. The stock was sold at an average price of $15.36, for a total transaction of $441,600,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.76% of the company’s stock.

Several hedge funds have recently modified their holdings of GTES. PNC Financial Services Group Inc. grew its stake in Gates Industrial by 245.2% during the second quarter. PNC Financial Services Group Inc. now owns 2,879 shares of the company’s stock worth $53,000 after purchasing an additional 2,045 shares during the period. Sowell Financial Services LLC acquired a new stake in Gates Industrial during the first quarter worth approximately $86,000. Panagora Asset Management Inc. acquired a new stake in Gates Industrial during the first quarter worth approximately $120,000. Walleye Trading LLC acquired a new stake in Gates Industrial during the first quarter worth approximately $169,000. Finally, MML Investors Services LLC acquired a new stake in Gates Industrial during the first quarter worth approximately $177,000.

GTES traded down $0.42 on Friday, reaching $16.24. The stock had a trading volume of 2,576,620 shares, compared to its average volume of 901,709. Gates Industrial has a fifty-two week low of $10.58 and a fifty-two week high of $18.94. The firm has a 50-day moving average of $17.17 and a 200-day moving average of $17.19. The company has a current ratio of 2.52, a quick ratio of 1.82 and a debt-to-equity ratio of 0.79. The company has a market capitalization of $4.71 billion, a price-to-earnings ratio of 20.82 and a beta of 1.81.

Gates Industrial (NYSE:GTES) last issued its earnings results on Sunday, August 8th. The company reported $0.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.37 by $0.05. The business had revenue of $915.10 million during the quarter, compared to analysts’ expectations of $907.86 million. Gates Industrial had a return on equity of 11.21% and a net margin of 6.98%. The business’s revenue for the quarter was up 58.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.03 EPS. Sell-side analysts anticipate that Gates Industrial will post 1.32 EPS for the current fiscal year.

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.

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