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

Key Points

• Wall Street Zen downgraded Gates Industrial from “strong buy” to “buy,” though broader analyst sentiment remains positive with a “Moderate Buy” consensus and an average price target of $32.45.
• Gates Industrial exceeded quarterly expectations, reporting $0.44 in EPS versus the $0.42 consensus and $941.6 million in revenue, up 6.6% year over year. Management’s fiscal 2026 EPS guidance is $1.62–$1.70.
• GTES shares opened at $26.65, while institutional investors own a substantial 98.5% of the company; an insider director recently sold 6,000 shares at an average price of $29.56.

Gates Industrial (NYSE:GTES - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Saturday, Wall Street Zen reports.

A number of other research analysts have also commented on GTES. Wells Fargo & Company lifted their price objective on shares of Gates Industrial from $26.00 to $30.00 and gave the company an "equal weight" rating in a research note on Monday, August 3rd. Wolfe Research reissued an "outperform" rating and set a $33.00 price target on shares of Gates Industrial in a report on Thursday, July 9th. KeyCorp boosted their price target on Gates Industrial from $31.00 to $34.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. DA Davidson initiated coverage on Gates Industrial in a research note on Tuesday, September 1st. They set a "neutral" rating and a $29.00 price objective for the company. Finally, Citigroup lifted their target price on Gates Industrial from $33.00 to $35.00 and gave the company a "buy" rating in a research note on Monday, August 3rd. Nine research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, Gates Industrial currently has an average rating of "Moderate Buy" and an average price target of $32.45.

Gates Industrial Price Performance

Shares of NYSE GTES opened at $26.65 on Friday. The company has a current ratio of 3.24, a quick ratio of 2.36 and a debt-to-equity ratio of 0.58. Gates Industrial has a twelve month low of $20.88 and a twelve month high of $30.34. The stock has a 50 day moving average of $26.72 and a two-hundred day moving average of $26.03. The stock has a market cap of $6.75 billion, a P/E ratio of 18.90 and a beta of 1.28.

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

Insider Transactions at Gates Industrial

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

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. QRG Capital Management Inc. grew its stake in shares of Gates Industrial by 16.4% during the 2nd quarter. QRG Capital Management Inc. now owns 16,947 shares of the company's stock worth $474,000 after purchasing an additional 2,382 shares during the period. Sequoia Financial Advisors LLC lifted its stake in shares of Gates Industrial by 93.1% in the second quarter. Sequoia Financial Advisors LLC now owns 34,116 shares of the company's stock valued at $954,000 after purchasing an additional 16,451 shares during the period. Tidal Investments LLC boosted its holdings in Gates Industrial by 2.6% during the second quarter. Tidal Investments LLC now owns 597,076 shares of the company's stock worth $16,700,000 after buying an additional 15,203 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new stake in Gates Industrial during the second quarter worth about $120,000. Finally, NewEdge Advisors LLC boosted its holdings in Gates Industrial by 848.5% during the second quarter. NewEdge Advisors LLC now owns 8,527 shares of the company's stock worth $239,000 after buying an additional 7,628 shares in the last quarter. Hedge funds and other 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 engineered power transmission and fluid power products. The company develops and supplies belts, hoses, hydraulic components, and related systems used to transfer power, control motion, and manage the flow of fluids in industrial and mobile equipment.

Its products serve a broad range of markets, including automotive and industrial aftermarket, construction, agriculture, energy, manufacturing, transportation, and other applications requiring durable motion and fluid-management solutions.

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