Gates Industrial (NYSE:GTES) Downgraded by Wall Street Zen to "Buy"

Key Points

• Wall Street Zen downgraded Gates Industrial from “strong buy” to “buy,” while the broader analyst consensus remains “Moderate Buy,” with nine Buy ratings and four Holds and an average price target of $32.45.
• Gates Industrial reported quarterly EPS of $0.44, exceeding estimates by $0.02, while revenue reached $941.6 million, up 6.6% year over year and above expectations.
• The stock opened at $26.05 and has a market capitalization of approximately $6.6 billion. Institutional investors own 98.5% of the company, while an insider recently sold 6,000 shares.

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

Several other analysts also recently issued reports on GTES. DA Davidson started coverage on Gates Industrial in a report on Tuesday, September 1st. They issued a "neutral" rating and a $29.00 price target for the company. KeyCorp boosted their price objective on Gates Industrial from $31.00 to $34.00 and gave the stock an "overweight" rating in a research note on Monday, August 3rd. JPMorgan Chase & Co. upped their target price on Gates Industrial from $32.00 to $34.00 and gave the stock an "overweight" rating in a research report on Monday, August 3rd. Robert W. Baird upped their target price on Gates Industrial from $37.00 to $39.00 and gave the stock an "outperform" rating in a research report on Monday, August 3rd. Finally, Citigroup increased 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 investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, Gates Industrial has an average rating of "Moderate Buy" and an average price target of $32.45.

Gates Industrial Stock Up 1.7%

GTES opened at $26.05 on Friday. Gates Industrial has a 1 year low of $20.88 and a 1 year high of $30.34. The firm has a 50 day moving average price of $26.72 and a 200 day moving average price of $25.82. The company has a debt-to-equity ratio of 0.58, a quick ratio of 2.36 and a current ratio of 3.24. The company has a market cap of $6.60 billion, a PE ratio of 18.48 and a beta of 1.26.

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

Insider Activity

In other Gates Industrial news, Director Peifang Zhang sold 6,000 shares of the stock in a transaction on 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 $1,301,940.64. This represents a 11.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 2.80% of the company's stock.

Institutional Investors Weigh In On Gates Industrial

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Sequoia Financial Advisors LLC lifted its position in shares of Gates Industrial by 93.1% during the second quarter. Sequoia Financial Advisors LLC now owns 34,116 shares of the company's stock worth $954,000 after purchasing an additional 16,451 shares during the last quarter. Tidal Investments LLC increased its holdings in Gates Industrial by 2.6% in the second quarter. Tidal Investments LLC now owns 597,076 shares of the company's stock valued at $16,700,000 after buying an additional 15,203 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new stake in Gates Industrial during the second quarter valued at approximately $120,000. NewEdge Advisors LLC raised its stake in Gates Industrial by 848.5% during the second quarter. NewEdge Advisors LLC now owns 8,527 shares of the company's stock valued at $239,000 after buying an additional 7,628 shares in the last quarter. Finally, Squarepoint Ops LLC acquired a new stake in Gates Industrial during the second quarter valued at approximately $1,750,000. Institutional investors own 98.50% of the company's stock.

About Gates Industrial

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.

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