Gates Industrial (NYSE:GTES) Given New $27.00 Price Target at DA Davidson

Key Points

• DA Davidson lowered Gates Industrial’s price target from $29 to $27 while maintaining a “neutral” rating, implying approximately 12.9% upside from the prior close.
• Analyst sentiment remains broadly positive: nine analysts rate the stock a Buy and three rate it a Hold, producing a “Moderate Buy” consensus and an average target price of $32.18.
• Gates Industrial’s latest quarterly results exceeded expectations on earnings, with EPS of $0.47 versus the $0.44 consensus estimate; revenue rose 5.6% year over year to $903.6 million, slightly below estimates.

Gates Industrial (NYSE:GTES - Get Free Report) had its price target decreased by analysts at DA Davidson from $29.00 to $27.00 in a note issued to investors on Monday, Benzinga reports. The firm currently has a "neutral" rating on the stock. DA Davidson's price objective would indicate a potential upside of 12.93% from the company's previous close.

Several other research analysts have also recently commented on GTES. Weiss Ratings cut shares of Gates Industrial from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, October 23rd. Wolfe Research reaffirmed an "outperform" rating and set a $33.00 price target on shares of Gates Industrial in a report on Thursday, July 9th. Wells Fargo & Company cut their price target on Gates Industrial from $30.00 to $28.00 and set an "equal weight" rating on the stock in a report on Monday. JPMorgan Chase & Co. boosted their price objective on Gates Industrial from $32.00 to $34.00 and gave the stock an "overweight" rating in a research report on Monday, August 3rd. Finally, Citigroup increased their price objective on Gates Industrial from $33.00 to $35.00 and gave the stock a "buy" rating in a report on Monday, August 3rd. Nine equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $32.18.

Gates Industrial Stock Performance

GTES traded up $0.08 during trading on Monday, reaching $23.91. 616,849 shares of the company were exchanged, compared to its average volume of 2,154,565. The stock has a market cap of $6.05 billion, a P/E ratio of 16.61 and a beta of 1.28. The firm has a 50 day moving average of $26.05 and a 200 day moving average of $25.75. The company has a current ratio of 3.41, a quick ratio of 2.40 and a debt-to-equity ratio of 0.57. Gates Industrial has a 52 week low of $20.88 and a 52 week high of $30.34.

Gates Industrial (NYSE:GTES - Get Free Report) last issued its earnings results on Friday, October 30th. The company reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.44 by $0.03. Gates Industrial had a return on equity of 10.42% and a net margin of 10.37%. The firm had revenue of $903.60 million for the quarter, compared to analyst estimates of $904.77 million. During the same period last year, the company earned $0.39 earnings per share. The firm's revenue for the quarter was up 5.6% on a year-over-year basis. On average, sell-side analysts forecast that Gates Industrial will post 1.58 EPS for the current fiscal year.

Insider Buying and Selling 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 shares were sold at an average price of $29.56, for a total value of $177,360.00. Following the completion of the transaction, the director directly owned 44,044 shares in the company, valued at $1,301,940.64. This trade represents a 11.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate 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 added to or reduced their stakes in the company. Chicago Partners Investment Group LLC boosted its stake in Gates Industrial by 42.7% during the 3rd quarter. Chicago Partners Investment Group LLC now owns 25,356 shares of the company's stock valued at $636,000 after purchasing an additional 7,583 shares in the last quarter. Covestor Ltd raised its stake in shares of Gates Industrial by 1,488.6% in the 3rd quarter. Covestor Ltd now owns 18,301 shares of the company's stock worth $479,000 after buying an additional 17,149 shares in the last quarter. Provenance Wealth Advisors LLC bought a new stake in shares of Gates Industrial in the 3rd quarter worth $396,000. Choreo LLC raised its stake in shares of Gates Industrial by 14.0% in the 3rd quarter. Choreo LLC now owns 22,835 shares of the company's stock worth $598,000 after buying an additional 2,796 shares in the last quarter. Finally, Signaturefd LLC lifted its holdings in shares of Gates Industrial by 114.3% in the third quarter. Signaturefd LLC now owns 10,961 shares of the company's stock valued at $287,000 after buying an additional 5,847 shares during the period. Institutional investors own 98.50% of the company's stock.

Gates Industrial Company Profile

Gates Industrial Corporation plc NYSE: GTES is a manufacturer of engineered power transmission and fluid power products. The company develops solutions designed to transfer power, control motion, and manage the flow of fluids in industrial and mobile applications.

Its product portfolio includes synchronous and V-belts, belt drives, hoses, hydraulic assemblies, couplings, tensioners, pulleys, and related components. Gates serves original equipment manufacturers, distributors, and aftermarket customers across industries such as automotive, agriculture, construction, energy, manufacturing, and general industrial equipment.

The company traces its roots to the Gates Rubber Company, founded in 1911 in Denver, Colorado.

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