Gates Industrial (NYSE:GTES) Price Target Raised to $40.00

Key Points

• Robert W. Baird raised Gates Industrial’s price target to $40 from $39 and maintained an “outperform” rating, implying 68.1% upside from the previous close.
• Analyst sentiment remains favorable, with nine Buy ratings and three Holds producing a consensus “Moderate Buy” rating and average target price of $32.36.
• Gates Industrial reported quarterly EPS of $0.47, beating expectations of $0.44, while revenue rose 5.6% year over year to $903.6 million, slightly below estimates.

Gates Industrial (NYSE:GTES - Get Free Report) had its target price upped by analysts at Robert W. Baird from $39.00 to $40.00 in a research note issued to investors on Monday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Robert W. Baird's target price would indicate a potential upside of 68.10% from the stock's previous close.

Other research analysts have also recently issued research reports about the stock. JPMorgan Chase & Co. upped their target price on shares of Gates Industrial from $32.00 to $34.00 and gave the stock an "overweight" rating in a research report on Monday, August 3rd. Citigroup boosted their price objective on Gates Industrial from $33.00 to $35.00 and gave the stock a "buy" rating in a research report on Monday, August 3rd. Weiss Ratings lowered Gates Industrial from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, October 23rd. Wells Fargo & Company set a $28.00 price objective on Gates Industrial in a report on Monday. Finally, DA Davidson initiated coverage on Gates Industrial in a research report on Tuesday, September 1st. They issued a "neutral" rating and a $29.00 target price on the stock. Nine equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $32.36.

Gates Industrial Trading Down 0.1%

NYSE GTES opened at $23.80 on Monday. The company's fifty day moving average price is $26.05 and its two-hundred day moving average price is $25.75. The company has a market capitalization of $6.02 billion, a price-to-earnings ratio of 16.52 and a beta of 1.28. Gates Industrial has a 12 month low of $20.88 and a 12 month high of $30.34. The company has a debt-to-equity ratio of 0.57, a current ratio of 3.41 and a quick ratio of 2.40.

Gates Industrial (NYSE:GTES - Get Free Report) last issued its quarterly earnings results on Friday, October 30th. The company reported $0.47 EPS for the quarter, topping the consensus estimate of $0.44 by $0.03. Gates Industrial had a net margin of 10.37% and a return on equity of 10.42%. The business had revenue of $903.60 million for the quarter, compared to analysts' expectations of $904.77 million. During the same quarter last year, the company posted $0.39 earnings per share. The company's quarterly revenue was up 5.6% compared to the same quarter last year. As a group, research analysts predict that Gates Industrial will post 1.58 earnings per share for the current fiscal year.

Insider Buying and Selling at Gates Industrial

In other Gates Industrial news, Director Peifang Zhang sold 6,000 shares of the business's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $29.56, for a total value of $177,360.00. Following the completion of the sale, the director owned 44,044 shares of the company's stock, valued at $1,301,940.64. The trade was a 11.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of GTES. 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 during the period. Covestor Ltd grew 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 valued at $479,000 after purchasing an additional 17,149 shares during the period. Provenance Wealth Advisors LLC acquired a new position in shares of Gates Industrial in the 3rd quarter worth approximately $396,000. Choreo LLC raised its holdings 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 position in shares of Gates Industrial by 114.3% during the 3rd quarter. Signaturefd LLC now owns 10,961 shares of the company's stock worth $287,000 after buying an additional 5,847 shares during the period. Institutional investors and hedge funds 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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