Gates Industrial (NYSE:GTES) Stock Lifted to Strong-Buy by Wall Street Zen

Key Points

• Wall Street Zen upgraded Gates Industrial to “strong-buy” from “buy.” Overall, analysts maintain a “Moderate Buy” consensus, with nine Buy ratings, 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 and rose 6.6% year over year. The company issued fiscal 2026 EPS guidance of $1.62–$1.70.
• GTES shares opened at $26.84, up 2.2%, with a market capitalization of approximately $6.8 billion. Institutional investors own 98.5% of the stock, while a company director recently sold 6,000 shares.

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

GTES has been the subject of several other research reports. Morgan Stanley lifted their price objective on Gates Industrial from $27.00 to $28.00 and gave the stock an "equal weight" rating in a report on Friday, May 29th. Royal Bank Of Canada upped their price objective on shares of Gates Industrial from $33.00 to $34.00 and gave the company an "outperform" rating in a report on Monday, August 3rd. Wolfe Research reiterated an "outperform" rating and set a $33.00 target price on shares of Gates Industrial in a research report on Thursday, July 9th. JPMorgan Chase & Co. lifted their target price on shares of Gates Industrial from $32.00 to $34.00 and gave the stock an "overweight" rating in a research note on Monday, August 3rd. Finally, DA Davidson began coverage on shares of Gates Industrial in a research report on Tuesday, September 1st. They issued a "neutral" rating and a $29.00 price target on the stock. Nine research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $32.45.

Gates Industrial Stock Up 2.2%

Gates Industrial stock opened at $26.84 on Friday. The firm has a 50 day moving average price of $26.62 and a 200-day moving average price of $25.76. The company has a quick ratio of 2.36, a current ratio of 3.24 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 company has a market capitalization of $6.80 billion, a P/E ratio of 19.04 and a beta of 1.26.

Gates Industrial (NYSE:GTES - Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.42 by $0.02. The business had revenue of $941.60 million for the quarter, compared to the consensus estimate of $927.28 million. Gates Industrial had a return on equity of 10.11% and a net margin of 10.37%.Gates Industrial's revenue for the quarter was up 6.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.39 earnings per share. Gates Industrial has set its FY 2026 guidance at 1.620-1.700 EPS. As a group, equities analysts predict that Gates Industrial will post 1.57 EPS for the current year.

Insider Buying and Selling at Gates Industrial

In related news, Director Peifang Zhang sold 6,000 shares of the firm's 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 sale, the director directly owned 44,044 shares of the company's stock, valued at $1,301,940.64. This trade represents a 11.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 2.80% of the company's stock.

Hedge Funds Weigh In On Gates Industrial

A number of hedge funds and other institutional investors have recently bought and sold shares of GTES. Norges Bank purchased a new stake in shares of Gates Industrial during the fourth quarter worth about $74,843,000. Arrowstreet Capital Limited Partnership increased its holdings in Gates Industrial by 62.8% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,251,585 shares of the company's stock valued at $50,908,000 after purchasing an additional 868,734 shares during the period. Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in Gates Industrial in the 2nd quarter worth approximately $21,142,000. Franklin Resources Inc. lifted its holdings in Gates Industrial by 5.5% in the 4th quarter. Franklin Resources Inc. now owns 7,305,065 shares of the company's stock worth $156,840,000 after buying an additional 381,896 shares during the period. Finally, Dimensional Fund Advisors LP grew its position in shares of Gates Industrial by 2.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 11,546,581 shares of the company's stock worth $261,040,000 after buying an additional 295,706 shares during 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 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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