Gates Industrial Corporation PLC (NYSE:GTES) Stock Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on Gates Industrial, with nine buy ratings and three holds. The average 12-month price target is $32.45, above the stock’s reported $23.80 opening price.
• Gates Industrial reported third-quarter adjusted EPS of $0.47, beating the $0.44 consensus estimate, while revenue rose 5.6% year over year to $903.6 million. Management raised its fiscal 2026 adjusted EPS outlook to $1.66–$1.72 and expects approximately 6.5% fourth-quarter core sales growth.
• Despite the earnings beat and higher guidance, the stock declined on heavy trading, suggesting investors wanted a stronger outlook or margin improvement. Institutional investors own approximately 98.5% of the shares, while a company director recently reduced their holdings by 11.99% through a stock sale.

Shares of Gates Industrial Corporation PLC (NYSE:GTES - Get Free Report) have been assigned an average rating of "Moderate Buy" from the twelve ratings firms that are currently covering the firm, Marketbeat Ratings reports. Three analysts have rated the stock with a hold rating and nine have given a buy rating to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $32.45.

A number of equities analysts have commented on GTES shares. Weiss Ratings cut Gates Industrial from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, October 23rd. Wolfe Research reiterated an "outperform" rating and issued a $33.00 price objective on shares of Gates Industrial in a report on Thursday, July 9th. Robert W. Baird lifted their price objective on Gates Industrial from $37.00 to $39.00 and gave the stock an "outperform" rating in a research report on Monday, August 3rd. KeyCorp boosted their target price on Gates Industrial from $31.00 to $34.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. Finally, Wall Street Zen lowered shares of Gates Industrial from a "strong-buy" rating to a "buy" rating in a research note on Saturday, October 10th.

Insider Activity

In other 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 value of $177,360.00. Following the completion of the sale, the director directly owned 44,044 shares of the company's stock, valued at $1,301,940.64. This 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 at this hyperlink. Company insiders own 2.80% of the company's stock.

Institutional Trading of Gates Industrial

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Root Financial Partners LLC acquired a new stake in Gates Industrial during the 3rd quarter worth $34,000. Fifth Third Bancorp raised its holdings in Gates Industrial by 46.3% in the 1st quarter. Fifth Third Bancorp now owns 1,624 shares of the company's stock valued at $37,000 after acquiring an additional 514 shares during the last quarter. Parallel Advisors LLC raised its holdings in Gates Industrial by 37.7% in the 1st quarter. Parallel Advisors LLC now owns 2,536 shares of the company's stock valued at $57,000 after acquiring an additional 694 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new stake in Gates Industrial in the 2nd quarter valued at about $120,000. Finally, Nisa Investment Advisors LLC raised its holdings in Gates Industrial by 21.9% in the 3rd quarter. Nisa Investment Advisors LLC now owns 6,064 shares of the company's stock valued at $159,000 after acquiring an additional 1,089 shares during the last quarter. 98.50% of the stock is currently owned by institutional investors.

Gates Industrial Price Performance

Shares of NYSE GTES opened at $23.80 on Friday. The firm's 50-day moving average price is $26.05 and its 200-day moving average price is $25.75. Gates Industrial has a 1-year low of $20.88 and a 1-year high of $30.34. The firm has a market capitalization of $6.02 billion, a P/E ratio of 16.88 and a beta of 1.28. 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 (NYSE:GTES - Get Free Report) last issued its quarterly earnings data 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 return on equity of 10.11% and a net margin of 10.37%. The firm had revenue of $903.60 million during the quarter, compared to the consensus estimate of $904.77 million. During the same period in the prior year, the business posted $0.39 earnings per share. The company's quarterly revenue was up 5.6% compared to the same quarter last year. Equities research analysts anticipate that Gates Industrial will post 1.58 earnings per share for the current fiscal year.

Key Headlines Impacting Gates Industrial

Here are the key news stories impacting Gates Industrial this week:

• Positive Sentiment: Third-quarter adjusted earnings were $0.47 per share, exceeding analyst estimates of $0.44-$0.45 and rising from $0.39 a year earlier. Net sales increased 5.6% year over year to $903.6 million, broadly in line with expectations. Gates Industrial Reports Third-Quarter 2026 Results
• Positive Sentiment: Management raised its fiscal 2026 outlook and now expects adjusted EPS of $1.66 to $1.72. The company is also targeting approximately 6.5% core sales growth in the fourth quarter, suggesting continued demand momentum. Gates anticipates 2026 adjusted EPS and Q4 core growth
• Neutral Sentiment: Reported net income attributable to shareholders was $86.5 million, or $0.34 per diluted share. Core sales grew 5.5%, while the company posted a 10.37% net margin and 10.11% return on equity. Gates Industrial third-quarter earnings results
• Negative Sentiment: Revenue merely matched expectations, and the stock’s decline on unusually heavy trading suggests the earnings beat and guidance increase did not fully satisfy investors. The market may have been looking for a larger forecast upgrade, stronger margins, or more evidence that growth can accelerate beyond the current outlook. Gates Industrial Q3 income rises and raises FY26 guidance

About Gates Industrial

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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