Diversified Management Inc. Sells 74,127 Shares of Gates Industrial Corporation PLC $GTES

Key Points

• Diversified Management Inc. cut its Gates Industrial stake by 88.4%, selling 74,127 shares in the second quarter and retaining 9,770 shares valued at approximately $273,000. Institutional investors collectively own 98.5% of the company.
• Analysts maintain a positive outlook, with nine Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $33, above the reported share price of $27.89.
• Gates Industrial exceeded quarterly expectations, reporting $0.44 in EPS versus the $0.42 estimate and $941.6 million in revenue, up 6.6% year over year. The company issued fiscal 2026 EPS guidance of $1.62–$1.70.

Diversified Management Inc. decreased its holdings in shares of Gates Industrial Corporation PLC (NYSE:GTES - Free Report) by 88.4% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 9,770 shares of the company's stock after selling 74,127 shares during the quarter. Diversified Management Inc.'s holdings in Gates Industrial were worth $273,000 as of its most recent SEC filing.

Other hedge funds have also recently bought and sold shares of the company. Los Angeles Capital Management LLC acquired a new position in Gates Industrial during the fourth quarter worth $26,000. Transamerica Financial Advisors LLC grew its position in shares of Gates Industrial by 51.9% in the 4th quarter. Transamerica Financial Advisors LLC now owns 1,577 shares of the company's stock valued at $34,000 after acquiring an additional 539 shares during the period. Fifth Third Bancorp increased its stake in shares of Gates Industrial by 46.3% during the 1st quarter. Fifth Third Bancorp now owns 1,624 shares of the company's stock worth $37,000 after purchasing an additional 514 shares during the last quarter. Parallel Advisors LLC lifted its stake 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 purchasing an additional 694 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. grew its holdings in Gates Industrial by 273.2% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,911 shares of the company's stock worth $67,000 after purchasing an additional 2,131 shares during the period. 98.50% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of analysts have recently issued reports on GTES shares. JPMorgan Chase & Co. raised their price objective on Gates Industrial from $32.00 to $34.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. Morgan Stanley lifted their price objective on shares of Gates Industrial from $27.00 to $28.00 and gave the stock an "equal weight" rating in a research report on Friday, May 29th. Wells Fargo & Company upped their price objective on shares of Gates Industrial from $26.00 to $30.00 and gave the company an "equal weight" rating in a report on Monday, August 3rd. Royal Bank Of Canada increased their price objective on shares of Gates Industrial from $33.00 to $34.00 and gave the company an "outperform" rating in a research report on Monday, August 3rd. Finally, Wolfe Research reaffirmed an "outperform" rating and set a $33.00 target price on shares of Gates Industrial in a report on Thursday, July 9th. Nine investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $33.00.

Gates Industrial Price Performance

NYSE:GTES opened at $27.89 on Thursday. Gates Industrial Corporation PLC has a 52 week low of $20.88 and a 52 week high of $30.34. 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 firm's 50-day simple moving average is $27.19 and its 200 day simple moving average is $25.73. The firm has a market cap of $7.06 billion, a price-to-earnings ratio of 19.78 and a beta of 1.25.

Gates Industrial (NYSE:GTES - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.02. The business had revenue of $941.60 million during the quarter, compared to analysts' expectations of $927.28 million. Gates Industrial had a return on equity of 10.11% and a net margin of 10.37%.The firm's revenue for the quarter was up 6.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.39 earnings per share. Gates Industrial has set its FY 2026 guidance at 1.620-1.700 EPS. As a group, sell-side analysts predict that Gates Industrial Corporation PLC will post 1.53 earnings per share for the current year.

Insider Buying and Selling

In related 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 transaction, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 2.80% of the stock is currently owned by company insiders.

Gates Industrial Profile

Gates Industrial Corporation PLC NYSE: GTES is a leading global manufacturer of engineered power transmission belts and fluid power products. The company's portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.

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