Gates Industrial Corporation PLC $GTES Stock: Penn Capital Management Company LLC Decreases Holdings

Key Points

• Penn Capital reduced its Gates Industrial stake by 7.7% in the third quarter, selling 64,682 shares; it retained 774,993 shares valued at about $20.3 million.
• Gates Industrial reported quarterly EPS of $0.47, beating estimates of $0.44. Revenue rose 5.6% year over year to $903.6 million, slightly below consensus.
• Analysts’ average rating was “Moderate Buy”, with an average price target of $32.18; nine analysts rated the stock Buy and three rated it Hold.

Penn Capital Management Company LLC decreased its position in shares of Gates Industrial Corporation PLC (NYSE:GTES - Free Report) by 7.7% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 774,993 shares of the company's stock after selling 64,682 shares during the quarter. Gates Industrial makes up about 1.5% of Penn Capital Management Company LLC's holdings, making the stock its 18th largest position. Penn Capital Management Company LLC owned 0.31% of Gates Industrial worth $20,343,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in the company. Dimensional Fund Advisors LP boosted 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 valued at $261,040,000 after purchasing an additional 295,706 shares during the period. Janus Henderson Group PLC grew its stake in Gates Industrial by 3.8% during the 1st quarter. Janus Henderson Group PLC now owns 5,230,159 shares of the company's stock worth $118,252,000 after buying an additional 193,896 shares during the last quarter. Bank of New York Mellon Corp increased its position in Gates Industrial by 1.7% during the first quarter. Bank of New York Mellon Corp now owns 2,346,443 shares of the company's stock worth $53,053,000 after buying an additional 38,645 shares during the period. Arrowstreet Capital Limited Partnership increased its position in Gates Industrial by 62.8% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,251,585 shares of the company's stock worth $50,908,000 after buying an additional 868,734 shares during the period. Finally, Quantinno Capital Management LP increased its position in Gates Industrial by 12.3% during the first quarter. Quantinno Capital Management LP now owns 2,101,565 shares of the company's stock worth $47,516,000 after buying an additional 230,147 shares during the period. Hedge funds and other institutional investors own 98.50% of the company's stock.

Gates Industrial Stock Performance

NYSE GTES opened at $25.38 on Tuesday. The firm has a market cap of $6.37 billion, a P/E ratio of 17.62 and a beta of 1.33. Gates Industrial Corporation PLC has a 52-week low of $20.88 and a 52-week high of $30.34. The business's 50-day moving average price is $25.84 and its 200 day moving average price is $25.80. The company has a quick ratio of 2.40, a current ratio of 3.41 and a debt-to-equity ratio of 0.57.

Gates Industrial (NYSE:GTES - Get Free Report) last posted its quarterly earnings data on Friday, October 30th. The company reported $0.47 EPS for the quarter, beating 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 during the quarter, compared to the consensus estimate of $904.77 million. During the same period in the prior year, the business earned $0.39 EPS. The firm's revenue was up 5.6% compared to the same quarter last year. On average, equities research analysts expect that Gates Industrial Corporation PLC will post 1.59 earnings per share for the current year.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Wells Fargo & Company reduced their price objective on Gates Industrial from $30.00 to $28.00 and set an "equal weight" rating for the company in a research note on Monday, November 2nd. Wall Street Zen lowered shares of Gates Industrial from a "strong-buy" rating to a "buy" rating in a research report on Saturday, October 10th. Robert W. Baird lifted their target price on shares of Gates Industrial from $39.00 to $40.00 and gave the company an "outperform" rating in a report on Monday, November 2nd. JPMorgan Chase & Co. upped their price target on shares of Gates Industrial from $32.00 to $34.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. Finally, DA Davidson reduced their price target on shares of Gates Industrial from $29.00 to $27.00 and set a "neutral" rating for the company in a research report on Monday, November 2nd. Nine investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Gates Industrial currently has an average rating of "Moderate Buy" and an average target price of $32.18.

About Gates Industrial

Gates Industrial Corporation plc designs and manufactures engineered power-transmission and fluid-power solutions. Its products include belts and related components, as well as hoses and hydraulic systems used to transfer power and fluids in equipment and vehicles.

The company serves customers across a range of industrial and mobility markets, including manufacturing, construction, agriculture, transportation and energy. Its products are used in both original-equipment applications and replacement markets.

Gates traces its history to 1911, when it was established as the Gates Rubber Company in Colorado.

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