Gates Industrial Corporation PLC $GTES Stock: Van Berkom & Associates Inc. Trims Stake

Key Points

• Van Berkom & Associates cut its Gates Industrial stake by 5.6%, selling 173,025 shares; it still held about 2.93 million shares worth $76.9 million. Institutional investors collectively owned 98.5% of the company’s stock.
• Analyst sentiment remained positive: nine analysts rated GTES a Buy and three a Hold, resulting in a Moderate Buy consensus and a $32.18 average price target.
• Gates Industrial reported quarterly earnings of $0.47 per share, beating estimates of $0.44. Revenue rose 5.6% year over year to $903.6 million, slightly below analyst expectations.

Van Berkom & Associates Inc. cut its stake in shares of Gates Industrial Corporation PLC (NYSE:GTES - Free Report) by 5.6% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 2,934,546 shares of the company's stock after selling 173,025 shares during the quarter. Gates Industrial comprises approximately 2.7% of Van Berkom & Associates Inc.'s portfolio, making the stock its 8th biggest position. Van Berkom & Associates Inc. owned approximately 1.17% of Gates Industrial worth $76,885,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also recently modified their holdings of the company. Dimensional Fund Advisors LP increased its stake in Gates Industrial by 2.6% during 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 in the last quarter. Janus Henderson Group PLC raised its holdings in Gates Industrial by 3.8% in the first 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 raised its holdings in Gates Industrial by 1.7% in 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 last quarter. Arrowstreet Capital Limited Partnership lifted its stake in shares of Gates Industrial by 62.8% in 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 in the last quarter. Finally, Quantinno Capital Management LP lifted its stake in shares of Gates Industrial by 12.3% in 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 in the last quarter. Hedge funds and other institutional investors own 98.50% of the company's stock.

Wall Street Analysts Forecast Growth

GTES has been the topic of a number of recent analyst reports. Wells Fargo & Company cut their price target on shares of Gates Industrial from $30.00 to $28.00 and set an "equal weight" rating on the stock in a report on Monday, November 2nd. Wall Street Zen downgraded shares of Gates Industrial from a "strong-buy" rating to a "buy" rating in a research report on Saturday, October 10th. Robert W. Baird boosted their price objective on shares of Gates Industrial from $39.00 to $40.00 and gave the stock an "outperform" rating in a report on Monday, November 2nd. KeyCorp upped their price objective on Gates Industrial from $31.00 to $34.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. Finally, Royal Bank Of Canada upped their price objective on Gates Industrial from $33.00 to $34.00 and gave the company an "outperform" rating in a research report on Monday, August 3rd. Nine investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Gates Industrial has a consensus rating of "Moderate Buy" and a consensus price target of $32.18.

Gates Industrial Trading Up 5.3%

Gates Industrial stock opened at $25.38 on Tuesday. 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 Corporation PLC has a one year low of $20.88 and a one year high of $30.34. The stock has a market capitalization of $6.37 billion, a PE ratio of 17.62 and a beta of 1.33. The business's fifty day moving average is $25.84 and its 200 day moving average is $25.80.

Gates Industrial (NYSE:GTES - Get Free Report) last issued its earnings results on Friday, October 30th. The company reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates of $0.44 by $0.03. Gates Industrial had a return on equity of 10.42% and a net margin of 10.37%. The business had revenue of $903.60 million during the quarter, compared to analyst estimates of $904.77 million. During the same quarter in the previous year, the firm earned $0.39 EPS. Gates Industrial's revenue was up 5.6% on a year-over-year basis. On average, sell-side analysts predict that Gates Industrial Corporation PLC will post 1.59 EPS for the current year.

Gates Industrial Profile

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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