Gates Industrial (NYSE:GTES) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Gates Industrial from a “buy” to a “hold” rating, adding a fresh cautionary note for investors in NYSE:GTES.
• Other analysts remain generally positive, with the stock carrying an overall “Moderate Buy” consensus and an average price target of $31.36, though recent target changes have been mixed.
• Gates Industrial reported better-than-expected EPS of $0.35 on May 1, but revenue came in slightly below estimates and year-over-year revenue growth was only 0.4%.

Gates Industrial (NYSE:GTES - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

A number of other research firms have also issued reports on GTES. Morgan Stanley lifted their price objective on shares of Gates Industrial from $27.00 to $28.00 and gave the company an "equal weight" rating in a research note on Friday, May 29th. Royal Bank Of Canada upped their target price on shares of Gates Industrial from $30.00 to $33.00 and gave the company an "outperform" rating in a research note on Thursday, July 16th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Gates Industrial in a report on Monday, June 29th. Wolfe Research reaffirmed an "outperform" rating and set a $33.00 price target on shares of Gates Industrial in a research note on Thursday, July 9th. Finally, Barclays cut their price objective on shares of Gates Industrial from $32.00 to $28.00 and set an "overweight" rating on the stock in a report on Wednesday, April 1st. Eight investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, Gates Industrial has an average rating of "Moderate Buy" and a consensus target price of $31.36.

Gates Industrial Price Performance

Shares of NYSE GTES opened at $26.89 on Friday. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.67 and a quick ratio of 2.66. Gates Industrial has a 1-year low of $20.88 and a 1-year high of $29.17. The company has a market capitalization of $6.83 billion, a price-to-earnings ratio of 28.01 and a beta of 1.25. The business has a 50-day moving average of $26.47 and a 200-day moving average of $25.25.

Gates Industrial (NYSE:GTES - Get Free Report) last announced its earnings results on Friday, May 1st. The company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.32 by $0.03. The business had revenue of $851.10 million for the quarter, compared to the consensus estimate of $859.72 million. Gates Industrial had a return on equity of 10.00% and a net margin of 7.23%.The company's revenue was up .4% on a year-over-year basis. During the same period last year, the business posted $0.36 EPS. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. On average, equities analysts anticipate that Gates Industrial will post 1.53 EPS for the current fiscal year.

Hedge Funds Weigh In On Gates Industrial

A number of hedge funds and other institutional investors have recently bought and sold shares of GTES. JPMorgan Chase & Co. grew its position in shares of Gates Industrial by 98.7% during the fourth quarter. JPMorgan Chase & Co. now owns 8,373,294 shares of the company's stock worth $179,775,000 after acquiring an additional 4,158,341 shares during the last quarter. Norges Bank bought a new stake in Gates Industrial in the 4th quarter valued at about $74,843,000. Van Berkom & Associates Inc. bought a new stake in Gates Industrial in the 4th quarter valued at about $68,614,000. Adage Capital Partners GP L.L.C. acquired a new position in Gates Industrial during the 2nd quarter valued at about $32,255,000. Finally, Nuveen LLC grew its position in Gates Industrial by 280.0% in the 4th quarter. Nuveen LLC now owns 1,725,274 shares of the company's stock worth $37,042,000 after purchasing an additional 1,271,248 shares during the last quarter. 98.50% of the stock is currently owned by institutional investors and hedge funds.

Gates Industrial Company 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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