Gates Industrial (NYSE:GTES) Hits New 12-Month High - Still a Buy?

Key Points

• Gates Industrial's stock reached a new 52-week high of $25.88, reflecting a trading volume of 199,737 shares.
• Several analysts have recently upgraded their ratings on Gates Industrial, with a consensus target price of $27.50, indicating optimism about its future performance.
• The company reported a quarterly EPS of $0.39, beating estimates and had revenues of $883.70 million, although showing a slight year-over-year decrease in revenue.

Gates Industrial Corporation PLC (NYSE:GTES - Get Free Report)'s share price hit a new 52-week high during trading on Monday . The stock traded as high as $25.81 and last traded at $25.88, with a volume of 199737 shares changing hands. The stock had previously closed at $25.23.

Analyst Ratings Changes

GTES has been the topic of a number of research analyst reports. The Goldman Sachs Group boosted their target price on Gates Industrial from $20.00 to $23.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 27th. KeyCorp restated an "overweight" rating and issued a $30.00 target price (up previously from $26.00) on shares of Gates Industrial in a research note on Thursday, July 31st. Zacks Research upgraded Gates Industrial from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 20th. JPMorgan Chase & Co. began coverage on Gates Industrial in a report on Monday. They issued an "overweight" rating and a $35.00 price objective on the stock. Finally, Morgan Stanley lowered their target price on Gates Industrial from $24.00 to $22.00 and set an "equal weight" rating on the stock in a report on Thursday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $27.50.

Gates Industrial Trading Up 2.1%

The company has a debt-to-equity ratio of 0.66, a current ratio of 3.46 and a quick ratio of 2.46. The business's 50 day moving average price is $23.99 and its 200-day moving average price is $21.42. The firm has a market capitalization of $6.63 billion, a price-to-earnings ratio of 33.01 and a beta of 1.24.

Gates Industrial (NYSE:GTES - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $0.39 EPS for the quarter, topping the consensus estimate of $0.38 by $0.01. The business had revenue of $883.70 million for the quarter, compared to analyst estimates of $873.34 million. Gates Industrial had a return on equity of 10.17% and a net margin of 5.98%.The company's quarterly revenue was down .2% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.36 EPS. Gates Industrial has set its FY 2025 guidance at 1.440-1.520 EPS. Equities analysts forecast that Gates Industrial Corporation PLC will post 1.36 EPS for the current fiscal year.

Institutional Trading of Gates Industrial

Large investors have recently modified their holdings of the business. Advisory Services Network LLC grew its stake in Gates Industrial by 5.0% in the second quarter. Advisory Services Network LLC now owns 32,722 shares of the company's stock worth $812,000 after purchasing an additional 1,551 shares in the last quarter. Public Sector Pension Investment Board grew its stake in Gates Industrial by 8.5% in the second quarter. Public Sector Pension Investment Board now owns 782,148 shares of the company's stock worth $18,013,000 after purchasing an additional 61,308 shares in the last quarter. Evergreen Capital Management LLC acquired a new position in Gates Industrial in the second quarter worth about $272,000. Corient Private Wealth LLC lifted its position in shares of Gates Industrial by 7.0% in the 2nd quarter. Corient Private Wealth LLC now owns 176,665 shares of the company's stock worth $4,069,000 after buying an additional 11,542 shares during the last quarter. Finally, State of Tennessee Department of Treasury lifted its position in shares of Gates Industrial by 14.4% in the 2nd quarter. State of Tennessee Department of Treasury now owns 95,067 shares of the company's stock worth $2,189,000 after buying an additional 11,979 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 designs and manufactures power transmission equipment. Its products serves harsh and hazardous industries such as agriculture, construction, manufacturing and energy, to everyday consumer applications such as printers, power washers, automatic doors and vacuum cleaners and virtually every form of transportation.

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