Gates Industrial (NYSE:GTES) Lowered to "Buy" Rating by Wall Street Zen

Key Points

• Gates Industrial (NYSE: GTES) was downgraded from a "strong-buy" to a "buy" rating by analysts at Wall Street Zen, indicating a potential shift in investor sentiment.
• Despite the downgrade, other brokerages have issued more favorable ratings, with Zacks Research upgrading the stock to "strong-buy" and several firms raising their price targets.
• In its recent quarterly earnings report, Gates Industrial surpassed earnings expectations with a net revenue of $883.7 million, despite a slight decrease compared to the previous year.

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

A number of other brokerages also recently issued reports on GTES. Zacks Research upgraded Gates Industrial from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 20th. UBS Group raised their price target on shares of Gates Industrial from $27.00 to $30.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. KeyCorp reaffirmed an "overweight" rating and issued a $30.00 price target (up from $26.00) on shares of Gates Industrial in a research note on Thursday, July 31st. JPMorgan Chase & Co. initiated coverage on shares of Gates Industrial in a research note on Monday, August 25th. They issued an "overweight" rating and a $35.00 price target on the stock. Finally, Royal Bank Of Canada raised their price target on shares of Gates Industrial from $28.00 to $29.00 and gave the company an "outperform" rating in a research note on Thursday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, Gates Industrial presently has a consensus rating of "Moderate Buy" and an average price target of $28.18.

Gates Industrial Stock Performance

Shares of NYSE GTES traded up $0.41 during mid-day trading on Friday, hitting $24.89. The stock had a trading volume of 2,012,783 shares, compared to its average volume of 2,271,632. The company has a debt-to-equity ratio of 0.66, a quick ratio of 2.46 and a current ratio of 3.46. The company has a 50 day moving average of $24.99 and a two-hundred day moving average of $22.10. Gates Industrial has a twelve month low of $14.70 and a twelve month high of $26.42. The firm has a market cap of $6.41 billion, a PE ratio of 31.90 and a beta of 1.25.

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

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Corient Private Wealth LLC lifted its stake in Gates Industrial by 6.8% in the 2nd quarter. Corient Private Wealth LLC now owns 176,351 shares of the company's stock worth $4,061,000 after purchasing an additional 11,228 shares in the last quarter. Texas Permanent School Fund Corp lifted its stake in Gates Industrial by 19.6% in the 2nd quarter. Texas Permanent School Fund Corp now owns 140,317 shares of the company's stock worth $3,232,000 after purchasing an additional 23,032 shares in the last quarter. Advisory Services Network LLC lifted its stake in Gates Industrial by 5.0% in the 2nd 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 lifted its stake in Gates Industrial by 8.5% in the 2nd 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. Finally, Evergreen Capital Management LLC purchased a new position in Gates Industrial in the 2nd quarter worth approximately $272,000. 98.50% of the stock is owned by hedge funds and other institutional investors.

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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