Gates Industrial (NYSE:GTES) Trading Up 8.4% Following Strong Earnings

Key Points

• Gates Industrial shares rose 8.4% after the company reported quarterly EPS of $0.44, beating estimates by $0.02, while revenue of $941.6 million exceeded forecasts and increased 6.6% year over year.
• The company issued fiscal 2026 EPS guidance of $1.62–$1.70. Analysts maintain a “Moderate Buy” consensus, with an average price target of $31.50.
• Institutional investors own 98.5% of the stock, with several major funds increasing their positions during recent quarters.

Gates Industrial Corporation PLC (NYSE:GTES - Get Free Report) shares rose 8.4% on Friday following a stronger than expected earnings report. The stock traded as high as $27.35 and last traded at $27.9410. 998,520 shares traded hands during mid-day trading, a decline of 56% from the average daily volume of 2,250,140 shares. The stock had previously closed at $25.78.

The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.02. The business had revenue of $941.60 million during the quarter, compared to analyst estimates of $925.44 million. Gates Industrial had a return on equity of 10.00% and a net margin of 7.23%.Gates Industrial's revenue for the quarter was up 6.6% compared to the same quarter last year. During the same period last year, the company earned $0.39 EPS. Gates Industrial has set its FY 2026 guidance at 1.620-1.700 EPS.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Robert W. Baird lowered their target price on shares of Gates Industrial from $39.00 to $37.00 and set an "outperform" rating for the company in a research note on Monday, May 4th. Wolfe Research reaffirmed an "outperform" rating and set a $33.00 target price on shares of Gates Industrial in a research note on Thursday, July 9th. Weiss Ratings reissued a "hold (c+)" rating on shares of Gates Industrial in a research note on Monday, June 29th. Morgan Stanley increased their price target on Gates Industrial from $27.00 to $28.00 and gave the stock an "equal weight" rating in a report on Friday, May 29th. Finally, Royal Bank Of Canada increased their price target on Gates Industrial from $30.00 to $33.00 and gave the stock an "outperform" rating in a report on Thursday, July 16th. Seven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $31.50.

Institutional Investors Weigh In On Gates Industrial

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Paradice Investment Management LLC lifted its holdings in Gates Industrial by 8.1% during the fourth quarter. Paradice Investment Management LLC now owns 1,292,301 shares of the company's stock worth $27,746,000 after acquiring an additional 97,382 shares during the period. SG Americas Securities LLC increased its position in shares of Gates Industrial by 46.7% during the 4th quarter. SG Americas Securities LLC now owns 70,186 shares of the company's stock valued at $1,507,000 after purchasing an additional 22,338 shares during the last quarter. Van Berkom & Associates Inc. bought a new stake in shares of Gates Industrial during the 4th quarter worth $68,614,000. Impax Asset Management Group plc raised its stake in shares of Gates Industrial by 48.8% during the 4th quarter. Impax Asset Management Group plc now owns 472,713 shares of the company's stock worth $10,149,000 after purchasing an additional 155,000 shares during the period. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in shares of Gates Industrial by 62.8% in the 1st 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 last quarter. Hedge funds and other institutional investors own 98.50% of the company's stock.

Gates Industrial Stock Performance

The company's 50-day moving average is $26.63 and its two-hundred day moving average is $25.36. The company has a quick ratio of 2.66, a current ratio of 3.67 and a debt-to-equity ratio of 0.61. The company has a market cap of $7.01 billion, a P/E ratio of 28.82 and a beta of 1.25.

About Gates Industrial

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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