Gates Industrial (NYSE:GTES) Upgraded to "Strong-Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Gates Industrial to “strong-buy” from “hold.” Overall, nine analysts rate the stock Buy and three rate it Hold, producing a consensus “Moderate Buy” rating with an average price target of $33.
• Gates Industrial reported quarterly EPS of $0.44, beating estimates of $0.42, while revenue reached $941.6 million versus expectations of $927.28 million. Revenue increased 6.6% year over year, and full-year 2026 guidance was set at $1.62–$1.70 EPS.
• The stock opened at $28.31, compared with a 12-month range of $20.88 to $30.34. Institutional investors own a substantial 98.5% of shares, while an insider recently sold 6,000 shares at an average price of $29.56.

Gates Industrial (NYSE:GTES - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Saturday.

Several other analysts have also recently commented on GTES. Wolfe Research restated an "outperform" rating and issued a $33.00 target price on shares of Gates Industrial in a research note on Thursday, July 9th. Royal Bank Of Canada boosted their price target on shares of Gates Industrial from $33.00 to $34.00 and gave the stock an "outperform" rating in a research note on Monday, August 3rd. Robert W. Baird increased their price target on shares of Gates Industrial from $37.00 to $39.00 and gave the stock an "outperform" rating in a report on Monday, August 3rd. Morgan Stanley boosted their target price on Gates Industrial from $27.00 to $28.00 and gave the stock an "equal weight" rating in a research report on Friday, May 29th. Finally, Wells Fargo & Company increased their target price on Gates Industrial from $26.00 to $30.00 and gave the stock an "equal weight" rating in a research note on Monday, August 3rd. Nine analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $33.00.

Gates Industrial Trading Down 1.0%

NYSE:GTES opened at $28.31 on Friday. Gates Industrial has a 12-month low of $20.88 and a 12-month high of $30.34. The company has a current ratio of 3.24, a quick ratio of 2.36 and a debt-to-equity ratio of 0.58. The stock's 50 day simple moving average is $27.07 and its 200-day simple moving average is $25.61. The firm has a market cap of $7.17 billion, a P/E ratio of 20.08 and a beta of 1.25.

Gates Industrial (NYSE:GTES - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.42 by $0.02. The firm had revenue of $941.60 million during the quarter, compared to the consensus estimate of $927.28 million. Gates Industrial had a return on equity of 10.11% and a net margin of 10.37%.The company's revenue for the quarter was up 6.6% on a year-over-year basis. During the same period last year, the company earned $0.39 earnings per share. Gates Industrial has set its FY 2026 guidance at 1.620-1.700 EPS. Equities analysts anticipate that Gates Industrial will post 1.53 EPS for the current year.

Insider Buying and Selling at Gates Industrial

In other Gates Industrial news, Director Peifang Zhang sold 6,000 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $29.56, for a total transaction of $177,360.00. Following the completion of the transaction, the director directly owned 44,044 shares in the company, valued at approximately $1,301,940.64. This trade represents a 11.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 2.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Gates Industrial

A number of hedge funds and other institutional investors have recently made changes to their positions in GTES. Paradice Investment Management LLC grew its holdings in Gates Industrial by 8.1% during the 4th quarter. Paradice Investment Management LLC now owns 1,292,301 shares of the company's stock valued at $27,746,000 after purchasing an additional 97,382 shares in the last quarter. Van Berkom & Associates Inc. purchased a new stake in Gates Industrial during the 4th quarter worth $68,614,000. Kennedy Capital Management LLC lifted its holdings in Gates Industrial by 6.7% in the 4th quarter. Kennedy Capital Management LLC now owns 1,528,525 shares of the company's stock worth $32,817,000 after buying an additional 96,392 shares in the last quarter. Y Intercept Hong Kong Ltd boosted its position in Gates Industrial by 708.1% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 257,930 shares of the company's stock valued at $5,832,000 after buying an additional 226,012 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in Gates Industrial by 62.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,251,585 shares of the company's stock valued at $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 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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