Gates Industrial Sees Unusually High Options Volume (NYSE:GTES)

Key Points

• GTES saw unusually heavy options activity on Friday, with 15,817 put options traded — about 787% above its average daily volume.
• The stock edged higher by 2.2% to $26.59, while the company’s recent quarter beat EPS expectations at $0.35 versus $0.32, though revenue came in slightly below forecasts.
• Analysts remain cautiously positive overall: the stock carries a consensus “Moderate Buy” rating with an average price target of $31.18, even as recent target and rating updates were mixed.

Gates Industrial Corporation PLC (NYSE:GTES - Get Free Report) was the target of unusually large options trading activity on Friday. Stock investors bought 15,817 put options on the stock. This represents an increase of 787% compared to the average daily volume of 1,784 put options.

Hedge Funds Weigh In On Gates Industrial

A number of hedge funds have recently bought and sold shares of the company. Allspring Global Investments Holdings LLC increased its holdings in shares of Gates Industrial by 5.3% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 14,169,457 shares of the company's stock worth $312,578,000 after purchasing an additional 717,353 shares during the last quarter. Paradice Investment Management LLC grew its holdings in shares of Gates Industrial by 8.1% in the fourth 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. Penn Capital Management Company LLC purchased a new position in shares of Gates Industrial in the third quarter valued at $15,162,000. Franklin Resources Inc. increased its position in Gates Industrial by 22.3% in the third quarter. Franklin Resources Inc. now owns 6,923,169 shares of the company's stock worth $171,833,000 after purchasing an additional 1,261,849 shares during the last quarter. Finally, SG Americas Securities LLC increased its position in Gates Industrial by 46.7% in the fourth quarter. SG Americas Securities LLC now owns 70,186 shares of the company's stock worth $1,507,000 after purchasing an additional 22,338 shares during the last quarter. Institutional investors own 98.50% of the company's stock.

Gates Industrial Stock Up 2.2%

Shares of GTES traded up $0.56 during mid-day trading on Friday, reaching $26.59. The company had a trading volume of 266,987 shares, compared to its average volume of 2,297,411. The company has a debt-to-equity ratio of 0.61, a quick ratio of 2.66 and a current ratio of 3.67. The company has a market capitalization of $6.75 billion, a price-to-earnings ratio of 27.70 and a beta of 1.25. The firm has a 50-day moving average price of $26.22 and a 200 day moving average price of $24.90. Gates Industrial has a 52 week low of $20.88 and a 52 week high of $29.17.

Gates Industrial (NYSE:GTES - Get Free Report) last announced its quarterly earnings data on Friday, May 1st. The company reported $0.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.32 by $0.03. Gates Industrial had a return on equity of 10.00% and a net margin of 7.23%.The business had revenue of $851.10 million during the quarter, compared to analysts' expectations of $859.72 million. During the same quarter in the previous year, the business earned $0.36 earnings per share. The firm's quarterly revenue was up .4% compared to the same quarter last year. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. On average, sell-side analysts forecast that Gates Industrial will post 1.55 EPS for the current year.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. Morgan Stanley upped their target price on Gates Industrial from $27.00 to $28.00 and gave the stock an "equal weight" rating in a report on Friday, May 29th. Wolfe Research reaffirmed an "outperform" rating and issued a $33.00 price target on shares of Gates Industrial in a research note on Thursday. Robert W. Baird decreased their price objective on Gates Industrial from $39.00 to $37.00 and set an "outperform" rating for the company in a report on Monday, May 4th. Wall Street Zen lowered Gates Industrial from a "strong-buy" rating to a "buy" rating in a research report on Sunday, May 10th. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of Gates Industrial in a report on Monday, June 29th. Eight equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $31.18.

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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