Gates Industrial (NYSE:GTES) Hits New 12-Month High – Here’s What Happened

Gates Industrial Corp PLC (NYSE:GTES) shares reached a new 52-week high on Wednesday . The company traded as high as $19.07 and last traded at $18.77, with a volume of 217798 shares traded. The stock had previously closed at $18.26.

Wall Street Analysts Forecast Growth

GTES has been the subject of a number of recent analyst reports. The Goldman Sachs Group upped their price target on shares of Gates Industrial from $18.00 to $20.00 and gave the stock a “neutral” rating in a research report on Thursday, August 1st. Robert W. Baird dropped their price target on shares of Gates Industrial from $26.00 to $22.00 and set an “outperform” rating for the company in a research report on Thursday, August 1st. Royal Bank of Canada upgraded shares of Gates Industrial from a “sector perform” rating to an “outperform” rating and upped their price target for the stock from $20.00 to $22.00 in a research report on Monday, August 19th. Morgan Stanley assumed coverage on shares of Gates Industrial in a research report on Friday, September 6th. They set an “equal weight” rating and a $19.00 target price for the company. Finally, Evercore ISI upped their target price on shares of Gates Industrial from $15.00 to $16.00 and gave the stock an “in-line” rating in a research report on Monday, August 19th. Four investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. Based on data from MarketBeat, Gates Industrial presently has a consensus rating of “Moderate Buy” and a consensus price target of $19.40.

Gates Industrial Stock Up 4.3 %

The company has a market cap of $4.98 billion, a PE ratio of 20.10 and a beta of 1.40. The company’s 50 day moving average is $17.64 and its 200 day moving average is $17.10. The company has a current ratio of 3.11, a quick ratio of 2.20 and a debt-to-equity ratio of 0.68.

Gates Industrial (NYSE:GTES) last posted its quarterly earnings results on Wednesday, July 31st. The company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.33 by $0.01. The company had revenue of $885.50 million for the quarter, compared to the consensus estimate of $893.00 million. Gates Industrial had a net margin of 7.24% and a return on equity of 10.27%. As a group, analysts predict that Gates Industrial Corp PLC will post 1.23 earnings per share for the current fiscal year.

Gates Industrial declared that its Board of Directors has initiated a stock buyback program on Wednesday, July 31st that allows the company to buyback $250.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 5.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Gates Industrial news, Director Wilson S. Neely bought 11,952 shares of the company’s stock in a transaction on Wednesday, August 21st. The shares were bought at an average cost of $16.80 per share, for a total transaction of $200,793.60. Following the acquisition, the director now directly owns 6,000 shares in the company, valued at approximately $100,800. The trade was a -200.00 % increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 2.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in GTES. QRG Capital Management Inc. bought a new stake in shares of Gates Industrial in the 3rd quarter valued at about $609,000. Fort L.P. boosted its holdings in shares of Gates Industrial by 9.3% in the 3rd quarter. Fort L.P. now owns 14,423 shares of the company’s stock valued at $253,000 after buying an additional 1,222 shares in the last quarter. New York State Common Retirement Fund boosted its holdings in shares of Gates Industrial by 606.4% in the 3rd quarter. New York State Common Retirement Fund now owns 948,825 shares of the company’s stock valued at $16,652,000 after buying an additional 814,510 shares in the last quarter. New York State Teachers Retirement System boosted its holdings in shares of Gates Industrial by 463.0% in the 3rd quarter. New York State Teachers Retirement System now owns 95,223 shares of the company’s stock valued at $1,671,000 after buying an additional 78,310 shares in the last quarter. Finally, Integrated Advisors Network LLC boosted its holdings in shares of Gates Industrial by 5.0% in the 3rd quarter. Integrated Advisors Network LLC now owns 29,952 shares of the company’s stock valued at $526,000 after buying an additional 1,436 shares in the last quarter. 98.50% of the stock is currently owned by institutional investors.

About Gates Industrial

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.