Gates Industrial (NYSE:GTES) Hits New 12-Month High – Still a Buy?

Gates Industrial Corporation PLC (NYSE:GTES)’s stock price reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $28.87 and last traded at $29.0670, with a volume of 212598 shares traded. The stock had previously closed at $27.25.

Wall Street Analyst Weigh In

GTES has been the subject of a number of research reports. Weiss Ratings cut Gates Industrial from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, April 1st. Robert W. Baird cut their target price on shares of Gates Industrial from $39.00 to $37.00 and set an “outperform” rating on the stock in a report on Monday, May 4th. Barclays reduced their price target on shares of Gates Industrial from $32.00 to $28.00 and set an “overweight” rating for the company in a research report on Wednesday, April 1st. Wall Street Zen downgraded shares of Gates Industrial from a “strong-buy” rating to a “buy” rating in a research report on Sunday, May 10th. Finally, Morgan Stanley lifted their price objective on shares of Gates Industrial from $27.00 to $28.00 and gave the company an “equal weight” rating in a research note on Friday, May 29th. Seven investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $31.00.

Gates Industrial Stock Performance

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 stock has a fifty day moving average price of $25.84 and a 200-day moving average price of $24.48. The firm has a market cap of $7.32 billion, a price-to-earnings ratio of 30.04 and a beta of 1.27.

Gates Industrial (NYSE:GTES) last issued its quarterly earnings results on Friday, May 1st. The company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.03. Gates Industrial had a return on equity of 10.00% and a net margin of 7.23%.The firm had revenue of $851.10 million during the quarter, compared to the consensus estimate of $859.72 million. During the same period last year, the company earned $0.36 earnings per share. The company’s revenue for the quarter was up .4% on a year-over-year basis. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. On average, analysts expect that Gates Industrial Corporation PLC will post 1.55 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Los Angeles Capital Management LLC purchased a new stake in Gates Industrial in the 4th quarter valued at approximately $26,000. Transamerica Financial Advisors LLC raised its stake in shares of Gates Industrial by 51.9% during the 4th quarter. Transamerica Financial Advisors LLC now owns 1,577 shares of the company’s stock worth $34,000 after buying an additional 539 shares in the last quarter. Fifth Third Bancorp lifted its holdings in shares of Gates Industrial by 46.3% in the 1st quarter. Fifth Third Bancorp now owns 1,624 shares of the company’s stock valued at $37,000 after buying an additional 514 shares during the period. Assetmark Inc. boosted its stake in shares of Gates Industrial by 38.1% in the third quarter. Assetmark Inc. now owns 2,448 shares of the company’s stock valued at $61,000 after buying an additional 676 shares in the last quarter. Finally, Parallel Advisors LLC boosted its stake in shares of Gates Industrial by 37.7% in the first quarter. Parallel Advisors LLC now owns 2,536 shares of the company’s stock valued at $57,000 after buying an additional 694 shares in the last quarter. 98.50% of the stock is owned by hedge funds and other institutional investors.

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.