Gates Industrial (NYSE:GTES) Hits New 12-Month High Following Better-Than-Expected Earnings

Gates Industrial Corporation PLC (NYSE:GTES)’s share price reached a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $27.38 and last traded at $26.5810, with a volume of 3947098 shares changing hands. The stock had previously closed at $26.76.

The company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.01. Gates Industrial had a net margin of 6.93% and a return on equity of 10.38%. During the same period in the previous year, the firm earned $0.36 earnings per share. Gates Industrial’s quarterly revenue was up 3.2% compared to the same quarter last year. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS.

Analysts Set New Price Targets

A number of analysts have recently commented on GTES shares. JPMorgan Chase & Co. cut their price target on Gates Industrial from $33.00 to $32.00 and set an “overweight” rating on the stock in a report on Tuesday, December 16th. Citigroup reissued a “buy” rating on shares of Gates Industrial in a research report on Monday, January 12th. Royal Bank Of Canada reduced their price target on Gates Industrial from $29.00 to $26.00 and set an “outperform” rating for the company in a research report on Thursday, October 30th. UBS Group decreased their price target on shares of Gates Industrial from $29.00 to $28.00 and set a “buy” rating for the company in a research note on Monday, January 5th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Gates Industrial in a research report on Monday, December 29th. Six research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, Gates Industrial has an average rating of “Moderate Buy” and a consensus target price of $27.09.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. JPMorgan Chase & Co. grew its position in Gates Industrial by 98.7% during the fourth quarter. JPMorgan Chase & Co. now owns 8,373,294 shares of the company’s stock worth $179,775,000 after buying an additional 4,158,341 shares in the last quarter. Norges Bank bought a new position in Gates Industrial in the 2nd quarter valued at about $80,713,000. Van Berkom & Associates Inc. acquired a new position in shares of Gates Industrial in the 4th quarter valued at approximately $68,614,000. Adage Capital Partners GP L.L.C. bought a new stake in shares of Gates Industrial during the 2nd quarter worth approximately $32,255,000. Finally, Vanguard Group Inc. boosted its position in shares of Gates Industrial by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 26,753,365 shares of the company’s stock worth $664,019,000 after acquiring an additional 1,281,339 shares in the last quarter. Institutional investors and hedge funds own 98.50% of the company’s stock.

Gates Industrial Price Performance

The business’s 50 day moving average is $22.86 and its 200-day moving average is $23.80. The firm has a market capitalization of $6.87 billion, a P/E ratio of 29.21 and a beta of 1.27. The company has a quick ratio of 2.50, a current ratio of 3.52 and a debt-to-equity ratio of 0.61.

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.