Gates Industrial (NYSE:GTES) Trading Up 8.4% on Earnings Beat

Shares of Gates Industrial Corporation PLC (NYSE:GTES) shot up 8.4% during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $27.35 and last traded at $27.9410. Approximately 998,520 shares traded hands during trading, a decline of 56% from the average daily volume of 2,250,140 shares. The stock had previously closed at $25.78.

The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.42 by $0.02. The business had revenue of $941.60 million during the quarter, compared to the consensus estimate of $925.44 million. Gates Industrial had a return on equity of 10.00% and a net margin of 7.23%.The business’s revenue for the quarter was up 6.6% on a year-over-year basis. During the same period last year, the business posted $0.39 earnings per share. Gates Industrial has set its FY 2026 guidance at 1.620-1.700 EPS.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on GTES shares. Wall Street Zen lowered Gates Industrial from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Morgan Stanley increased their target price on Gates Industrial from $27.00 to $28.00 and gave the company an “equal weight” rating in a report on Friday, May 29th. Royal Bank Of Canada increased their price objective on shares of Gates Industrial from $30.00 to $33.00 and gave the stock an “outperform” rating in a research note on Thursday, July 16th. Wolfe Research restated an “outperform” rating and set a $33.00 target price on shares of Gates Industrial in a research report on Thursday, July 9th. Finally, Robert W. Baird cut their price target on Gates Industrial from $39.00 to $37.00 and set an “outperform” rating for the company in a report on Monday, May 4th. Seven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Gates Industrial has an average rating of “Moderate Buy” and an average price target of $31.50.

Institutional Trading of Gates Industrial

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Los Angeles Capital Management LLC bought a new position in shares of Gates Industrial during the fourth quarter valued at approximately $26,000. Transamerica Financial Advisors LLC raised its holdings in shares of Gates Industrial by 51.9% in the 4th quarter. Transamerica Financial Advisors LLC now owns 1,577 shares of the company’s stock valued at $34,000 after purchasing an additional 539 shares in the last quarter. Fifth Third Bancorp lifted its position 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 worth $37,000 after purchasing an additional 514 shares during the period. Parallel Advisors LLC lifted its position in shares of Gates Industrial by 37.7% in the 1st quarter. Parallel Advisors LLC now owns 2,536 shares of the company’s stock worth $57,000 after purchasing an additional 694 shares during the period. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in shares of Gates Industrial by 273.2% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,911 shares of the company’s stock valued at $67,000 after purchasing an additional 2,131 shares in the last quarter. 98.50% of the stock is owned by hedge funds and other institutional investors.

Gates Industrial Trading Up 7.0%

The company has a market capitalization of $7.01 billion, a PE ratio of 28.82 and a beta of 1.25. The company’s fifty day moving average is $26.63 and its 200-day moving average is $25.36. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.67 and a quick ratio of 2.66.

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.