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

Gates Industrial Corporation PLC (NYSE:GTES)’s stock price reached a new 52-week high during trading on Friday . The company traded as high as $26.74 and last traded at $26.6140, with a volume of 583278 shares traded. The stock had previously closed at $25.68.

Wall Street Analyst Weigh In

GTES has been the topic of a number of analyst reports. JPMorgan Chase & Co. lowered their target price on shares of Gates Industrial from $33.00 to $32.00 and set an “overweight” rating on the stock in a research note on Tuesday, December 16th. UBS Group lowered their price objective on Gates Industrial from $29.00 to $28.00 and set a “buy” rating on the stock in a research note on Monday, January 5th. Royal Bank Of Canada cut their target price 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. Weiss Ratings reiterated a “hold (c+)” rating on shares of Gates Industrial in a research report on Monday, December 29th. Finally, Zacks Research cut Gates Industrial from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. Six analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $27.09.

Gates Industrial Trading Up 4.5%

The company has a debt-to-equity ratio of 0.61, a quick ratio of 2.50 and a current ratio of 3.52. The stock has a market cap of $6.93 billion, a P/E ratio of 29.59 and a beta of 1.27. The company has a 50-day simple moving average of $22.51 and a 200-day simple moving average of $23.75.

Insider Activity

In related news, CFO Lawrence B. Mallard sold 22,188 shares of the company’s stock in a transaction dated Wednesday, November 12th. The shares were sold at an average price of $22.77, for a total transaction of $505,220.76. Following the transaction, the chief financial officer owned 177,627 shares in the company, valued at $4,044,566.79. This represents a 11.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 2.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Gates Industrial

A number of institutional investors have recently modified their holdings of GTES. Vanguard Group Inc. grew its stake in shares of Gates Industrial by 5.0% during the third quarter. Vanguard Group Inc. now owns 26,753,365 shares of the company’s stock valued at $664,019,000 after purchasing an additional 1,281,339 shares during the last quarter. Allspring Global Investments Holdings LLC lifted its holdings in Gates Industrial by 5.3% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 14,169,457 shares of the company’s stock worth $312,578,000 after buying an additional 717,353 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in Gates Industrial by 0.3% in the 3rd quarter. Dimensional Fund Advisors LP now owns 10,850,516 shares of the company’s stock valued at $269,308,000 after buying an additional 28,760 shares during the last quarter. Invesco Ltd. increased its stake in shares of Gates Industrial by 3.0% in the 3rd quarter. Invesco Ltd. now owns 7,861,494 shares of the company’s stock valued at $195,122,000 after buying an additional 226,075 shares during the period. Finally, State Street Corp raised its position in shares of Gates Industrial by 2.4% during the second quarter. State Street Corp now owns 7,346,884 shares of the company’s stock worth $169,199,000 after acquiring an additional 170,597 shares during the last quarter. 98.50% of the stock is owned by 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.