Barclays Forecasts Strong Price Appreciation for Gates Industrial (NYSE:GTES) Stock

Gates Industrial (NYSE:GTES) had its price objective raised by Barclays from $16.00 to $21.00 in a research report sent to investors on Tuesday,Benzinga reports. They currently have an equal weight rating on the stock.

A number of other research analysts have also weighed in on GTES. Evercore ISI raised their price target on shares of Gates Industrial from $15.00 to $16.00 and gave the company an “in-line” rating in a research report on Monday, August 19th. Morgan Stanley initiated coverage on shares of Gates Industrial in a research note on Friday, September 6th. They issued an “equal weight” rating and a $19.00 target price on the stock. Robert W. Baird lowered their price objective on 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 lifted their target price for the company from $20.00 to $22.00 in a report on Monday, August 19th. Finally, KeyCorp raised their price objective on shares of Gates Industrial from $21.00 to $22.00 and gave the company an “overweight” rating in a research note on Thursday, October 31st. Four investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat.com, Gates Industrial has an average rating of “Moderate Buy” and an average target price of $20.30.

Gates Industrial Price Performance

Shares of Gates Industrial stock traded up $0.15 on Tuesday, reaching $21.42. 383,858 shares of the stock were exchanged, compared to its average volume of 3,071,097. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.11 and a current ratio of 3.02. Gates Industrial has a one year low of $11.14 and a one year high of $21.54. The firm has a market cap of $5.46 billion, a PE ratio of 25.61 and a beta of 1.38. The firm’s 50 day moving average is $17.96 and its 200-day moving average is $17.24.

Gates Industrial announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, July 31st that allows the company to buyback $250.00 million in shares. This buyback authorization allows the company to purchase up to 5.4% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Gates Industrial

In related news, Director Wilson S. Neely purchased 11,952 shares of the company’s stock in a transaction on Wednesday, August 21st. The shares were bought at an average price of $16.80 per share, with a total value of $200,793.60. Following the completion of the acquisition, the director now owns 6,000 shares of the company’s stock, valued at approximately $100,800. This represents a -200.00 % increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate insiders own 2.30% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in shares of Gates Industrial by 17.5% during the 1st quarter. Vanguard Group Inc. now owns 18,008,743 shares of the company’s stock worth $318,935,000 after buying an additional 2,678,954 shares during the period. Fred Alger Management LLC grew its stake in shares of Gates Industrial by 156.8% in the second quarter. Fred Alger Management LLC now owns 2,665,632 shares of the company’s stock worth $42,144,000 after purchasing an additional 1,627,482 shares during the last quarter. Principal Financial Group Inc. boosted its stake in Gates Industrial by 6,879.6% during the third quarter. Principal Financial Group Inc. now owns 1,063,838 shares of the company’s stock worth $18,670,000 after acquiring an additional 1,048,596 shares in the last quarter. Dimensional Fund Advisors LP increased its position in Gates Industrial by 9.5% in the 2nd quarter. Dimensional Fund Advisors LP now owns 11,921,356 shares of the company’s stock valued at $188,477,000 after buying an additional 1,037,741 shares in the last quarter. Finally, Jennison Associates LLC acquired a new position in Gates Industrial during the 1st quarter valued at about $15,791,000. 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.