Gates Industrial Corp PLC (NYSE:GTES) Sees Large Drop in Short Interest

Gates Industrial Corp PLC (NYSE:GTES) saw a large drop in short interest in August. As of August 31st, there was short interest totalling 955,300 shares, a drop of 48.4% from the August 15th total of 1,850,000 shares. Based on an average daily volume of 944,100 shares, the days-to-cover ratio is presently 1.0 days. Currently, 1.0% of the shares of the company are sold short.

NYSE:GTES traded down $0.42 on Friday, reaching $16.24. The company’s stock had a trading volume of 2,561,925 shares, compared to its average volume of 818,839. Gates Industrial has a 1-year low of $10.58 and a 1-year high of $18.94. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.82 and a current ratio of 2.52. The firm has a market cap of $4.71 billion, a PE ratio of 20.82 and a beta of 1.81. The business’s 50-day moving average price is $17.17 and its two-hundred day moving average price is $17.18.

Gates Industrial (NYSE:GTES) last issued its quarterly earnings results on Sunday, August 8th. The company reported $0.42 EPS for the quarter, beating analysts’ consensus estimates of $0.37 by $0.05. The company had revenue of $915.10 million for the quarter, compared to analyst estimates of $907.86 million. Gates Industrial had a return on equity of 11.21% and a net margin of 6.98%. The company’s quarterly revenue was up 58.7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.03 earnings per share. As a group, sell-side analysts expect that Gates Industrial will post 1.32 EPS for the current year.

In related news, major shareholder Blackstone Inc sold 28,750,000 shares of the firm’s stock in a transaction that occurred on Monday, August 16th. The stock was sold at an average price of $15.36, for a total transaction of $441,600,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.76% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GTES. Parametric Portfolio Associates LLC raised its stake in Gates Industrial by 12.3% in the second quarter. Parametric Portfolio Associates LLC now owns 203,216 shares of the company’s stock valued at $3,672,000 after buying an additional 22,257 shares during the period. Comerica Bank raised its stake in Gates Industrial by 25.8% in the second quarter. Comerica Bank now owns 14,007 shares of the company’s stock valued at $225,000 after buying an additional 2,872 shares during the period. Marshall Wace LLP bought a new stake in Gates Industrial in the second quarter valued at approximately $1,641,000. Marshall Wace North America L.P. bought a new stake in Gates Industrial in the second quarter valued at approximately $5,006,000. Finally, Morgan Stanley raised its stake in Gates Industrial by 11.9% in the second quarter. Morgan Stanley now owns 676,550 shares of the company’s stock valued at $12,225,000 after buying an additional 72,144 shares during the period.

Several equities analysts have issued reports on GTES shares. Credit Suisse Group lifted their price objective on Gates Industrial from $21.00 to $22.00 and gave the company a “neutral” rating in a research report on Tuesday, August 10th. TheStreet downgraded Gates Industrial from a “b” rating to a “c+” rating in a research report on Monday. Robert W. Baird restated a “buy” rating on shares of Gates Industrial in a research report on Wednesday, August 25th. Zacks Investment Research upgraded Gates Industrial from a “hold” rating to a “buy” rating and set a $20.00 target price for the company in a research report on Wednesday, August 11th. Finally, Evercore ISI assumed coverage on Gates Industrial in a research report on Friday, September 3rd. They set an “outperform” rating and a $23.00 target price for the company. Two analysts have rated the stock with a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus price target of $21.45.

Gates Industrial Company Profile

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.

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