Seven Eight Capital LP Makes New Investment in Gates Industrial Corp PLC (NYSE:GTES)

Seven Eight Capital LP acquired a new stake in shares of Gates Industrial Corp PLC (NYSE:GTES) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 60,842 shares of the company’s stock, valued at approximately $962,000.

Other institutional investors have also modified their holdings of the company. Hsbc Holdings PLC acquired a new stake in Gates Industrial in the 2nd quarter worth about $227,000. Amalgamated Bank boosted its stake in shares of Gates Industrial by 48.4% in the second quarter. Amalgamated Bank now owns 35,996 shares of the company’s stock worth $569,000 after acquiring an additional 11,732 shares during the last quarter. Renaissance Technologies LLC increased its position in shares of Gates Industrial by 27.6% during the second quarter. Renaissance Technologies LLC now owns 677,700 shares of the company’s stock worth $10,714,000 after purchasing an additional 146,500 shares in the last quarter. Dimensional Fund Advisors LP raised its stake 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 purchasing an additional 1,037,741 shares during the last quarter. Finally, Envestnet Asset Management Inc. lifted its holdings in Gates Industrial by 102.8% in the 2nd quarter. Envestnet Asset Management Inc. now owns 1,222,241 shares of the company’s stock valued at $19,324,000 after purchasing an additional 619,670 shares in the last quarter. Institutional investors and hedge funds own 98.50% of the company’s stock.

Gates Industrial Stock Performance

NYSE GTES opened at $17.72 on Friday. The company has a market cap of $4.63 billion, a P/E ratio of 19.47 and a beta of 1.41. Gates Industrial Corp PLC has a 1-year low of $10.68 and a 1-year high of $19.07. The company has a debt-to-equity ratio of 0.68, a current ratio of 3.11 and a quick ratio of 2.20. The stock has a 50-day moving average of $17.24 and a two-hundred day moving average of $16.96.

Gates Industrial (NYSE:GTES) last released its earnings results on Wednesday, July 31st. The company reported $0.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.33 by $0.01. Gates Industrial had a net margin of 7.24% and a return on equity of 10.27%. The company had revenue of $885.50 million for the quarter, compared to analyst estimates of $893.00 million. As a group, analysts anticipate that Gates Industrial Corp PLC will post 1.24 EPS for the current year.

Gates Industrial announced that its board has initiated a stock buyback program on Wednesday, July 31st that permits the company to buyback $250.00 million in shares. This buyback authorization permits the company to repurchase up to 5.4% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s management believes its shares are undervalued.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. Royal Bank of Canada raised shares of Gates Industrial from a “sector perform” rating to an “outperform” rating and raised their price target for the stock from $20.00 to $22.00 in a research note on Monday, August 19th. Morgan Stanley initiated coverage on Gates Industrial in a report on Friday, September 6th. They issued an “equal weight” rating and a $19.00 price target for the company. Barclays lowered their price objective on Gates Industrial from $17.00 to $16.00 and set an “equal weight” rating on the stock in a research note on Tuesday, June 4th. Robert W. Baird cut their target price on Gates Industrial from $26.00 to $22.00 and set an “outperform” rating for the company in a research note on Thursday, August 1st. Finally, The Goldman Sachs Group boosted their price target on shares of Gates Industrial from $18.00 to $20.00 and gave the company a “neutral” rating in a research report on Thursday, August 1st. Four equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $19.40.

Insider Activity at Gates Industrial

In related news, Director Wilson S. Neely purchased 11,952 shares of Gates Industrial 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 transaction, the director now directly owns 6,000 shares of the company’s stock, valued at $100,800. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 2.30% of the stock is currently owned by company insiders.

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.