Gates Industrial Corporation plc (NYSE: GTES)’s stock price has plunge by 0.17relation to previous closing price of 17.71. Nevertheless, the company has seen a 0.57% surge in its stock price over the last five trading sessions. Seeking Alpha reported 2024-03-21 that Gates Industrial stock was downgraded to a ‘Hold’ rating due to uncertainty and bearish forward-looking EPS revisions last November. The company’s Q4 earnings report showed a significant improvement in gross margin, adjusted EBITDA, and free cash flow trends. The positive momentum is expected to continue into fiscal 2024, with promising signs from enterprise initiatives and strong earnings growth potential.
Is It Worth Investing in Gates Industrial Corporation plc (NYSE: GTES) Right Now?
Gates Industrial Corporation plc (NYSE: GTES) has a higher price-to-earnings ratio of 20.76x compared to its average ratio. GTES has 36-month beta value of 1.58. Analysts have mixed views on the stock, with 7 analysts rating it as a “buy,” 1 as “overweight,” 1 as “hold,” and 0 as “sell.”
The public float for GTES is 189.57M, and currently, short sellers hold a 3.83% ratio of that float. The average trading volume of GTES on April 02, 2024 was 3.00M shares.
GTES’s Market Performance
The stock of Gates Industrial Corporation plc (GTES) has seen a 0.57% increase in the past week, with a 20.52% rise in the past month, and a 31.70% gain in the past quarter. The volatility ratio for the week is 1.11%, and the volatility levels for the past 30 days are at 2.21% for GTES. The simple moving average for the last 20 days is 6.03% for GTES stock, with a simple moving average of 37.42% for the last 200 days.
Analysts’ Opinion of GTES
Many brokerage firms have already submitted their reports for GTES stocks, with Wolfe Research repeating the rating for GTES by listing it as a “Outperform.” The predicted price for GTES in the upcoming period, according to Wolfe Research is $20 based on the research report published on March 08, 2024 of the current year 2024.
Jefferies, on the other hand, stated in their research note that they expect to see GTES reach a price target of $21. The rating they have provided for GTES stocks is “Buy” according to the report published on February 29th, 2024.
KeyBanc Capital Markets gave a rating of “Overweight” to GTES, setting the target price at $18 in the report published on February 22nd of the current year.
GTES Trading at 20.49% from the 50-Day Moving Average
After a stumble in the market that brought GTES to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -0.39% of loss for the given period.
Volatility was left at 2.21%, however, over the last 30 days, the volatility rate increased by 1.11%, as shares surge +19.62% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +35.52% upper at present.
During the last 5 trading sessions, GTES rose by +0.57%, which changed the moving average for the period of 200-days by +36.46% in comparison to the 20-day moving average, which settled at $16.88. In addition, Gates Industrial Corporation plc saw 32.19% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at GTES starting from Neely Wilson S, who purchase 50,000 shares at the price of $14.55 back on Feb 28 ’24. After this action, Neely Wilson S now owns 106,664 shares of Gates Industrial Corporation plc, valued at $727,500 using the latest closing price.
Neely Wilson S, the Director of Gates Industrial Corporation plc, purchase 10,000 shares at $13.24 during a trade that took place back on Feb 20 ’24, which means that Neely Wilson S is holding 56,664 shares at $132,400 based on the most recent closing price.
Stock Fundamentals for GTES
Current profitability levels for the company are sitting at:
- 0.13 for the present operating margin
- 0.38 for the gross margin
The net margin for Gates Industrial Corporation plc stands at 0.07. The total capital return value is set at 0.07. Equity return is now at value 7.38, with 3.23 for asset returns.
Based on Gates Industrial Corporation plc (GTES), the company’s capital structure generated 0.44 points at debt to capital in total, while cash flow to debt ratio is standing at 0.19. The debt to equity ratio resting at 0.8. The interest coverage ratio of the stock is 2.88.
Currently, EBITDA for the company is 697.6 million with net debt to EBITDA at 2.86. When we switch over and look at the enterprise to sales, we see a ratio of 1.83. The receivables turnover for the company is 4.47for trailing twelve months and the total asset turnover is 0.49. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.08.
Conclusion
To put it simply, Gates Industrial Corporation plc (GTES) has had a better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
