Gates Industrial Corporation plc (NYSE: GTES)’s stock price has plunge by 1.85relation to previous closing price of 16.18. Nevertheless, the company has seen a -6.95% plunge in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-05-01 that Gates Industrial (GTES) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.25 per share a year ago.
Is It Worth Investing in Gates Industrial Corporation plc (NYSE: GTES) Right Now?
Gates Industrial Corporation plc (NYSE: GTES) has a price-to-earnings ratio of 18.07x that is above its average ratio. Additionally, the 36-month beta value for GTES is 1.45. There are mixed opinions on the stock, with 7 analysts rating it as a “buy,” 1 rating it as “overweight,” 1 rating it as “hold,” and 0 rating it as “sell.”
The public float for GTES is 187.50M and currently, short sellers hold a 4.48% ratio of that float. The average trading volume of GTES on May 07, 2024 was 3.19M shares.
GTES’s Market Performance
The stock of Gates Industrial Corporation plc (GTES) has seen a -6.95% decrease in the past week, with a -4.57% drop in the past month, and a 25.32% gain in the past quarter. The volatility ratio for the week is 4.81%, and the volatility levels for the past 30 days are at 2.56% for GTES. The simple moving average for the past 20 days is -4.70% for GTES’s stock, with a 22.81% simple moving average for the past 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 -2.01% 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 -8.37% of loss for the given period.
Volatility was left at 2.56%, however, over the last 30 days, the volatility rate increased by 4.81%, as shares sank -5.94% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +12.57% upper at present.
During the last 5 trading sessions, GTES fell by -6.95%, which changed the moving average for the period of 200-days by +22.44% in comparison to the 20-day moving average, which settled at $17.24. In addition, Gates Industrial Corporation plc saw 22.80% 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:
- 0.14 for the present operating margin
- 0.39 for the gross margin
The net margin for Gates Industrial Corporation plc stands at 0.07. The total capital return value is set at 0.08. Equity return is now at value 7.72, with 3.45 for asset returns.
Based on Gates Industrial Corporation plc (GTES), the company’s capital structure generated 0.42 points at debt to capital in total, while cash flow to debt ratio is standing at 0.17. The debt to equity ratio resting at 0.74. The interest coverage ratio of the stock is 3.2.
Currently, EBITDA for the company is 697.6 million with net debt to EBITDA at 2.88. When we switch over and look at the enterprise to sales, we see a ratio of 1.76. The receivables turnover for the company is 4.2for trailing twelve months and the total asset turnover is 0.5. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.06.
Conclusion
In conclusion, Gates Industrial Corporation plc (GTES) has seen mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
