Gates Industrial Corporation plc (NYSE: GTES) stock fell -1.04% on Wednesday to $11.41 against a previous-day closing price of $11.53. With 2.41 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.38 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $11.57 whereas the lowest price it dropped to was $11.23. The 52-week range on GTES shows that it touched its highest point at $14.93 and its lowest point at $9.40 during that stretch. It currently has a 1-year price target of $16.06. Beta for the stock currently stands at 1.55.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GTES was down-trending over the past week, with a drop of -5.39%, but this was down by -12.10% over a month. Three-month performance dropped to -19.08% while six-month performance fell -1.38%. A look at the trailing 12-month EPS for GTES yields 0.76 with Next year EPS estimates of 1.35. For the next quarter, that number is 0.32. This implies an EPS growth rate of -23.00% for this year and 14.48% for next year. EPS is expected to grow by 9.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 42.80%.
Float and Shares Shorts:
At present, 283.52 million GTES shares are outstanding with a float of 281.58 million shares on hand for trading. On Apr 27, 2023, short shares totaled 3.47 million, which was 1.22% higher than short shares on Mar 30, 2023. In addition to Mr. Ivo Jurek as the firm’s CEO & Director, Mr. L. Brooks Mallard serves as its Exec. VP & CFO.
Through their ownership of 101.57% of GTES’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.86% of GTES, in contrast to 24.02% held by mutual funds. Shares owned by individuals account for 14.11%. As the largest shareholder in GTES with 3.36% of the stake, Allspring Global Investments LLC holds 9,494,025 shares worth 9,494,025. A second-largest stockholder of GTES, The Vanguard Group, Inc., holds 9,452,048 shares, controlling over 3.35% of the firm’s shares. Janus Henderson Investors US LLC is the third largest shareholder in GTES, holding 6,984,840 shares or 2.47% stake. With a 2.88% stake in GTES, the Allspring Special Mid Cap Value F is the largest stakeholder. A total of 8,126,532 shares are owned by the mutual fund manager. The Janus Henderson Triton Fund, which owns about 1.82% of GTES stock, is the second-largest Mutual Fund holder. It holds 5,145,314 shares valued at 69.31 million. American Century Small Cap Value holds 1.68% of the stake in GTES, owning 4,735,000 shares worth 63.78 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 31, 2023, GTES reported revenue of $906.80M and operating income of $117.00M. The EBITDA in the recently reported quarter was $170.90M and diluted EPS was $0.19.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GTES since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With GTES analysts setting a high price target of $22.00 and a low target of $14.00, the average target price over the next 12 months is $16.65. Based on these targets, GTES could surge 92.81% to reach the target high and rise by 22.7% to reach the target low. Reaching the average price target will result in a growth of 45.92% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded GTES stock several times over the past three months with 13 Buys and 7 Sells. In these transactions, 115,371 shares were bought while 20,364 shares were sold. The number of buy transactions has increased to 32 while that of sell transactions has risen to 28 over the past year. The total number of shares bought during that period was 414,305 while 117,832 shares were sold.