Gates Industrial Corporation plc [NYSE: GTES] loss -8.00% or -1.43 points to close at $16.44 with a heavy trading volume of 1233961 shares. The company report on February 24, 2021 that Gates Announces Secondary Offering of 22,000,000 Ordinary Shares.
Gates Industrial Corporation plc (NYSE: GTES, “Gates”) announced that certain selling stockholders affiliated with The Blackstone Group Inc. have commenced a secondary offering of 22,000,000 of Gates’ ordinary shares. In connection with the offering, the selling stockholders intend to grant to the underwriters a 30-day option to purchase up to 3,300,000 additional ordinary shares.
Gates is not offering any ordinary shares in the offering and will not receive any proceeds from the sale of ordinary shares in this offering. Citigroup and Evercore ISI are serving as the joint lead book-running managers of, and as representatives of the underwriters for, the offering. Barclays, Credit Suisse, Goldman Sachs & Co. LLC, Morgan Stanley, RBC Capital Markets, UBS Investment Bank and Baird are also serving as book-running managers of the offering. Nomura, Wells Fargo Securities, Guggenheim Securities and KeyBanc Capital Markets are serving as co-managers of the offering.
It opened the trading session at $16.67, the shares rose to $17.54 and dropped to $16.21, the range by which the price of stock traded the whole day. The daily chart for GTES points out that the company has recorded 40.27% gains over the past six months. However, it is still -203.32% lower than its most recent low trading price.
If we look at the average trading volume of 261.98K shares, GTES reached to a volume of 1233961 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Gates Industrial Corporation plc [GTES]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GTES shares is $18.56 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GTES stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
RBC Capital Mkts have made an estimate for Gates Industrial Corporation plc shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on February 23, 2021. While these analysts kept the previous recommendation, Credit Suisse raised their target price from $13 to $15. The new note on the price target was released on January 12, 2021, representing the official price target for Gates Industrial Corporation plc stock. Previously, the target price had yet another raise from $12 to $15, while UBS kept a Buy rating on GTES stock. On August 10, 2020, analysts increased their price target for GTES shares from 13 to 15.
The Average True Range (ATR) for Gates Industrial Corporation plc is set at 0.77, with the Price to Sales ratio for GTES stock in the period of the last 12 months amounting to 1.65. The Price to Book ratio for the last quarter was 1.70, with the Price to Cash per share for the same quarter was set at 1.86. Price to Free Cash Flow for GTES in the course of the last twelve months was 18.35 with Quick ratio for the last quarter at 1.90.
Trading performance analysis for GTES stock
Gates Industrial Corporation plc [GTES] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.32. With this latest performance, GTES shares gained by 11.01% in over the last four-week period, additionally plugging by 40.27% over the last 6 months – not to mention a rise of 45.36% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GTES stock in for the last two-week period is set at 57.66, with the RSI for the last a single of trading hit 53.63, and the three-weeks RSI is set at 59.46 for Gates Industrial Corporation plc [GTES]. The present Moving Average for the last 50 days of trading for this stock 14.51, while it was recorded at 16.97 for the last single week of trading, and 12.11 for the last 200 days.
Gates Industrial Corporation plc [GTES]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Gates Industrial Corporation plc [GTES] shares currently have an operating margin of +9.71 and a Gross Margin at +37.13. Gates Industrial Corporation plc’s Net Margin is presently recorded at +2.85.
Return on Total Capital for GTES is now 4.47, given the latest momentum, and Return on Invested Capital for the company is 1.41. Return on Equity for this stock inclined to 2.92, with Return on Assets sitting at 1.07. When it comes to the capital structure of this company, Gates Industrial Corporation plc [GTES] has a Total Debt to Total Equity ratio set at 101.40. Additionally, GTES Total Debt to Total Capital is recorded at 50.35, with Total Debt to Total Assets ending up at 38.31. Long-Term Debt to Equity for the company is recorded at 99.07, with the Long-Term Debt to Total Capital now at 49.19.
Reflecting on the efficiency of the workforce at the company, Gates Industrial Corporation plc [GTES] managed to generate an average of $5,573 per employee. Receivables Turnover for the company is 3.88 with a Total Asset Turnover recorded at a value of 0.38.Gates Industrial Corporation plc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.90 and a Current Ratio set at 2.60.
Gates Industrial Corporation plc [GTES]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Gates Industrial Corporation plc posted 0.21/share EPS, while the average EPS was predicted by analysts to be reported at 0.16/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 31.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GTES. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Gates Industrial Corporation plc go to 21.87%.
An analysis of insider ownership at Gates Industrial Corporation plc [GTES]
There are presently around $4,754 million, in the hands of institutional investors. The top three institutional holders of GTES stocks are: BLACKSTONE GROUP INC with ownership of 246,387,590, which is approximately 0% of the company’s market cap and around 0.19% of the total institutional ownership; JANUS HENDERSON GROUP PLC, holding 7,445,976 shares of the stock with an approximate value of $122.41 million in GTES stocks shares; and COOKE & BIELER LP, currently with $67.49 million in GTES stock with ownership of nearly -4.096% of the company’s market capitalization.
Positions in Gates Industrial Corporation plc stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 52 institutional holders increased their position in Gates Industrial Corporation plc [NYSE:GTES] by around 1,944,154 shares. Additionally, 46 investors decreased positions by around 2,595,777 shares, while 17 investors held positions by with 284,614,499 shares. The mentioned changes placed institutional holdings at 289,154,430 shares, according to the latest SEC report filing. GTES stock had 16 new institutional investments in for a total of 413,087 shares, while 7 institutional investors sold positions of 161,512 shares during the same period.