Gates Industrial Corporation plc [NYSE: GTES] price plunged by -9.60 percent to reach at -$1.28. The company report on May 17, 2023 at 9:17 PM that GATES Announces PRICING OF Secondary Offering of 22,500,000 Ordinary Shares.
Gates Industrial Corporation plc (NYSE: GTES, “Gates” or the “Company”) announced today the pricing of the previously announced secondary offering of 22,500,000 ordinary shares (the “Offering”) by certain selling stockholders affiliated with Blackstone Inc. (the “Selling Stockholders”) at a public offering price of $11.75 per share. The Selling Stockholders have also granted the underwriters a 30-day option to purchase up to 3,375,000 additional ordinary shares. The offering is expected to close on May 23, 2023, subject to customary closing conditions.
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Gates is not offering any ordinary shares in the Offering and will not receive any proceeds from the sale of ordinary shares in the Offering. Citigroup, Evercore ISI and Goldman Sachs & Co. LLC are serving as the joint lead book-running managers of, and as representatives of the underwriters for, the Offering. Baird, Morgan Stanley, Barclays, RBC Capital Markets and UBS Investment Bank are also serving as joint book-running managers for the Offering, BMO Capital Markets, Mizuho, Centerview Partners, KeyBanc Capital Markets, Wolfe Capital Markets and Advisory, BTIG, MUFG, Academy Securities, C.L. King & Associates, CastleOak Securities, L.P. and Cabrera Capital Markets LLC are serving as co-managers for the Offering.
A sum of 3692679 shares traded at recent session while its average daily volume was at 705.34K shares. Gates Industrial Corporation plc shares reached a high of $13.208 and dropped to a low of $12.00 until finishing in the latest session at $12.06.
The one-year GTES stock forecast points to a potential upside of 24.91. The average equity rating for GTES stock is currently 2.40, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on 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 $16.06 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 2.40. 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.
KeyBanc Capital Markets have made an estimate for Gates Industrial Corporation plc shares, keeping their opinion on the stock as Sector Weight, with their previous recommendation back on February 10, 2023. While these analysts kept the previous recommendation, Evercore ISI dropped their target price from $15 to $13.50. The new note on the price target was released on August 11, 2022, representing the official price target for Gates Industrial Corporation plc stock. Previously, the target price had yet another drop from $17 to $14, while RBC Capital Mkts kept a Sector Perform rating on GTES stock.
The Average True Range (ATR) for Gates Industrial Corporation plc is set at 0.43, with the Price to Sales ratio for GTES stock in the period of the last 12 months amounting to 0.97. The Price to Book ratio for the last quarter was 1.06, with the Price to Cash per share for the same quarter was set at 2.07. Price to Free Cash Flow for GTES in the course of the last twelve months was 9.83 with Quick ratio for the last quarter at 2.30.
GTES Stock Performance Analysis:
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 -11.65. With this latest performance, GTES shares dropped by -9.73% in over the last four-week period, additionally plugging by 3.52% over the last 6 months – not to mention a drop of -2.90% 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 27.87, with the RSI for the last a single of trading hit 20.39, and the three-weeks RSI is set at 33.41 for Gates Industrial Corporation plc [GTES]. The present Moving Average for the last 50 days of trading for this stock 13.40, while it was recorded at 13.24 for the last single week of trading, and 12.18 for the last 200 days.
Insight into Gates Industrial Corporation plc Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Gates Industrial Corporation plc [GTES] shares currently have an operating margin of +11.06 and a Gross Margin at +35.25. Gates Industrial Corporation plc’s Net Margin is presently recorded at +6.22.
Return on Total Capital for GTES is now 6.42, given the latest momentum, and Return on Invested Capital for the company is 3.88. Return on Equity for this stock inclined to 7.12, with Return on Assets sitting at 3.00. 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 83.96. Additionally, GTES Total Debt to Total Capital is recorded at 45.64, with Total Debt to Total Assets ending up at 36.31. Long-Term Debt to Equity for the company is recorded at 81.99, with the Long-Term Debt to Total Capital now at 44.57.
Reflecting on the efficiency of the workforce at the company, Gates Industrial Corporation plc [GTES] managed to generate an average of $14,747 per employee. Receivables Turnover for the company is 4.59 with a Total Asset Turnover recorded at a value of 0.48.Gates Industrial Corporation plc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.30 and a Current Ratio set at 3.20.
GTES Stock EPS
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 9.30%.
Gates Industrial Corporation plc [GTES] Insider Position Details
There are presently around $3,458 million, or 101.57% of GTES stock, in the hands of institutional investors. The top three institutional holders of GTES stocks are: BLACKSTONE INC. with ownership of 178,587,591, which is approximately 0% of the company’s market cap and around 0.36% of the total institutional ownership; VANGUARD GROUP INC, holding 9,629,516 shares of the stock with an approximate value of $116.13 million in GTES stocks shares; and ALLSPRING GLOBAL INVESTMENTS HOLDINGS, LLC, currently with $114.91 million in GTES stock with ownership of nearly -0.502% of the company’s market capitalization.
Positions in Gates Industrial Corporation plc stocks held by institutional investors increased at the end of Thursday and at the time of the Thursday reporting period, where 122 institutional holders increased their position in Gates Industrial Corporation plc [NYSE:GTES] by around 11,221,715 shares. Additionally, 82 investors decreased positions by around 6,332,606 shares, while 19 investors held positions by with 269,152,797 shares. The mentioned changes placed institutional holdings at 286,707,118 shares, according to the latest SEC report filing. GTES stock had 39 new institutional investments in for a total of 2,573,770 shares, while 18 institutional investors sold positions of 1,416,292 shares during the same period.