Gates Industrial (NYSE:GTES) Trading Down 6.5% – Here’s Why

Shares of Gates Industrial Corporation PLC (NYSE:GTES) traded down 6.5% during trading on Friday . The stock traded as low as $23.95 and last traded at $23.9580. 3,149,020 shares were traded during trading, an increase of 29% from the average session volume of 2,447,119 shares. The stock had previously closed at $25.61.

More Gates Industrial News

Here are the key news stories impacting Gates Industrial this week:

• Positive Sentiment: Acquisition announced — Gates agreed to buy The Timken Company’s belts business, expanding its power-transmission footprint and management says the deal should improve adjusted EBITDA margins in the Industrial Motion segment. The strategic fit and expected margin accretion are positive for medium-term profit growth. Timken to Sell Belts Business to Gates
• Positive Sentiment: EPS beat — Gates reported $0.35 EPS for Q1, above the ~$0.32 consensus, showing underlying profitability and providing some support despite revenue pressure. That beat helps justify the multiple while investors assess topline trends. Gates Industrial (GTES) Q1 Earnings Surpass Estimates
• Neutral Sentiment: Guidance roughly in line but cautious on revenue — FY‑2026 EPS was guided to $1.52–$1.68 (near Street expectations) while revenue guidance of $3.5–$3.6B sits slightly below consensus. That keeps the story intact but raises questions about near-term top-line momentum. Gates Industrial Reports First-Quarter 2026 Results
• Neutral Sentiment: Conference call / management commentary — The earnings call transcript provides more context on reasons for core revenue weakness and integration plans for the Timken belts assets; investors should watch execution details. Gates Industrial (GTES) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Top-line softness and core revenue decline — Q1 net sales were $851.1M (up 0.4% YoY) but core revenue fell ~2.9% year-over-year and sales missed analyst estimates (~$859.7M). Sluggish organic growth and the revenue miss likely drove the negative stock reaction. Gates Industrial (GTES) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. Robert W. Baird set a $39.00 price target on shares of Gates Industrial in a research note on Friday, February 13th. Wall Street Zen raised shares of Gates Industrial from a “buy” rating to a “strong-buy” rating in a research note on Saturday. Morgan Stanley lifted their target price on shares of Gates Industrial from $25.00 to $27.00 and gave the stock an “equal weight” rating in a research note on Wednesday, March 11th. Barclays decreased their target price on shares of Gates Industrial from $32.00 to $28.00 and set an “overweight” rating on the stock in a research note on Wednesday, April 1st. Finally, Citigroup lifted their target price on shares of Gates Industrial from $27.00 to $33.00 and gave the stock a “buy” rating in a research note on Friday, February 13th. Six analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $30.36.

Gates Industrial Trading Down 5.9%

The company has a debt-to-equity ratio of 0.61, a current ratio of 3.37 and a quick ratio of 2.42. The firm’s 50 day moving average is $24.57 and its 200 day moving average is $23.74. The company has a market capitalization of $6.14 billion, a PE ratio of 25.10 and a beta of 1.28.

Gates Industrial (NYSE:GTES) last issued its earnings results on Friday, May 1st. The company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.32 by $0.03. Gates Industrial had a net margin of 7.30% and a return on equity of 10.36%. The company had revenue of $851.10 million for the quarter, compared to the consensus estimate of $859.72 million. During the same period in the previous year, the firm earned $0.36 earnings per share. The firm’s revenue for the quarter was up .4% on a year-over-year basis. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. As a group, equities analysts predict that Gates Industrial Corporation PLC will post 1.53 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Fifth Third Bancorp increased its position in Gates Industrial by 46.3% during the 1st quarter. Fifth Third Bancorp now owns 1,624 shares of the company’s stock valued at $37,000 after purchasing an additional 514 shares during the period. KLCM Advisors Inc. increased its position in Gates Industrial by 4.9% during the 1st quarter. KLCM Advisors Inc. now owns 697,861 shares of the company’s stock valued at $15,779,000 after purchasing an additional 32,332 shares during the period. Hsbc Holdings PLC purchased a new position in Gates Industrial during the 1st quarter valued at $343,000. Personal CFO Solutions LLC increased its position in Gates Industrial by 7.0% during the 1st quarter. Personal CFO Solutions LLC now owns 16,459 shares of the company’s stock valued at $372,000 after purchasing an additional 1,077 shares during the period. Finally, QRG Capital Management Inc. increased its position in Gates Industrial by 12.3% during the 1st quarter. QRG Capital Management Inc. now owns 14,565 shares of the company’s stock valued at $329,000 after purchasing an additional 1,592 shares during the period. 98.50% of the stock is owned by hedge funds and other institutional investors.

About Gates Industrial

Gates Industrial Corporation PLC (NYSE: GTES) is a leading global manufacturer of engineered power transmission belts and fluid power products. The company’s portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.