Gates Reveals Plan to Repurchase $200M Common Stock


Gates Industrial Corporation (GTES) revealed that its Board of Directors has approved a new common stock repurchase program of up to $200 million. The plan comes with an expiration date of December 31, 2022.

Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. The company offers a broad portfolio of products to diverse replacement channel customers, and to original equipment manufacturers as specified components. (See Gates stock chart on TipRanks)

The buyback plan will be carried out from time to time depending on factors like market conditions and liquidity. Repurchases will be made from time to time by using methods not limited to the open market or private transactions.

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Price Target

Recently, RBC Capital analyst Deane Dray maintained a Buy rating on the stock and raised the price target on Gates to $21 from $20 (upside potential of 24.5%).

Consensus among analysts is a Strong Buy based on 3 Buys and 1 Hold. The average Gates price target stands at $23.25 and implies upside potential of 37.8% to current levels.

Increased Hedge Fund Activity

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Gates is currently Very Positive, as the cumulative change in holdings across all 4 hedge funds that were active in the last quarter was an increase of 3.4 million shares.

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