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Fredrik J. Eliasson, a director at Gates Industrial Corp plc (NYSE:GTES), a $5 billion industrial company with strong liquidity metrics and a healthy current ratio of 3.2, recently acquired 60,000 ordinary shares of the company. The purchase, made on March 7, 2025, was executed at an average price of $19.56 per share, totaling approximately $1.17 million. This transaction increased Eliasson’s total holdings to 188,452 shares. The acquisition was carried out through multiple transactions, with share prices ranging from $19.365 to $19.81. While the stock has faced headwinds recently, showing a -5.25% YTD return, InvestingPro analysis suggests the company is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other top stocks.
In other recent news, Gates Industrial Corporation has been in the spotlight due to several key developments. RBC Capital Markets adjusted its outlook on Gates Industrial, maintaining an Outperform rating while lowering the price target from $26.00 to $24.00, citing the company’s crucial role in applications where operational continuity is vital. Conversely, a recent report highlighted Gates Industrial’s resilience over the past three years, with expectations to expand margins by 400 basis points through 2026. Additionally, the company announced the resignation of board member Seth A. Meisel, effective December 31, 2024, though it clarified that his departure is not related to any disagreements with the company.
Earlier, RBC Capital had upgraded Gates Industrial’s price target from $22.00 to $26.00 following investor meetings that reinforced the company’s margin expansion prospects and cost-saving initiatives. The meetings underscored the anticipated 400 basis points margin improvement driven by strategic initiatives like the 80/20 principle and footprint optimization. The company’s management expressed optimism about future growth opportunities, particularly in the core industrial belts and hoses segment. Gates Industrial also benefits from its strong position in the aftermarket sector, which accounts for a substantial portion of its revenue. These developments reflect the company’s strategic focus and potential for growth in its essential industrial businesses.
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