Gates Industrial Corp (GTES US, +1, 04-Mar-24)

The CEO, CB, and two directors bought a total of $13.7m of stock during February. $12.9m of the purchases were bought as part of a placing of 24m shares by Blackstone at $12.20 on the 16th of February. Blackstone continues to hold 72m shares, 27% of the company, after the placing. 

On that secondary, Neil Simpkins (Chair since 2020, joined 2017) purchased $12.2m of stock in his first-ever purchase in the company, he is an Executive Advisor to Blackstone (and was previously a Senior Managing Director at Blackstone). 

Also on the offering, Ivo Jurek (CEO since 2018) purchased $250,000 of stock in his first purchase since 2020, and Fredrik Eliasson (Non-Executive since 2022) bought $500,000. The company also repurchased $50m of stock in the placing. 

In addition, just after the offering, Wilson Neely (Non Executive since 2020) purchased $860,000 of stock at $14.33 in his largest purchase. While Blackstone’s sale of 17.5m shares (with an option of a further 2.625m shares) is notable (they had 178m as of April 2023), it could be motivated by various factors. The strong support by insiders is encouraging. 

We are ranking the stock +1.

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