Gildan Activewear Target of Unusually High Options Trading (NYSE:GIL)

Gildan Activewear, Inc. (NYSE:GIL) (TSE:GIL) was the target of unusually large options trading on Wednesday. Stock investors acquired 5,005 put options on the stock. This is an increase of approximately 734% compared to the average volume of 600 put options.

Gildan Activewear Price Performance

Shares of NYSE:GIL opened at $52.40 on Friday. The company has a quick ratio of 1.17, a current ratio of 2.35 and a debt-to-equity ratio of 1.32. Gildan Activewear has a 52 week low of $46.00 and a 52 week high of $73.69. The company has a market cap of $9.70 billion, a P/E ratio of 30.82 and a beta of 1.11. The company has a 50-day moving average price of $54.51 and a 200 day moving average price of $59.48.

Gildan Activewear (NYSE:GIL) (TSE:GIL) last announced its quarterly earnings data on Thursday, July 30th. The textile maker reported $1.28 EPS for the quarter, beating the consensus estimate of $1.11 by $0.17. Gildan Activewear had a net margin of 6.10% and a return on equity of 21.38%. The firm had revenue of $1.58 billion during the quarter, compared to analysts’ expectations of $1.61 billion. During the same quarter last year, the business earned $0.97 earnings per share. The business’s revenue for the quarter was up 72.3% compared to the same quarter last year. Research analysts predict that Gildan Activewear will post 4.25 earnings per share for the current year.

Gildan Activewear Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 14th. Stockholders of record on Thursday, August 20th will be paid a dividend of $0.249 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.9%. Gildan Activewear’s dividend payout ratio is currently 58.82%.

Institutional Investors Weigh In On Gildan Activewear

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Janus Henderson Group PLC raised its position in shares of Gildan Activewear by 0.9% during the 1st quarter. Janus Henderson Group PLC now owns 10,593,203 shares of the textile maker’s stock worth $589,508,000 after purchasing an additional 98,134 shares during the period. Vanguard Group Inc. increased its position in shares of Gildan Activewear by 26.0% during the 4th quarter. Vanguard Group Inc. now owns 7,566,962 shares of the textile maker’s stock valued at $472,964,000 after purchasing an additional 1,561,729 shares during the period. Royal Bank of Canada raised its stake in shares of Gildan Activewear by 20.9% in the 1st quarter. Royal Bank of Canada now owns 6,911,589 shares of the textile maker’s stock worth $384,629,000 after buying an additional 1,193,718 shares in the last quarter. Mackenzie Financial Corp raised its stake in shares of Gildan Activewear by 41.2% in the 4th quarter. Mackenzie Financial Corp now owns 6,860,108 shares of the textile maker’s stock worth $429,382,000 after buying an additional 2,001,279 shares in the last quarter. Finally, The Manufacturers Life Insurance Company lifted its holdings in shares of Gildan Activewear by 15.7% in the first quarter. The Manufacturers Life Insurance Company now owns 6,706,078 shares of the textile maker’s stock valued at $373,122,000 after buying an additional 909,001 shares during the period. Hedge funds and other institutional investors own 82.83% of the company’s stock.

Key Gildan Activewear News

Here are the key news stories impacting Gildan Activewear this week:

• Positive Sentiment: Gildan reported second-quarter net sales of $1.58 billion, up 72.3% year over year, with an 11.1% operating margin and a 22.3% adjusted operating margin. The company also updated its full-year 2026 guidance, which may improve investor confidence in its earnings outlook. Gildan Reports Strong Second Quarter Results, Updates its Full Year 2026 Guidance and Announces the Sale of HanesBrands Australia
• Positive Sentiment: Quarterly earnings of $1.28 per share exceeded the $1.11 analyst consensus and increased from $0.97 in the prior-year quarter. The earnings beat, combined with substantial revenue growth, provided the main fundamental support for the stock. Gildan Activewear Tops Q2 Earnings Estimates
• Positive Sentiment: The company announced a quarterly dividend of $0.249 per share, payable September 14 to shareholders of record August 20. The dividend represents an annualized yield of approximately 1.9%, adding to the stock’s shareholder-return appeal.
• Neutral Sentiment: Gildan announced the sale of HanesBrands Australia. The transaction could streamline the portfolio and generate proceeds, although the immediate financial impact was not provided in the available report.
• Negative Sentiment: Rosen Law Firm said it is investigating potential securities claims related to allegations that Gildan issued materially misleading business information. A separate investigation cited alleged channel stuffing. These announcements raise litigation and reputational risks, although no wrongdoing has been established. Rosen Law Firm Gildan Investigation
• Negative Sentiment: Traders purchased 5,005 put options, versus typical daily volume of about 600. The unusually high bearish options activity signals increased downside hedging or speculation, but it does not by itself confirm a deterioration in Gildan’s fundamentals.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Scotia cut their price target on shares of Gildan Activewear from $72.00 to $65.00 and set a “sector outperform” rating on the stock in a research note on Wednesday, June 17th. UBS Group reiterated a “buy” rating on shares of Gildan Activewear in a research report on Friday, July 17th. Weiss Ratings cut Gildan Activewear from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, May 18th. Stifel Nicolaus set a $80.00 price target on Gildan Activewear and gave the stock a “buy” rating in a research note on Monday, July 20th. Finally, Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating and set a $77.00 price target on shares of Gildan Activewear in a research report on Friday, May 1st. Thirteen research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $78.21.

About Gildan Activewear

Gildan Activewear Inc (NYSE:GIL) is a vertically integrated manufacturer and wholesaler of branded basic apparel, including activewear, socks, hosiery and underwear. Headquartered in Montreal, Quebec, the company produces a wide range of products such as T-shirts, fleece garments, sport shirts, performance wear, and shapewear under its Gildan, Anvil, Comfort Colors, Gold Toe, Peds and Silks brands. Leveraging its in-house knitting, dyeing, cut-and-sew and finishing operations, Gildan supplies blank apparel to screen printers, promotional product distributors and major retailers around the world.

Since its founding in 1984 by Glenn J.