Zacks Investment Research cut shares of Gildan Activewear, Inc. (NYSE:GIL) (TSE:GIL) from a buy rating to a hold rating in a report issued on Monday, November 6th.
According to Zacks, “Gildan Activewear Inc. is a manufacturer and marketer of premium quality branded basic activewear for sale principally into the wholesale imprinted activewear segment of the North American apparel market. The company sells premium quality 100% cotton T-shirts and premium quality sweatshirts, in a variety of weights, sizes, colors and styles, as blanks, which are ultimately decorated with designs and logos for sale to consumers. “
Several other brokerages have also recently issued reports on GIL. BMO Capital Markets reaffirmed a buy rating and set a $34.00 price objective (up from $32.00) on shares of Gildan Activewear in a report on Friday, August 4th. TD Securities lowered Gildan Activewear from a buy rating to a hold rating and increased their price target for the company from $32.00 to $33.00 in a report on Friday, August 4th. National Bank Financial lowered Gildan Activewear from an outperform rating to a sector perform rating in a research note on Friday, August 4th. Royal Bank Of Canada lowered Gildan Activewear from an outperform rating to a sector perform rating and set a $31.00 target price on the stock. in a research note on Tuesday, July 11th. Finally, Macquarie started coverage on Gildan Activewear in a research report on Wednesday, November 1st. They set a neutral rating on the stock. Eight research analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. The stock presently has an average rating of Hold and an average price target of $32.20.
Gildan Activewear (NYSE:GIL) (TSE:GIL) last announced its quarterly earnings data on Thursday, November 2nd. The textile maker reported $0.53 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.51 by $0.02. Gildan Activewear had a return on equity of 18.80% and a net margin of 14.21%. The company had revenue of $716.40 million during the quarter, compared to the consensus estimate of $748.86 million. During the same period in the previous year, the company posted $0.50 EPS. The firm’s revenue was up .2% on a year-over-year basis. analysts forecast that Gildan Activewear will post 1.71 EPS for the current fiscal year.
Gildan Activewear declared that its Board of Directors has initiated a stock repurchase program on Thursday, November 2nd that permits the company to repurchase 4,600,000 shares. This repurchase authorization permits the textile maker to repurchase shares of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 11th. Stockholders of record on Thursday, November 16th will be paid a $0.094 dividend. This represents a $0.38 annualized dividend and a dividend yield of 1.20%. The ex-dividend date of this dividend is Wednesday, November 15th. Gildan Activewear’s payout ratio is 22.02%.
Hedge funds have recently made changes to their positions in the stock. Commonwealth Bank of Australia raised its position in Gildan Activewear by 9.7% during the second quarter. Commonwealth Bank of Australia now owns 3,414 shares of the textile maker’s stock valued at $103,000 after acquiring an additional 303 shares in the last quarter. DekaBank Deutsche Girozentrale grew its holdings in Gildan Activewear by 133.7% in the second quarter. DekaBank Deutsche Girozentrale now owns 3,475 shares of the textile maker’s stock valued at $106,000 after purchasing an additional 1,988 shares during the period. Global X Management Co. LLC grew its holdings in Gildan Activewear by 33.1% in the second quarter. Global X Management Co. LLC now owns 3,591 shares of the textile maker’s stock valued at $110,000 after purchasing an additional 893 shares during the period. PNC Financial Services Group Inc. grew its holdings in Gildan Activewear by 43.2% in the first quarter. PNC Financial Services Group Inc. now owns 3,968 shares of the textile maker’s stock valued at $107,000 after purchasing an additional 1,198 shares during the period. Finally, Boston Private Wealth LLC acquired a new stake in Gildan Activewear in the third quarter valued at approximately $201,000. Institutional investors own 72.15% of the company’s stock.
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About Gildan Activewear
Gildan Activewear Inc is a manufacturer and marketer of branded basic family apparel, including T-shirts, fleece, sport shirts, underwear, socks, hosiery and shapewear. The Company operates through two segments: Printwear and Branded Apparel. The Printwear segment designs, manufactures, sources, markets, and distributes undecorated activewear products.
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