Gildan Activewear (GIL) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research downgraded shares of Gildan Activewear (NYSE:GIL) (TSE:GIL) from a hold rating to a sell rating in a report published on Wednesday morning.

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 equities analysts have also recently weighed in on the company. ValuEngine raised Gildan Activewear from a hold rating to a buy rating in a report on Saturday, February 23rd. Raymond James reaffirmed a strong-buy rating and issued a $40.00 target price on shares of Gildan Activewear in a report on Friday, February 22nd. Royal Bank of Canada raised their target price on Gildan Activewear from $33.00 to $34.00 and gave the stock a sector perform rating in a report on Friday, February 22nd. TD Securities cut Gildan Activewear from a buy rating to a hold rating and set a $38.00 target price on the stock. in a report on Thursday, February 21st. Finally, National Bank Financial reaffirmed a hold rating on shares of Gildan Activewear in a report on Friday, February 15th. One analyst has rated the stock with a sell rating, five have issued a hold rating, two have given a buy rating and one has issued a strong buy rating to the company. The company presently has an average rating of Hold and an average price target of $33.85.

NYSE GIL opened at $35.95 on Wednesday. The firm has a market cap of $7.25 billion, a PE ratio of 19.33, a PEG ratio of 1.43 and a beta of 0.82. The company has a current ratio of 4.94, a quick ratio of 1.79 and a debt-to-equity ratio of 0.45. Gildan Activewear has a 1-year low of $25.33 and a 1-year high of $36.66.

Gildan Activewear (NYSE:GIL) (TSE:GIL) last released its quarterly earnings results on Thursday, February 21st. The textile maker reported $0.43 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.01). The firm had revenue of $743.00 million for the quarter, compared to the consensus estimate of $718.48 million. Gildan Activewear had a net margin of 12.06% and a return on equity of 20.12%. Gildan Activewear’s quarterly revenue was up 13.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.31 earnings per share. As a group, analysts forecast that Gildan Activewear will post 2.06 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Monday, April 1st. Investors of record on Thursday, March 7th will be issued a $0.134 dividend. This is a boost from Gildan Activewear’s previous quarterly dividend of $0.09. This represents a $0.54 dividend on an annualized basis and a yield of 1.49%. The ex-dividend date of this dividend is Wednesday, March 6th. Gildan Activewear’s dividend payout ratio (DPR) is currently 24.19%.

A number of institutional investors have recently made changes to their positions in GIL. Southpoint Capital Advisors LP bought a new position in Gildan Activewear in the 3rd quarter worth $129,327,000. Pzena Investment Management LLC purchased a new stake in Gildan Activewear in the 4th quarter worth $60,293,000. Eaton Vance Management purchased a new stake in Gildan Activewear in the 3rd quarter worth $46,533,000. Nokota Management LP purchased a new stake in Gildan Activewear in the 3rd quarter worth $29,203,000. Finally, Federated Investors Inc. PA purchased a new stake in Gildan Activewear in the 3rd quarter worth $21,344,000. 69.79% of the stock is currently owned by institutional investors.

About Gildan Activewear

Gildan Activewear Inc manufactures and sells a range of apparel products in the United States, Canada, Mexico, Europe, the Asia-Pacific, and Latin America. It operates in two segments, Printwear and Branded Apparel. The company manufactures and markets active wear products, including T-shirts, fleece tops and bottoms, and sport shirts under Gildan, Gildan Performance, Gildan Platinum, Gildan Hammer, Smart Basics, Comfort Colors, American Apparel, Anvil, Alstyle, Gold Toe, and Mossy Oak brands.

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