Gildan Activewear (GIL) to Repurchase 4,600,000 Outstanding Stock
Gildan Activewear (NYSE:GIL) (TSE:GIL) declared that its board has initiated a share buyback program, which permits the company to buyback 4,600,000 shares on Thursday, November 2nd, EventVestor reports. This buyback authorization permits the textile maker to repurchase shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board believes its shares are undervalued.
GIL has been the subject of a number of research reports. Zacks Investment Research upgraded Gildan Activewear from a “hold” rating to a “buy” rating and set a $35.00 price objective for the company in a report on Tuesday, August 29th. BMO Capital Markets reiterated 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. Finally, Canaccord Genuity set a $32.00 price objective on Gildan Activewear and gave the stock a “buy” rating in a report on Friday, July 7th. Eight equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average target price of $34.71.
Shares of Gildan Activewear (NYSE GIL) traded down $0.35 during midday trading on Friday, reaching $28.95. The company had a trading volume of 1,180,899 shares, compared to its average volume of 509,820. The company has a debt-to-equity ratio of 0.34, a current ratio of 5.55 and a quick ratio of 1.88. The stock has a market capitalization of $6.55 billion, a price-to-earnings ratio of 16.87, a PEG ratio of 1.26 and a beta of 0.74.
Gildan Activewear (NYSE:GIL) (TSE:GIL) last issued its earnings results on Thursday, November 2nd. The textile maker reported $0.53 EPS for the quarter, topping analysts’ consensus estimates of $0.51 by $0.02. Gildan Activewear had a net margin of 14.21% and a return on equity of 18.73%. The company had revenue of $716.40 million for the quarter, compared to the consensus estimate of $748.86 million. During the same period in the previous year, the firm earned $0.50 earnings per share. Gildan Activewear’s quarterly revenue was up .2% compared to the same quarter last year. equities analysts forecast that Gildan Activewear will post 1.71 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Monday, December 11th. Shareholders of record on Thursday, November 16th will be paid a dividend of $0.094 per share. This represents a $0.38 dividend on an annualized basis and a yield of 1.30%. The ex-dividend date is Wednesday, November 15th. Gildan Activewear’s dividend payout ratio (DPR) is presently 22.02%.
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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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