Gildan Activewear (NYSE:GIL) Trading 8.1% Higher on Strong Earnings

Gildan Activewear Inc. (NYSE:GILGet Rating) (TSE:GIL) shares traded up 8.1% during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $31.95 and last traded at $31.87. 16,777 shares were traded during mid-day trading, a decline of 98% from the average session volume of 841,285 shares. The stock had previously closed at $29.49.

The textile maker reported $0.86 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.06. Gildan Activewear had a return on equity of 32.40% and a net margin of 20.48%. The business had revenue of $895.60 million during the quarter, compared to the consensus estimate of $820.62 million. During the same period in the previous year, the business earned $0.68 EPS. The business’s quarterly revenue was up 19.9% on a year-over-year basis.

Gildan Activewear Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 19th. Stockholders of record on Thursday, August 25th will be issued a $0.169 dividend. This represents a $0.68 annualized dividend and a dividend yield of 2.18%. The ex-dividend date of this dividend is Wednesday, August 24th. Gildan Activewear’s payout ratio is currently 19.36%.

Analyst Upgrades and Downgrades

GIL has been the subject of several analyst reports. StockNews.com downgraded Gildan Activewear from a “buy” rating to a “hold” rating in a research note on Friday, May 13th. Canaccord Genuity Group upped their price objective on Gildan Activewear from $37.00 to $42.50 and gave the company a “buy” rating in a research note on Friday. TD Securities upped their price objective on Gildan Activewear from $43.00 to $44.00 and gave the company a “buy” rating in a research note on Friday. Desjardins reduced their price objective on Gildan Activewear from C$63.00 to C$55.00 in a research note on Friday, May 6th. Finally, National Bank Financial reduced their price objective on Gildan Activewear from C$64.00 to C$42.00 in a research note on Tuesday, July 12th. Two equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $45.13.

Hedge Funds Weigh In On Gildan Activewear

A number of large investors have recently modified their holdings of GIL. Benjamin Edwards Inc. acquired a new stake in shares of Gildan Activewear in the 4th quarter worth approximately $30,000. Maverick Capital Ltd. acquired a new stake in shares of Gildan Activewear in the 4th quarter worth approximately $33,000. Addison Advisors LLC acquired a new stake in shares of Gildan Activewear in the 1st quarter worth approximately $33,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Gildan Activewear by 180.9% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 927 shares of the textile maker’s stock worth $27,000 after acquiring an additional 597 shares during the period. Finally, Kempen Capital Management N.V. acquired a new stake in shares of Gildan Activewear in the 1st quarter worth approximately $148,000. 75.31% of the stock is owned by hedge funds and other institutional investors.

Gildan Activewear Trading Up 0.3 %

The firm has a market cap of $5.68 billion, a price-to-earnings ratio of 8.98, a PEG ratio of 1.14 and a beta of 1.36. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.54 and a current ratio of 3.33. The business has a fifty day moving average of $28.85 and a two-hundred day moving average of $33.79.

About Gildan Activewear

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Gildan Activewear Inc manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Comfort Colors, American Apparel, Alstyle, and GoldToe brands.

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