Gildan Activewear (TSE:GIL) Stock Price Up 7.2% After Analyst Upgrade

Gildan Activewear Inc. (TSE:GIL) (NYSE:GIL)’s share price was up 7.2% on Friday after National Bank Financial raised their price target on the stock from C$105.00 to C$107.00. National Bank Financial currently has an outperform rating on the stock. Gildan Activewear traded as high as C$78.65 and last traded at C$78.65. 477,690 shares were traded during trading, a decline of 22% from the average session volume of 610,396 shares. The stock had previously closed at C$73.37.

Separately, Desjardins set a C$108.00 price target on Gildan Activewear and gave the stock a “buy” rating in a report on Tuesday, July 28th. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of C$89.50.

Insider Buying and Selling at Gildan Activewear

In related news, Director Deepak Kumar Khandelwal purchased 5,000 shares of Gildan Activewear stock in a transaction dated Monday, May 11th. The stock was bought at an average price of C$79.80 per share, for a total transaction of C$399,000.00. Following the completion of the acquisition, the director directly owned 5,000 shares of the company’s stock, valued at C$399,000. This represents a ? increase in their ownership of the stock. 2.26% of the stock is owned by company insiders.

Key Stories Impacting Gildan Activewear

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

• Positive Sentiment: National Bank Financial raised its price target on Gildan from C$105 to C$107 and upgraded its stance to “outperform,” implying substantial potential upside. BayStreet.CA analyst rating report
• Positive Sentiment: Desjardins set a C$108 price target, adding to the evidence that analysts view the recent weakness in GIL as an attractive entry point. Desjardins price target report
• Positive Sentiment: Although reported quarterly results included a US$50 million loss, adjusted or underlying net earnings reportedly increased 32% year over year. The company also raised its profit outlook, which appears to be outweighing concerns about the headline loss. Gildan Activewear Q2 net earnings report
• Neutral Sentiment: Gildan reported quarterly revenue of approximately C$1.13 billion and EPS of C$1.82 in the company’s earnings release, providing a significant focus for investors assessing the strength of demand and margins. Gildan Q2 earnings snapshot
• Negative Sentiment: The company narrowed its full-year revenue outlook, while the reported quarterly loss could reinforce concerns about one-time costs and near-term operating performance. MarketWatch Gildan earnings report

Gildan Activewear Stock Performance

The stock has a fifty day simple moving average of C$76.47 and a 200-day simple moving average of C$82.18. The stock has a market cap of C$14.37 billion, a P/E ratio of 45.92, a PEG ratio of 4.55 and a beta of 1.50. The company has a debt-to-equity ratio of 145.29, a quick ratio of 0.87 and a current ratio of 1.93.

Gildan Activewear (TSE:GIL) (NYSE:GIL) last released its quarterly earnings results on Thursday, July 30th. The company reported C$1.82 earnings per share (EPS) for the quarter. The firm had revenue of C$1.13 billion for the quarter. Gildan Activewear had a return on equity of 2.12% and a net margin of 1.33%. On average, equities analysts expect that Gildan Activewear Inc. will post 4.5460385 earnings per share for the current year.

Gildan Activewear Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 15th were given a $0.249 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend was Wednesday, May 20th. Gildan Activewear’s dividend payout ratio (DPR) is currently 54.85%.

About Gildan Activewear

Gildan is a leading manufacturer of everyday basic apparel. The Company’s product offering includes activewear, underwear, socks, and intimates sold to a broad range of customers, including wholesale distributors, screenprinters, embellishers, retailers or e-commerce platforms, as well as global lifestyle brand companies. Gildan markets its products in North America, Europe, Asia Pacific, and Latin America, under a diversified portfolio of Company-owned brands including Gildan®, Hanes®, Comfort Colors®, American Apparel®, ALLPRO¿, GOLDTOE®, Peds®, Bali®, Playtex®, Maidenform®, Bonds®, as well as Champion® which is under an exclusive licensing agreement for the printwear channel in the U.S.