Zacks Investment Research upgraded shares of Hanesbrands Inc. (NYSE:HBI) from a hold rating to a buy rating in a research report released on Monday. The brokerage currently has $27.00 price objective on the textile maker’s stock.
According to Zacks, “Hanesbrands’ shares have outperformed the industry over the past six months. A well managed portfolio of brands combined with efficient business development and expansion strategies bodes well for the stock. The company has been gaining from its Champion Europe and Hanes Australasia buyouts. It has also been benefiting from sequential rise in organic sales. Furthermore, the Project Booster cost savings along with working capital initiatives are estimated to produce an additional annual run rate of $300 million of cash from operations by the end of 2019. However, Hanesbrands’ sales have lagged the Zacks Consensus Estimate in six of the past seven quarters, probably due to soft sales at its brick-and-mortar stores. The company also expects back-to-school shipments to fall in the third quarter. Further Hanesbrands’ performance is challenged by currency fluctuations and low international penetration.”
Several other research firms have also issued reports on HBI. BidaskClub lowered Hanesbrands from a buy rating to a hold rating in a report on Tuesday, August 1st. Cowen and Company set a $22.00 price objective on Hanesbrands and gave the company a hold rating in a research note on Thursday, August 24th. ValuEngine upgraded Hanesbrands from a hold rating to a buy rating in a research note on Thursday, July 6th. Morgan Stanley upped their price objective on Hanesbrands from $22.00 to $24.00 and gave the company an equal weight rating in a research note on Monday, August 7th. Finally, Vetr lowered Hanesbrands from a strong-buy rating to a buy rating and set a $26.36 price objective on the stock. in a research note on Monday, August 28th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and eleven have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of Buy and a consensus price target of $27.27.
Hanesbrands (NYSE:HBI) opened at 23.68 on Monday. The firm has a market cap of $8.63 billion, a price-to-earnings ratio of 15.52 and a beta of 0.72. Hanesbrands has a one year low of $18.91 and a one year high of $27.07. The stock’s 50 day moving average price is $24.53 and its 200-day moving average price is $22.78.
Hanesbrands (NYSE:HBI) last released its earnings results on Tuesday, August 1st. The textile maker reported $0.53 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.53. Hanesbrands had a return on equity of 64.80% and a net margin of 9.02%. The business had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.65 billion. During the same quarter in the prior year, the company posted $0.51 earnings per share. Hanesbrands’s revenue was up 11.8% on a year-over-year basis. Analysts forecast that Hanesbrands will post $1.99 earnings per share for the current year.
In related news, insider John T. Marsh sold 10,325 shares of the stock in a transaction that occurred on Monday, August 28th. The stock was sold at an average price of $24.27, for a total transaction of $250,587.75. Following the sale, the insider now owns 99,997 shares of the company’s stock, valued at $2,426,927.19. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Richard D. Moss sold 20,000 shares of the stock in a transaction that occurred on Friday, August 4th. The stock was sold at an average price of $24.08, for a total value of $481,600.00. Following the sale, the chief financial officer now directly owns 254,487 shares in the company, valued at approximately $6,128,046.96. The disclosure for this sale can be found here. Corporate insiders own 1.10% of the company’s stock.
A number of large investors have recently modified their holdings of the stock. Beacon Financial Group grew its position in Hanesbrands by 335.7% during the third quarter. Beacon Financial Group now owns 424,272 shares of the textile maker’s stock worth $10,454,000 after buying an additional 326,896 shares in the last quarter. Perpetual Ltd acquired a new stake in Hanesbrands during the second quarter worth approximately $712,000. Bogart Wealth LLC acquired a new stake in Hanesbrands during the second quarter worth approximately $366,000. Gs Investments Inc. acquired a new stake in Hanesbrands during the second quarter worth approximately $452,000. Finally, Sentry Investment Management LLC grew its position in Hanesbrands by 0.4% during the second quarter. Sentry Investment Management LLC now owns 24,878 shares of the textile maker’s stock worth $576,000 after buying an additional 109 shares in the last quarter. 94.38% of the stock is currently owned by institutional investors and hedge funds.
Hanesbrands Inc is a marketer of basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia/Pacific under apparel brands, such as Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Flexees, Gear for Sports and Berlei.
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