Gildan Activewear (GIL) Cut 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 released on Wednesday.

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 research firms also recently weighed in on GIL. Bank of America raised Gildan Activewear from an underperform rating to a buy rating in a research report on Thursday, August 2nd. Desjardins downgraded Gildan Activewear from a buy rating to a hold rating in a research report on Friday, August 3rd. They noted that the move was a valuation call. ValuEngine raised Gildan Activewear from a sell rating to a hold rating in a research report on Friday, August 3rd. TD Securities raised their price target on Gildan Activewear from $35.00 to $36.00 and gave the stock a buy rating in a research report on Friday, August 3rd. Finally, Royal Bank of Canada raised their price target on Gildan Activewear from $32.00 to $33.00 and gave the stock a sector perform rating in a research report on Friday, August 3rd. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and four have given a buy rating to the company. The company presently has an average rating of Hold and a consensus target price of $33.00.

GIL stock traded up $0.34 during midday trading on Wednesday, hitting $29.15. 706,314 shares of the stock were exchanged, compared to its average volume of 498,186. The stock has a market cap of $6.32 billion, a PE ratio of 16.95, a P/E/G ratio of 1.38 and a beta of 0.79. Gildan Activewear has a fifty-two week low of $25.33 and a fifty-two week high of $34.19. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.76 and a current ratio of 5.06.

Gildan Activewear (NYSE:GIL) (TSE:GIL) last released its quarterly earnings results on Thursday, August 2nd. The textile maker reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.49 by $0.03. The company had revenue of $764.20 million during the quarter, compared to the consensus estimate of $728.72 million. Gildan Activewear had a return on equity of 18.53% and a net margin of 12.51%. Gildan Activewear’s revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the business posted $0.48 earnings per share. As a group, equities research analysts predict that Gildan Activewear will post 1.88 earnings per share for the current year.

A number of institutional investors have recently added to or reduced their stakes in GIL. Global X Management Co LLC grew its position in shares of Gildan Activewear by 145.3% in the second quarter. Global X Management Co LLC now owns 6,390 shares of the textile maker’s stock valued at $180,000 after purchasing an additional 3,785 shares during the period. Lester Murray Antman dba SimplyRich purchased a new stake in shares of Gildan Activewear in the second quarter valued at $205,000. Allianz Asset Management GmbH purchased a new stake in shares of Gildan Activewear in the first quarter valued at $208,000. Jane Street Group LLC purchased a new stake in shares of Gildan Activewear in the second quarter valued at $221,000. Finally, Cornerstone Wealth Management LLC purchased a new stake in shares of Gildan Activewear in the second quarter valued at $250,000. 70.80% of the stock is owned by institutional investors.

Gildan Activewear Company Profile

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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