Gildan Activewear, Inc. (NYSE:GIL – Get Free Report) (TSE:GIL) saw strong trading volume on Wednesday . Approximately 1,594,666 shares were traded during trading, an increase of 17% from the previous session’s volume of 1,361,015 shares.The stock last traded at $52.9090 and had previously closed at $50.34.
Gildan Activewear News Roundup
Here are the key news stories impacting Gildan Activewear this week:
- Negative Sentiment: A forensic research report alleged Gildan may have used channel stuffing and inflated distributor inventory, raising questions about the quality of reported sales and revenue recognition. Article: Gildan Activewear Inc. (GIL) Shares Tumble 18% Amid Activist Forensic Report…
- Negative Sentiment: Multiple law firms announced securities-fraud investigations following the stock drop, adding legal overhang and signaling that investors are treating the allegations as potentially serious. Article: Securities Fraud Investigation Into Gildan Activewear Inc. (GIL) Announced
- Negative Sentiment: Media reports said the shares dropped as much as 25% on the short-seller growth accusations, reinforcing the market’s concern about possible accounting or demand issues. Article: Gildan share price drops as much as 25 per cent on short seller growth accusations
- Negative Sentiment: Additional investigations from other law firms followed, increasing uncertainty around the company’s disclosures and near-term sentiment. Article: Gildan Activewear Investigation Initiated: Levi & Korsinsky Investigates…
- Neutral Sentiment: Before the short-seller controversy, analysts had been constructive, with Scotia trimming its price target to $65 while keeping a sector-outperform rating. Article: Analyst rating update
Analysts Set New Price Targets
GIL has been the subject of several analyst reports. Weiss Ratings lowered shares of Gildan Activewear from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, May 18th. Canadian Imperial Bank of Commerce reiterated an “outperform” rating and issued a $77.00 price objective on shares of Gildan Activewear in a report on Friday, May 1st. Zacks Research raised shares of Gildan Activewear from a “strong sell” rating to a “hold” rating in a research report on Friday, May 1st. TD Securities restated a “buy” rating on shares of Gildan Activewear in a research note on Tuesday. Finally, Scotiabank reaffirmed a “sector outperform” rating and set a $65.00 target price (down from $72.00) on shares of Gildan Activewear in a research report on Wednesday. Thirteen analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $78.21.
Gildan Activewear Price Performance
The company has a market cap of $9.61 billion, a P/E ratio of 30.54 and a beta of 1.08. The company’s 50-day moving average price is $58.20 and its two-hundred day moving average price is $61.47. The company has a current ratio of 2.35, a quick ratio of 1.17 and a debt-to-equity ratio of 1.32.
Gildan Activewear (NYSE:GIL – Get Free Report) (TSE:GIL) last issued its quarterly earnings results on Thursday, April 30th. The textile maker reported $0.43 EPS for the quarter, topping the consensus estimate of $0.36 by $0.07. The business had revenue of $1.17 billion for the quarter, compared to analysts’ expectations of $1.14 billion. Gildan Activewear had a net margin of 6.10% and a return on equity of 21.38%. The company’s quarterly revenue was up 63.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.59 earnings per share. Gildan Activewear has set its FY 2026 guidance at 4.200-4.400 EPS. As a group, sell-side analysts expect that Gildan Activewear, Inc. will post 4.25 earnings per share for the current year.
Gildan Activewear Dividend Announcement
The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Wednesday, May 20th were paid a dividend of $0.249 per share. The ex-dividend date was Wednesday, May 20th. This represents a $1.00 annualized dividend and a yield of 1.9%. Gildan Activewear’s dividend payout ratio (DPR) is 58.82%.
Institutional Trading of Gildan Activewear
Several institutional investors have recently added to or reduced their stakes in the business. Caisse de depot et placement du Quebec lifted its position in shares of Gildan Activewear by 1,695.7% in the 4th quarter. Caisse de depot et placement du Quebec now owns 6,240,014 shares of the textile maker’s stock worth $390,539,000 after buying an additional 5,892,514 shares during the last quarter. Norges Bank acquired a new stake in Gildan Activewear during the fourth quarter worth about $151,018,000. Mackenzie Financial Corp lifted its holdings in Gildan Activewear by 41.2% in the fourth quarter. Mackenzie Financial Corp now owns 6,860,108 shares of the textile maker’s stock worth $429,382,000 after acquiring an additional 2,001,279 shares during the last quarter. Brandes Investment Partners LP bought a new position in Gildan Activewear in the fourth quarter worth about $99,870,000. Finally, Vanguard Group Inc. boosted its stake in Gildan Activewear by 26.0% in the fourth quarter. Vanguard Group Inc. now owns 7,566,962 shares of the textile maker’s stock valued at $472,964,000 after acquiring an additional 1,561,729 shares during the period. Institutional investors own 82.83% of the company’s stock.
About Gildan Activewear
Gildan Activewear Inc (NYSE:GIL) is a vertically integrated manufacturer and wholesaler of branded basic apparel, including activewear, socks, hosiery and underwear. Headquartered in Montreal, Quebec, the company produces a wide range of products such as T-shirts, fleece garments, sport shirts, performance wear, and shapewear under its Gildan, Anvil, Comfort Colors, Gold Toe, Peds and Silks brands. Leveraging its in-house knitting, dyeing, cut-and-sew and finishing operations, Gildan supplies blank apparel to screen printers, promotional product distributors and major retailers around the world.
Since its founding in 1984 by Glenn J.
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