Gildan Activewear (NYSE:GIL) Price Target Cut to $54.00 by Analysts at TD

Key Points

• TD cut Gildan Activewear’s price target from $80 to $54 while maintaining a “buy” rating, implying 31.76% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $76.50.
• Gildan shares fell 11.3% to $40.98, near their 52-week low of $40.13, on trading volume well above average.
• The company beat quarterly EPS expectations, reporting $1.28 versus the $1.11 consensus, while revenue rose 72.3% year over year to $1.58 billion but came in below estimates.

Gildan Activewear (NYSE:GIL - Get Free Report) TSE: GIL had its target price reduced by equities research analysts at TD from $80.00 to $54.00 in a report released on Thursday, BayStreet reports. The brokerage currently has a "buy" rating on the textile maker's stock. TD's price objective indicates a potential upside of 31.76% from the stock's previous close.

A number of other equities analysts have also weighed in on the stock. Weiss Ratings restated a "hold (c)" rating on shares of Gildan Activewear in a report on Thursday, August 13th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $82.00 price objective (up from $78.00) on shares of Gildan Activewear in a research report on Friday, July 31st. Scotia lifted their price objective on Gildan Activewear from $65.00 to $67.00 and gave the stock a "sector outperform" rating in a report on Friday, July 31st. Stifel Nicolaus set a $83.00 target price on Gildan Activewear and gave the stock a "buy" rating in a research report on Friday, July 31st. Finally, UBS Group upped their target price on shares of Gildan Activewear from $110.00 to $111.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Thirteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $76.50.

Gildan Activewear Stock Down 11.3%

NYSE GIL traded down $5.21 during trading hours on Thursday, reaching $40.98. 4,916,800 shares of the company's stock traded hands, compared to its average volume of 1,395,246. Gildan Activewear has a 52-week low of $40.13 and a 52-week high of $73.69. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.93 and a quick ratio of 1.01. The firm has a 50-day simple moving average of $52.78 and a 200 day simple moving average of $55.34. The firm has a market cap of $7.59 billion, a PE ratio of 78.94 and a beta of 1.08.

Gildan Activewear (NYSE:GIL - Get Free Report) TSE: GIL last released its earnings results on Thursday, July 30th. The textile maker reported $1.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.11 by $0.17. The firm had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.61 billion. Gildan Activewear had a net margin of 1.28% and a return on equity of 21.03%. The business's revenue was up 72.3% on a year-over-year basis. During the same period last year, the business earned $0.97 earnings per share. Sell-side analysts anticipate that Gildan Activewear will post 4.67 EPS for the current fiscal year.

Institutional Investors Weigh In On Gildan Activewear

Hedge funds and other institutional investors have recently made changes to their positions in the business. Caisse de depot et placement du Quebec bought a new stake in Gildan Activewear during the second quarter valued at approximately $601,931,000. Jupiter Topco LLC bought a new position in Gildan Activewear in the second quarter worth approximately $573,363,000. Janus Henderson Group PLC boosted its stake in shares of Gildan Activewear by 0.9% during the 1st quarter. Janus Henderson Group PLC now owns 10,593,203 shares of the textile maker's stock worth $589,508,000 after acquiring an additional 98,134 shares during the last quarter. Royal Bank of Canada grew its position in shares of Gildan Activewear by 20.9% during the 1st quarter. Royal Bank of Canada now owns 6,911,589 shares of the textile maker's stock valued at $384,629,000 after acquiring an additional 1,193,718 shares during the period. Finally, The Manufacturers Life Insurance Company increased its stake in shares of Gildan Activewear by 15.7% in the 1st quarter. The Manufacturers Life Insurance Company now owns 6,706,078 shares of the textile maker's stock worth $373,122,000 after purchasing an additional 909,001 shares in the last quarter. Hedge funds and other institutional investors own 82.83% of the company's stock.

Gildan Activewear Company Profile

Gildan Activewear Inc is a Canadian apparel manufacturer headquartered in Montreal, Quebec. Founded in 1984, the company produces and sells everyday basic apparel for consumers, retailers and the decorated-apparel market. Its products include T-shirts, fleece, underwear, socks, hosiery and other activewear and casualwear items.

Gildan markets products through a portfolio of brands that includes Gildan, American Apparel, Comfort Colors, Gold Toe and Peds. The company primarily serves wholesale distributors, screen printers and other apparel decorators, as well as retailers and private-label customers.

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