Gildan Activewear (NYSE:GIL) Stock Rating Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Gildan Activewear from “hold” to “strong sell.” Despite the downgrade, analyst consensus remains “Moderate Buy,” with a $57.42 average price target.
• Gildan’s latest quarter came in below expectations: earnings were $1.54 per share versus $1.57 forecast, while revenue was $1.47 billion compared with $1.62 billion expected.
• The stock opened at $35.67 and has fallen substantially from its 52-week high of $73.69. The article also notes investor concerns over a securities class action, whose claims are allegations, not established findings.

Gildan Activewear (NYSE:GIL - Get Free Report) TSE: GIL was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Monday, Zacks reports.

Several other brokerages have also recently issued reports on GIL. Royal Bank Of Canada dropped their price objective on Gildan Activewear from $70.00 to $50.00 and set an "outperform" rating on the stock in a research note on Friday, November 6th. TD decreased their target price on Gildan Activewear from $80.00 to $54.00 and set a "buy" rating for the company in a research report on Thursday, September 24th. Weiss Ratings reissued a "hold (c)" rating on shares of Gildan Activewear in a research report on Thursday, August 13th. BMO Capital Markets reiterated an "outperform" rating and set a $40.00 target price on shares of Gildan Activewear in a report on Monday. Finally, TD Cowen restated a "buy" rating on shares of Gildan Activewear in a report on Friday. Nine analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Gildan Activewear has a consensus rating of "Moderate Buy" and a consensus target price of $57.42.

Gildan Activewear Price Performance

Gildan Activewear stock opened at $35.67 on Monday. The stock has a market cap of $6.61 billion, a price-to-earnings ratio of 31.85 and a beta of 1.15. The company has a debt-to-equity ratio of 1.07, a current ratio of 2.32 and a quick ratio of 1.22. Gildan Activewear has a 1 year low of $31.33 and a 1 year high of $73.69. The firm has a 50-day moving average of $43.18 and a two-hundred day moving average of $54.86.

Gildan Activewear (NYSE:GIL - Get Free Report) TSE: GIL last issued its earnings results on Thursday, November 5th. The textile maker reported $1.54 EPS for the quarter, missing analysts' consensus estimates of $1.57 by ($0.03). Gildan Activewear had a return on equity of 21.76% and a net margin of 3.77%. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.62 billion. On average, research analysts forecast that Gildan Activewear will post 4.37 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in GIL. Hara Capital LLC acquired a new stake in Gildan Activewear in the second quarter worth about $57,000. Fifth Third Bancorp raised its position in shares of Gildan Activewear by 16.5% in the 1st quarter. Fifth Third Bancorp now owns 1,355 shares of the textile maker's stock valued at $75,000 after purchasing an additional 192 shares during the last quarter. Global Retirement Partners LLC acquired a new stake in Gildan Activewear in the 2nd quarter worth approximately $75,000. Guardian Partners Inc. boosted its stake in Gildan Activewear by 56.9% in the 3rd quarter. Guardian Partners Inc. now owns 1,785 shares of the textile maker's stock worth $76,000 after purchasing an additional 647 shares in the last quarter. Finally, Fulcrum Asset Management LLP purchased a new stake in Gildan Activewear during the 3rd quarter worth approximately $80,000. 82.83% of the stock is owned by institutional investors and hedge funds.

More Gildan Activewear News

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

• Positive Sentiment: One investor alert says Gildan reported rising sales and reaffirmed its 2026 outlook, which could offer some support; however, the alert also highlights allegations that revenue was pulled forward. Article
• Negative Sentiment: The filed class action alleges Gildan misled investors during February 19, 2025–June 15, 2026, including through channel stuffing, distributor incentives, and revenue inflation. One notice cites roughly $500 million in pulled-forward revenue; these claims are allegations, not established findings. The lawsuit follows a reported 18%–18.7% stock drop. Article
• Negative Sentiment: Repeated law-firm notices may keep legal and reputational concerns in focus. Investors who bought during the stated class period have until December 14, 2026, to seek lead-plaintiff status. Article

About Gildan Activewear

Gildan Activewear Inc. is a Canadian apparel manufacturer headquartered in Montreal. Founded in 1984, the company produces and sells basic apparel, including T-shirts, fleece, underwear, socks and hosiery. Its brands include Gildan, American Apparel and Comfort Colors. The company serves wholesale distributors, screen printers, retailers and other customers, supplying products for both imprinting and everyday wear. Its vertically integrated operations span the manufacturing process, from yarn production and fabric-making to garment assembly and distribution.

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