Gildan Activewear, Inc. (NYSE:GIL) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Gildan Activewear now has a consensus analyst rating of “Moderate Buy”, with 13 buy ratings and 4 hold ratings across 17 firms. The average 12-month price target is about $78.21.
• Several firms recently adjusted their views, including Scotia and Scotiabank trimming their price target to $65 while maintaining a sector outperform rating, and UBS Group and TD Securities reiterating buy ratings.
• The stock is facing legal uncertainty after short-seller allegations triggered multiple securities-fraud investigations, though Gildan has denied wrongdoing and said its disclosures are accurate.

Gildan Activewear, Inc. (NYSE:GIL - Get Free Report) TSE: GIL has earned an average recommendation of "Moderate Buy" from the seventeen ratings firms that are presently covering the firm, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold rating and thirteen have issued a buy rating on the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $78.2143.

A number of research firms recently commented on GIL. Weiss Ratings cut shares of Gildan Activewear from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, May 18th. Scotia decreased their price objective on Gildan Activewear from $72.00 to $65.00 and set a "sector outperform" rating for the company in a report on Wednesday. UBS Group reissued a "buy" rating on shares of Gildan Activewear in a research report on Wednesday, June 3rd. Scotiabank reissued 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. Finally, TD Securities reissued a "buy" rating on shares of Gildan Activewear in a research report on Tuesday.

Key Gildan Activewear News

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

• Positive Sentiment: Scotia still kept an “sector outperform” rating on Gildan while trimming its price target to $65 from $72, suggesting the stock may still have upside from current levels.
• Neutral Sentiment: Multiple law firms, including Glancy Prongay Wolke & Rotter, Siskinds LLP, Johnson Fistel, Block & Leviton, Rosen Law Firm, and others, announced securities-fraud investigations tied to the short-seller allegations. These notices add legal uncertainty but are still preliminary. Glancy Prongay Wolke & Rotter LLP investigation
• Neutral Sentiment: Gildan issued a statement denying any wrongdoing and saying its financial and governance disclosures are accurate, which may help limit long-term damage if the company can prove the short report wrong. Gildan Activewear issues statement regarding recent short seller report
• Negative Sentiment: The short-seller allegations and resulting stock drop have sparked a wave of legal scrutiny, which can weigh on sentiment and increase volatility until investors get clearer evidence on sales, inventory, and accounting practices.

Gildan Activewear Stock Up 5.5%

Shares of GIL stock opened at $53.11 on Thursday. The company's fifty day simple moving average is $58.24 and its two-hundred day simple moving average is $61.50. Gildan Activewear has a 52 week low of $46.00 and a 52 week high of $73.69. The company has a quick ratio of 1.17, a current ratio of 2.35 and a debt-to-equity ratio of 1.32. The stock has a market cap of $9.83 billion, a P/E ratio of 31.24 and a beta of 1.08.

Gildan Activewear (NYSE:GIL - Get Free Report) TSE: GIL last posted its earnings results on Thursday, April 30th. The textile maker reported $0.43 earnings per share for the quarter, beating analysts' consensus estimates of $0.36 by $0.07. Gildan Activewear had a net margin of 6.10% and a return on equity of 21.38%. The firm had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.14 billion. During the same period last year, the firm posted $0.59 earnings per share. Gildan Activewear's revenue for the quarter was up 63.8% compared to the same quarter last year. Gildan Activewear has set its FY 2026 guidance at 4.200-4.400 EPS. Analysts predict that Gildan Activewear will post 4.25 EPS for the current fiscal year.

Gildan Activewear Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Wednesday, May 20th were given a $0.249 dividend. This represents a $1.00 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend was Wednesday, May 20th. Gildan Activewear's dividend payout ratio (DPR) is presently 58.82%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Webster Bank N. A. purchased a new position in Gildan Activewear during the 4th quarter worth approximately $25,000. Islay Capital Management LLC purchased a new position in shares of Gildan Activewear during the 4th quarter valued at approximately $25,000. Larson Financial Group LLC lifted its position in shares of Gildan Activewear by 3,516.7% during the 4th quarter. Larson Financial Group LLC now owns 434 shares of the textile maker's stock valued at $27,000 after buying an additional 422 shares in the last quarter. Smartleaf Asset Management LLC increased its stake in Gildan Activewear by 161.8% during the 2nd quarter. Smartleaf Asset Management LLC now owns 555 shares of the textile maker's stock worth $27,000 after buying an additional 343 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its stake in Gildan Activewear by 14,833.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 448 shares of the textile maker's stock worth $28,000 after buying an additional 445 shares in the last quarter. 82.83% of the stock is owned by institutional investors and hedge funds.

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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