Gildan Activewear, Inc. (NYSE:GIL) Sees Large Increase in Short Interest

Key Points

• Gildan Activewear saw a **55.8% increase** in short interest, totaling **5,080,000 shares** as of August 31st, indicating heightened investor skepticism about the stock.
• Despite the increase in short interest, the stock has received mostly positive ratings from analysts, with a **consensus rating of "Moderate Buy"** and a price target of **$64.58**.
• Gildan Activewear announced a **quarterly dividend** of **$0.226 per share**, representing an annualized dividend yield of **1.6%** and a payout ratio of **28.57%**.

Gildan Activewear, Inc. (NYSE:GIL - Get Free Report) TSE: GIL was the recipient of a large growth in short interest in the month of August. As of August 31st, there was short interest totaling 5,080,000 shares, a growth of 55.8% from the August 15th total of 3,260,000 shares. Approximately 3.5% of the company's shares are sold short. Based on an average daily trading volume, of 922,200 shares, the days-to-cover ratio is presently 5.5 days. Based on an average daily trading volume, of 922,200 shares, the days-to-cover ratio is presently 5.5 days. Approximately 3.5% of the company's shares are sold short.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. BMO Capital Markets restated an "outperform" rating on shares of Gildan Activewear in a report on Thursday, August 14th. Royal Bank Of Canada upped their price target on Gildan Activewear from $61.00 to $68.00 and gave the stock an "outperform" rating in a report on Thursday, August 14th. Wall Street Zen downgraded Gildan Activewear from a "buy" rating to a "hold" rating in a report on Saturday, September 6th. Stifel Nicolaus upped their price target on Gildan Activewear from $65.00 to $75.00 and gave the stock a "buy" rating in a report on Thursday, August 14th. Finally, Canaccord Genuity Group upped their price target on Gildan Activewear from $60.00 to $67.00 and gave the stock a "buy" rating in a report on Thursday, August 14th. Eleven research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $64.58.

Hedge Funds Weigh In On Gildan Activewear

Large investors have recently modified their holdings of the business. Maseco LLP purchased a new position in shares of Gildan Activewear during the 2nd quarter worth approximately $26,000. Smartleaf Asset Management LLC raised its stake in shares of 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. Twin Tree Management LP purchased a new position in shares of Gildan Activewear during the 1st quarter worth approximately $29,000. Olde Wealth Management LLC purchased a new position in shares of Gildan Activewear during the 1st quarter worth approximately $29,000. Finally, Versant Capital Management Inc increased its stake in Gildan Activewear by 510.7% in the 1st quarter. Versant Capital Management Inc now owns 745 shares of the textile maker's stock valued at $33,000 after purchasing an additional 623 shares in the last quarter. 82.83% of the stock is owned by hedge funds and other institutional investors.

Gildan Activewear Stock Performance

Gildan Activewear stock traded up $0.99 during mid-day trading on Monday, reaching $54.89. 1,050,213 shares of the company were exchanged, compared to its average volume of 1,282,216. Gildan Activewear has a twelve month low of $37.16 and a twelve month high of $57.76. The firm's 50-day simple moving average is $53.20 and its two-hundred day simple moving average is $48.72. The company has a debt-to-equity ratio of 1.37, a quick ratio of 1.67 and a current ratio of 3.87. The firm has a market cap of $8.18 billion, a PE ratio of 17.43, a price-to-earnings-growth ratio of 1.73 and a beta of 1.17.

Gildan Activewear (NYSE:GIL - Get Free Report) TSE: GIL last posted its quarterly earnings data on Thursday, July 31st. The textile maker reported $0.97 earnings per share for the quarter, topping analysts' consensus estimates of $0.96 by $0.01. Gildan Activewear had a return on equity of 34.31% and a net margin of 14.55%.The company had revenue of $918.50 million during the quarter, compared to analysts' expectations of $908.41 million. During the same period last year, the firm earned $0.74 EPS. The firm's revenue for the quarter was up 6.5% on a year-over-year basis. Gildan Activewear has set its FY 2025 guidance at 3.400-3.560 EPS. Equities analysts predict that Gildan Activewear will post 3.48 earnings per share for the current fiscal year.

Gildan Activewear Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Thursday, August 21st will be paid a dividend of $0.226 per share. This represents a $0.90 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Thursday, August 21st. Gildan Activewear's dividend payout ratio is 28.57%.

About Gildan Activewear

Gildan Activewear Inc manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Glidan Softstyle, Gildan Heavy Cotton, Gildan Ultra Cotton, Gildan DryBlend, Gildan HeavyBlend, Comfort Colors, and American Apparel brands.

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