Gildan Activewear (NYSE:GIL) Cut to "Hold" at Wall Street Zen

Key Points

• Gildan Activewear has been downgraded from a "buy" rating to a "hold" rating by Wall Street Zen amid mixed analyst opinions on the stock.
• The company reported a 6.5% increase in revenue year-over-year, achieving $0.97 earnings per share, which exceeded analysts' expectations.
• Investors have shown increased interest, with hedge funds owning 82.83% of Gildan Activewear's stock, following substantial stake increases by several institutional investors.

Gildan Activewear (NYSE:GIL - Get Free Report) TSE: GIL was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other research analysts also recently weighed in on GIL. Cfra Research raised Gildan Activewear to a "hold" rating in a research note on Monday, August 4th. UBS Group upped their price objective on shares of Gildan Activewear from $56.00 to $70.00 and gave the company a "buy" rating in a research report on Tuesday, July 29th. BMO Capital Markets restated an "outperform" rating on shares of Gildan Activewear in a research report on Thursday, August 14th. Citigroup set a $60.00 price objective on shares of Gildan Activewear and gave the company a "buy" rating in a research report on Thursday, August 14th. Finally, CIBC upped their price objective on shares of Gildan Activewear from $56.00 to $60.00 and gave the company an "outperformer" rating in a research report on Friday, August 1st. Eleven equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $64.58.

Gildan Activewear Trading Down 1.4%

NYSE:GIL traded down $0.79 during trading hours on Friday, hitting $54.13. 498,598 shares of the stock were exchanged, compared to its average volume of 780,090. The company's 50 day moving average is $52.89 and its two-hundred day moving average is $48.75. Gildan Activewear has a twelve month low of $37.16 and a twelve month high of $57.76. The company has a quick ratio of 1.67, a current ratio of 3.87 and a debt-to-equity ratio of 1.37. The company has a market capitalization of $8.07 billion, a P/E ratio of 17.19, a price-to-earnings-growth ratio of 1.79 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 (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.01. Gildan Activewear had a return on equity of 34.31% and a net margin of 14.55%.The firm had revenue of $918.50 million for the quarter, compared to the consensus estimate of $908.41 million. During the same quarter in the prior year, the business earned $0.74 EPS. The business's revenue for the quarter was up 6.5% compared to the same quarter last year. Gildan Activewear has set its FY 2025 guidance at 3.400-3.560 EPS. On average, sell-side analysts anticipate that Gildan Activewear will post 3.48 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Gildan Activewear

Several hedge funds have recently modified their holdings of GIL. Maseco LLP bought a new position in shares of Gildan Activewear in the 2nd quarter valued at about $26,000. Smartleaf Asset Management LLC grew its holdings in shares of Gildan Activewear by 161.8% in the 2nd quarter. Smartleaf Asset Management LLC now owns 555 shares of the textile maker's stock valued at $27,000 after acquiring an additional 343 shares in the last quarter. Olde Wealth Management LLC bought a new position in shares of Gildan Activewear in the 1st quarter valued at about $29,000. Twin Tree Management LP acquired a new stake in Gildan Activewear in the 1st quarter valued at about $29,000. Finally, Versant Capital Management Inc lifted 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 during the last quarter. Institutional investors own 82.83% of the company's stock.

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.