Scotiabank Forecasts Strong Price Appreciation for Gildan Activewear (NYSE:GIL) Stock

Key Points

• Scotiabank has raised its target price for Gildan Activewear from $59.00 to $62.00, reflecting a potential upside of 8.83% from current levels.
• Gildan Activewear reported a quarterly earnings per share (EPS) of $0.97, beating estimates and showing a 6.5% year-over-year revenue increase.
• Analysts demonstrate confidence in Gildan, with a consensus rating of "Moderate Buy" and an average target price of $62.58.

Gildan Activewear (NYSE:GIL - Free Report) TSE: GIL had its price target hoisted by Scotiabank from $59.00 to $62.00 in a research note issued to investors on Thursday, Marketbeat.com reports. Scotiabank currently has a sector outperform rating on the textile maker's stock.

Several other analysts also recently issued reports on GIL. Royal Bank Of Canada initiated coverage on Gildan Activewear in a report on Tuesday, August 5th. They issued an "outperform" rating and a $61.00 price target on the stock. National Bankshares raised their price target on Gildan Activewear from $78.00 to $80.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. BMO Capital Markets reissued an "outperform" rating on shares of Gildan Activewear in a report on Thursday. Barclays raised their price target on Gildan Activewear from $51.00 to $56.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Finally, TD Securities raised their price target on Gildan Activewear from $56.00 to $60.00 and gave the stock a "buy" rating in a report on Wednesday, April 30th. One research analyst has rated the stock with a hold rating and twelve have given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $64.58.

Gildan Activewear Stock Performance

NYSE:GIL traded up $0.20 during trading hours on Thursday, reaching $56.44. 2,015,013 shares of the stock were exchanged, compared to its average volume of 1,043,535. 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 firm has a 50 day simple moving average of $50.47 and a 200-day simple moving average of $48.40. Gildan Activewear has a 52 week low of $37.16 and a 52 week high of $57.76. The stock has a market capitalization of $8.42 billion, a P/E ratio of 17.92, a P/E/G ratio of 1.81 and a beta of 1.17.

Gildan Activewear (NYSE:GIL - Get Free Report) TSE: GIL last released its earnings results on Thursday, July 31st. The textile maker reported $0.97 EPS 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 for the quarter, compared to the consensus estimate of $908.41 million. During the same quarter last year, the business posted $0.74 EPS. Gildan Activewear's quarterly revenue was up 6.5% compared to the same quarter last year. As a group, sell-side analysts forecast that Gildan Activewear will post 3.48 earnings per share for the current fiscal year.

Gildan Activewear Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Thursday, August 21st will be given a $0.226 dividend. This represents a $0.90 annualized dividend and a yield of 1.6%. The ex-dividend date is Thursday, August 21st. Gildan Activewear's dividend payout ratio (DPR) is currently 28.57%.

Institutional Trading of Gildan Activewear

Several large investors have recently added to or reduced their stakes in GIL. Norges Bank acquired a new stake in Gildan Activewear in the 2nd quarter valued at approximately $101,409,000. Mackenzie Financial Corp increased its position in shares of Gildan Activewear by 61.9% during the 2nd quarter. Mackenzie Financial Corp now owns 4,434,020 shares of the textile maker's stock valued at $218,622,000 after purchasing an additional 1,695,329 shares during the period. Picton Mahoney Asset Management acquired a new position in shares of Gildan Activewear during the 2nd quarter valued at $65,409,000. The Manufacturers Life Insurance Company increased its position in shares of Gildan Activewear by 276.9% during the 4th quarter. The Manufacturers Life Insurance Company now owns 1,769,634 shares of the textile maker's stock valued at $83,394,000 after purchasing an additional 1,300,121 shares during the period. Finally, The Manufacturers Life Insurance Company increased its position in shares of Gildan Activewear by 67.2% during the 1st quarter. The Manufacturers Life Insurance Company now owns 2,959,555 shares of the textile maker's stock valued at $131,556,000 after purchasing an additional 1,189,921 shares during the period. 82.83% of the stock is currently owned by institutional investors and hedge funds.

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.