Gildan Activewear (NYSE:GIL) Trading 7.2% Higher After Strong Earnings

Shares of Gildan Activewear Inc. (NYSE:GIL - Get Free Report) TSE: GIL rose 7.2% during trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $45.95 and last traded at $45.98. Approximately 229,782 shares were traded during mid-day trading, a decline of 64% from the average daily volume of 646,792 shares. The stock had previously closed at $42.90.

The textile maker reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.57 by $0.02. Gildan Activewear had a return on equity of 28.80% and a net margin of 12.26%. The firm had revenue of $711.70 million for the quarter, compared to analysts' expectations of $715.29 million. During the same quarter last year, the business earned $0.59 EPS. The company's quarterly revenue was up 2.3% compared to the same quarter last year.

Gildan Activewear Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, April 7th. Shareholders of record on Wednesday, March 12th were issued a $0.226 dividend. The ex-dividend date of this dividend was Wednesday, March 12th. This represents a $0.90 dividend on an annualized basis and a yield of 1.97%. This is an increase from Gildan Activewear's previous quarterly dividend of $0.15. Gildan Activewear's payout ratio is currently 36.00%.

Analyst Ratings Changes

A number of research firms have recently weighed in on GIL. CIBC lifted their price target on shares of Gildan Activewear from $56.00 to $60.00 and gave the company an "outperform" rating in a research report on Thursday, February 20th. TD Securities increased their price target on shares of Gildan Activewear from $62.00 to $65.00 and gave the stock a "buy" rating in a research report on Thursday, February 20th. Canaccord Genuity Group boosted their price objective on shares of Gildan Activewear from $53.00 to $58.00 and gave the company a "buy" rating in a research report on Thursday, February 20th. BMO Capital Markets lifted their price target on Gildan Activewear from $58.00 to $64.00 and gave the company an "outperform" rating in a research note on Thursday, February 20th. Finally, Stifel Nicolaus upped their price objective on Gildan Activewear from $60.00 to $65.00 and gave the stock a "buy" rating in a research report on Thursday, February 20th. Nine analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, Gildan Activewear has an average rating of "Buy" and an average price target of $59.10.

Hedge Funds Weigh In On Gildan Activewear

A number of hedge funds and other institutional investors have recently modified their holdings of GIL. Plato Investment Management Ltd purchased a new position in Gildan Activewear in the fourth quarter worth $28,000. Olde Wealth Management LLC bought a new position in shares of Gildan Activewear during the 1st quarter valued at approximately $29,000. Versant Capital Management Inc raised its stake in shares of Gildan Activewear by 510.7% in the first quarter. Versant Capital Management Inc now owns 745 shares of the textile maker's stock valued at $33,000 after buying an additional 623 shares during the period. GAMMA Investing LLC lifted its holdings in Gildan Activewear by 4,323.5% during the first quarter. GAMMA Investing LLC now owns 752 shares of the textile maker's stock valued at $33,000 after purchasing an additional 735 shares during the last quarter. Finally, Fifth Third Bancorp lifted its stake in shares of Gildan Activewear by 61.8% during the 4th quarter. Fifth Third Bancorp now owns 872 shares of the textile maker's stock valued at $41,000 after buying an additional 333 shares in the last quarter. Hedge funds and other institutional investors own 82.83% of the company's stock.

Gildan Activewear Stock Up 6.9 %

The company has a debt-to-equity ratio of 0.92, a current ratio of 2.22 and a quick ratio of 0.98. The stock has a market capitalization of $6.95 billion, a P/E ratio of 18.38, a price-to-earnings-growth ratio of 1.76 and a beta of 1.16. The stock has a fifty day moving average price of $45.39 and a 200 day moving average price of $47.82.

Gildan Activewear Company Profile

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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