Gildan Activewear (TSE:GIL) Shares Up 7.2% - Still a Buy?

Key Points

• Gildan Activewear shares jumped 7.2% to C$78.65, although trading volume was 22% below the average session volume.
• Analyst sentiment remains positive, with three Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of C$88.00; recent targets range from C$101 to C$108.
• The company reported C$1.82 in quarterly EPS on C$1.13 billion in revenue and pays an annualized C$1.00 dividend, yielding about 1.3%. A director also bought 5,000 shares at C$79.80 each.

Gildan Activewear Inc. (TSE:GIL - Get Free Report) NYSE: GIL's stock price traded up 7.2% on Friday . The stock traded as high as C$78.65 and last traded at C$78.65. 477,690 shares traded hands during trading, a decline of 22% from the average session volume of 610,396 shares. The stock had previously closed at C$73.37.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. National Bank Financial upped their price target on shares of Gildan Activewear from C$100.00 to C$101.00 and gave the company an "outperform" rating in a report on Friday, May 1st. Desjardins set a C$108.00 price target on Gildan Activewear and gave the stock a "buy" rating in a research report on Tuesday. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Gildan Activewear has an average rating of "Moderate Buy" and an average price target of C$88.00.

Gildan Activewear Stock Up 7.0%

The firm has a 50-day simple moving average of C$76.52 and a 200 day simple moving average of C$82.21. The company has a market capitalization of C$14.54 billion, a PE ratio of 46.47, a price-to-earnings-growth ratio of 4.55 and a beta of 1.50. The company has a debt-to-equity ratio of 147.07, a current ratio of 2.35 and a quick ratio of 0.87.

Gildan Activewear (TSE:GIL - Get Free Report) NYSE: GIL last issued its earnings results on Thursday, July 30th. The company reported C$1.82 earnings per share for the quarter. Gildan Activewear had a return on equity of 10.08% and a net margin of 6.14%.The company had revenue of C$1.13 billion during the quarter. On average, research analysts predict that Gildan Activewear Inc. will post 4.5460385 EPS for the current fiscal year.

Gildan Activewear Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 15th were issued a $0.249 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date was Wednesday, May 20th. Gildan Activewear's dividend payout ratio is currently 54.85%.

Insider Transactions at Gildan Activewear

In other news, Director Deepak Kumar Khandelwal acquired 5,000 shares of the stock in a transaction on Monday, May 11th. The stock was bought at an average price of C$79.80 per share, with a total value of C$399,000.00. Following the completion of the transaction, the director directly owned 5,000 shares of the company's stock, valued at C$399,000. The trade was a ∞ increase in their ownership of the stock. 2.26% of the stock is owned by company insiders.

Gildan Activewear Company Profile

Gildan is a leading manufacturer of everyday basic apparel. The Company's product offering includes activewear, underwear, socks, and intimates sold to a broad range of customers, including wholesale distributors, screenprinters, embellishers, retailers or e-commerce platforms, as well as global lifestyle brand companies. Gildan markets its products in North America, Europe, Asia Pacific, and Latin America, under a diversified portfolio of Company-owned brands including Gildan®, Hanes®, Comfort Colors®, American Apparel®, ALLPRO¿, GOLDTOE®, Peds®, Bali®, Playtex®, Maidenform®, Bonds®, as well as Champion® which is under an exclusive licensing agreement for the printwear channel in the U.S.

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