Hanesbrands (NYSE:HBI) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Hanesbrands Inc. gapped up in trading, opening at $5.05 after reporting quarterly earnings of $0.24 EPS, beating analyst estimates by $0.06.
• The company's revenue declined by 0.4% compared to the same period last year, despite a return on equity of 262.15%.
• Brokerage firms have varied ratings for Hanesbrands, with a current average rating of "Hold" and a price target averaging $5.75.

Shares of Hanesbrands Inc. (NYSE:HBI - Get Free Report) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $4.17, but opened at $5.05. Hanesbrands shares last traded at $4.91, with a volume of 2,997,291 shares traded.

The textile maker reported $0.24 EPS for the quarter, beating analysts' consensus estimates of $0.18 by $0.06. Hanesbrands had a positive return on equity of 262.15% and a negative net margin of 8.12%. The business's revenue for the quarter was down .4% compared to the same quarter last year. During the same period in the prior year, the company earned $0.15 earnings per share.

Analyst Ratings Changes

A number of brokerages have recently commented on HBI. Wall Street Zen downgraded Hanesbrands from a "buy" rating to a "hold" rating in a research report on Saturday, July 26th. Stifel Nicolaus lowered their price objective on Hanesbrands from $7.00 to $5.00 and set a "hold" rating for the company in a research report on Thursday, April 10th. Barclays set a $6.00 price target on Hanesbrands and gave the company an "equal weight" rating in a research report on Tuesday, May 20th. Wells Fargo & Company boosted their price target on Hanesbrands from $3.00 to $4.00 and gave the company an "underweight" rating in a research report on Wednesday, May 14th. Finally, UBS Group boosted their price target on Hanesbrands from $7.00 to $8.00 and gave the company a "buy" rating in a research report on Wednesday, April 23rd. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and one has assigned a buy rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $5.75.

Institutional Investors Weigh In On Hanesbrands

Institutional investors have recently added to or reduced their stakes in the company. GeoWealth Management LLC grew its position in Hanesbrands by 2,278.8% during the fourth quarter. GeoWealth Management LLC now owns 3,473 shares of the textile maker's stock valued at $28,000 after acquiring an additional 3,327 shares during the period. First Horizon Advisors Inc. lifted its stake in shares of Hanesbrands by 240.7% during the second quarter. First Horizon Advisors Inc. now owns 6,613 shares of the textile maker's stock worth $30,000 after purchasing an additional 4,672 shares in the last quarter. CX Institutional acquired a new position in shares of Hanesbrands during the first quarter worth about $34,000. Strs Ohio acquired a new position in shares of Hanesbrands during the first quarter worth about $38,000. Finally, AlphaQuest LLC acquired a new position in shares of Hanesbrands during the first quarter worth about $44,000. Hedge funds and other institutional investors own 80.31% of the company's stock.

Hanesbrands Stock Performance

The stock has a 50 day simple moving average of $4.59 and a 200 day simple moving average of $5.42. The company has a market cap of $1.74 billion, a price-to-earnings ratio of -5.89 and a beta of 1.40. The company has a quick ratio of 0.67, a current ratio of 1.55 and a debt-to-equity ratio of 53.45.

Hanesbrands Company Profile

Hanesbrands Inc, a consumer goods company, designs, manufactures, sources, and sells a range of range of innerwear apparels for men, women, and children in the Americas, Europe, the Asia pacific, and internationally. The company operates through three segments: Innerwear, Activewear, and International.

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