Investors Buy High Volume of Hanesbrands Put Options (NYSE:HBI)

Key Points

• Hanesbrands Inc. (NYSE:HBI) experienced a significant increase in options trading, with a 953% rise in the purchase of put options on a recent Friday.
• Analysts have downgraded Hanesbrands from a "buy" to a "hold" rating, while target prices range from $4.00 to $8.00, reflecting varied outlooks on the company’s future performance.
• Recently reported earnings showed Hanesbrands' EPS exceeded expectations at $0.24, although revenue declined by 0.4% compared to the previous year.

Hanesbrands Inc. (NYSE:HBI - Get Free Report) was the target of unusually large options trading activity on Friday. Investors purchased 12,511 put options on the stock. Thisisanincreaseofapproximately953% compared to the average daily volume of 1,188 put options.

Hanesbrands Stock Up 4.1%

HBI stock traded up $0.19 during trading on Friday, hitting $4.84. 8,261,309 shares of the company's stock traded hands, compared to its average volume of 5,472,127. The firm has a market capitalization of $1.71 billion, a P/E ratio of 20.17 and a beta of 1.40. The company has a quick ratio of 0.74, a current ratio of 1.52 and a debt-to-equity ratio of 13.62. Hanesbrands has a 1 year low of $3.96 and a 1 year high of $9.10. The business has a fifty day simple moving average of $4.58 and a two-hundred day simple moving average of $5.33.

Hanesbrands (NYSE:HBI - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The textile maker reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.06. The business had revenue of $991.33 million for the quarter, compared to analyst estimates of $971.93 million. Hanesbrands had a net margin of 2.49% and a return on equity of 226.31%. The business's revenue for the quarter was down .4% on a year-over-year basis. During the same period in the previous year, the company earned $0.15 earnings per share. Sell-side analysts anticipate that Hanesbrands will post 0.53 EPS for the current year.

Institutional Investors Weigh In On Hanesbrands

A number of large investors have recently bought and sold shares of HBI. 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 buying an additional 3,327 shares during the period. Transce3nd LLC acquired a new stake in Hanesbrands in the 4th quarter valued at about $45,000. CX Institutional purchased a new position in Hanesbrands during the first quarter worth approximately $34,000. Strs Ohio acquired a new position in shares of Hanesbrands during the 1st quarter valued at about $38,000. Finally, First Horizon Advisors Inc. grew its stake in shares of Hanesbrands by 240.7% in the 2nd quarter. First Horizon Advisors Inc. now owns 6,613 shares of the textile maker's stock valued at $30,000 after buying an additional 4,672 shares during the period. Hedge funds and other institutional investors own 80.31% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on HBI shares. Wall Street Zen raised Hanesbrands from a "hold" rating to a "strong-buy" rating in a research note on Saturday. UBS Group boosted their price objective on Hanesbrands from $8.00 to $9.00 and gave the company a "buy" rating in a report on Friday. Wells Fargo & Company increased their target price on Hanesbrands from $3.00 to $4.00 and gave the stock an "underweight" rating in a research note on Wednesday, May 14th. Finally, Barclays set a $6.00 target price on Hanesbrands and gave the stock an "equal weight" rating in a research report on Tuesday, May 20th. One analyst has rated the stock with a sell rating, two have given a hold rating, one has given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $6.00.

About Hanesbrands

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.