Gildan Activewear (TSE:GIL) Reaches New 12-Month Low - Time to Sell?

Key Points

• Gildan Activewear fell to a new 52-week low, trading as low as C$56.46 and last changing hands at C$57.37, well below its 50-day and 200-day moving averages.
• Analysts remain broadly positive, with three Buy ratings and one Hold rating producing a “Moderate Buy” consensus and an average price target of C$89.50.
• The company reported C$1.82 in quarterly EPS on C$1.13 billion in revenue and pays a C$1.00 annualized dividend yielding 1.7%; however, its high 186.27% payout ratio and 113.27 P/E ratio highlight potential valuation and dividend-sustainability concerns.

Gildan Activewear Inc. (TSE:GIL - Get Free Report) NYSE: GIL reached a new 52-week low during mid-day trading on Monday. The stock traded as low as C$56.46 and last traded at C$57.37, with a volume of 2,280,781 shares traded. The stock had previously closed at C$57.85.

Analysts Set New Price Targets

A number of brokerages recently weighed in on GIL. Desjardins set a C$108.00 price objective on Gildan Activewear and gave the stock a "buy" rating in a research report on Tuesday, July 28th. National Bank Financial upped their price target on shares of Gildan Activewear from C$105.00 to C$107.00 and gave the company an "outperform" rating in a research report on Friday, July 31st. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of C$89.50.

Gildan Activewear Stock Down 0.1%

The stock has a market cap of C$10.70 billion, a price-to-earnings ratio of 113.27, a P/E/G ratio of 4.55 and a beta of 1.63. The company has a current ratio of 1.93, a quick ratio of 0.87 and a debt-to-equity ratio of 145.29. The stock's 50-day moving average price is C$67.98 and its 200-day moving average price is C$74.36.

Gildan Activewear (TSE:GIL - Get Free Report) NYSE: GIL last released its quarterly earnings data on Thursday, July 30th. The company reported C$1.82 earnings per share (EPS) for the quarter. The firm had revenue of C$1.13 billion for the quarter. Gildan Activewear had a net margin of 1.33% and a return on equity of 2.12%. On average, sell-side analysts expect that Gildan Activewear Inc. will post 4.55 earnings per share for the current year.

Gildan Activewear Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, September 14th. Investors of record on Monday, September 14th were paid a $0.2490 dividend. The ex-dividend date of this dividend was Thursday, August 20th. This represents a $1.00 annualized dividend and a dividend yield of 1.7%. Gildan Activewear's dividend payout ratio (DPR) is presently 186.27%.

Insider Transactions at Gildan Activewear

In related news, insider Maria Andrea Pirie Woodbridge sold 8,000 shares of the business's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of C$75.93, for a total transaction of C$607,440.00. Following the transaction, the insider owned 2,243 shares in the company, valued at C$170,310.99. The trade was a 78.10% decrease in their position. 2.26% of the stock is currently owned by corporate 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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