Gildan Activewear (TSE:GIL) Reaches New 52-Week Low - What's Next?

Key Points

• Gildan Activewear shares fell to a new 52-week low, trading as low as C$55.01 and significantly below their 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a consensus “Buy” rating with an average price target of C$95.33; National Bank Financial recently lowered its target to C$98.00 while retaining an “outperform” rating.
• The company reported C$1.82 in quarterly EPS on C$1.13 billion in revenue and pays a quarterly dividend equivalent to a 1.8% yield, although its dividend payout ratio is high at 186.27%.

Gildan Activewear Inc. (TSE:GIL - Get Free Report) NYSE: GIL hit a new 52-week low during trading on Wednesday. The company traded as low as C$55.01 and last traded at C$55.62, with a volume of 134,425 shares changing hands. The stock had previously closed at C$56.31.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. National Bank Financial dropped their target price on shares of Gildan Activewear from C$107.00 to C$98.00 and set an "outperform" rating for the company in a research report on Monday, October 19th. Desjardins set a C$108.00 price objective on shares of Gildan Activewear and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Three research analysts have rated the stock with a Buy rating. Based on data from MarketBeat.com, Gildan Activewear currently has a consensus rating of "Buy" and a consensus price target of C$95.33.

Gildan Activewear Price Performance

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 firm has a market cap of C$10.30 billion, a P/E ratio of 109.06, a price-to-earnings-growth ratio of 4.55 and a beta of 1.63. The business has a 50-day moving average of C$64.93 and a two-hundred day moving average of C$77.80.

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

Gildan Activewear Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 14th. Stockholders of record on Monday, September 14th were issued a dividend of $0.2490 per share. The ex-dividend date was Thursday, August 20th. This represents a $1.00 annualized dividend and a dividend yield of 1.8%. Gildan Activewear's dividend payout ratio is currently 186.27%.

Insider Buying and Selling

In other news, insider Maria Andrea Pirie Woodbridge sold 8,000 shares of the stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of C$75.93, for a total value of C$607,440.00. Following the completion of the sale, the insider directly owned 2,243 shares of the company's stock, valued at C$170,310.99. This represents a 78.10% decrease in their ownership of the stock. Company insiders own 2.26% of the company's stock.

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 and directly to consumers. 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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