Gildan Activewear Receives “Moderate Buy” Rating from Analysts

Gildan Activewear, Inc. (NYSE:GIL) has garnered a consensus recommendation of “Moderate Buy” from analysts covering the company, as reported by Marketbeat Ratings. Out of the sixteen analysts assessing the stock, one has issued a sell recommendation, two have suggested holding, while thirteen have rated it as a buy. The average 12-month target price stands at approximately $80.08.

Several recent research reports have analyzed Gildan’s performance. The Royal Bank of Canada adjusted its price target for Gildan Activewear from $79.00 to $78.00 on March 2, 2024, maintaining an “outperform” rating. Similarly, TD Securities reaffirmed a “buy” rating with a target price of $77.00 on January 27, 2024. BMO Capital Markets raised its target from $70.00 to $78.00 with an “outperform” rating noted on January 26, 2024. On February 23, 2024, Stifel Nicolaus increased its price target to $80.00, also issuing a “buy” rating. Lastly, UBS Group reaffirmed a “buy” rating and raised its target price significantly from $80.00 to $110.00 on December 16, 2023.

The company recently posted its earnings results for the quarter ending February 26, 2024. Gildan reported earnings per share (EPS) of $0.96, falling short of analysts’ expectations of $1.31 by $0.35. The company’s revenue reached $1.08 billion, surpassing analyst estimates of $1.01 billion. Gildan’s net margin was 11.02%, with a return on equity of 27.32%. Notably, revenue saw a substantial increase of 31.1% compared to the same quarter last year, when the firm reported an EPS of $0.83. Gildan has projected its FY 2026 guidance at $4.20 to $4.40 EPS, with analysts forecasting an average EPS of $3.48 for the current fiscal year.

Dividend Announcement and Institutional Investor Activity

On April 13, 2024, Gildan Activewear plans to distribute a quarterly dividend of $0.249 per share, an increase from the previous dividend of $0.23. The record date for this dividend is set for March 19, 2024, with the ex-dividend date also on March 19, 2024. This represents an annualized dividend of $1.00 and a yield of 1.7%, with a payout ratio of 34.35%.

Institutional investors have been active in adjusting their stakes in Gildan Activewear. For instance, Islay Capital Management LLC acquired a new position valued at approximately $25,000 during the fourth quarter. Similarly, Webster Bank N. A. made a new investment worth $25,000. Larson Financial Group LLC significantly boosted its holdings by 3,516.7%, bringing its total to 434 shares valued at $27,000. Additionally, Caitong International Asset Management Co. Ltd grew its stake by 14,833.3%, now holding 448 shares valued at $28,000. In total, institutional investors own 82.83% of Gildan Activewear’s stock.

Company Overview

Founded in 1984 by Glenn J. Chamandy, Gildan Activewear Inc. is a vertically integrated manufacturer and wholesaler of branded basic apparel. Headquartered in Montreal, Quebec, the company produces a diverse array of products, including T-shirts, fleece garments, sport shirts, performance wear, and shapewear. Gildan operates under several brands, including Gildan, Anvil, Comfort Colors, Gold Toe, Peds, and Silks. Its in-house operations encompass knitting, dyeing, cut-and-sew, and finishing, allowing Gildan to supply blank apparel to screen printers, promotional product distributors, and major retailers globally.