Gildan Activewear Receives “Moderate Buy” Rating from Analysts

Gildan Activewear, Inc. (NYSE:GIL) has been assigned a consensus rating of “Moderate Buy” by analysts covering the company, according to a report from Marketbeat Ratings. Out of sixteen analysts, one has rated the stock as a sell, two as hold, and thirteen as buy, indicating a generally positive outlook for the textile manufacturer.

The average twelve-month target price for Gildan Activewear among these brokerages stands at $80.08. Several recent research reports have influenced this assessment. For instance, the Royal Bank of Canada adjusted its price target from $79.00 to $78.00 while maintaining an “outperform” rating on March 2, 2024. Meanwhile, TD Securities reaffirmed a “buy” rating with a target price of $77.00 in a report dated January 27, 2024.

Additionally, BMO Capital Markets raised its target from $70.00 to $78.00 on January 26, 2024, labeling the stock as “outperform.” Stifel Nicolaus also increased its price target from $75.00 to $80.00 while issuing a “buy” rating on February 23, 2024. Notably, UBS Group set a significantly higher price target of $110.00, up from $80.00, in a report released on December 16, 2023.

Recent Earnings Report

Gildan Activewear released its latest earnings results on February 26, 2024. The company reported earnings per share (EPS) of $0.96 for the quarter, falling short of analysts’ expectations of $1.31 by $0.35. Revenue for the quarter totaled $1.08 billion, surpassing estimates of $1.01 billion. The company’s net margin stood at 11.02%, and it achieved a return on equity of 27.32%. Compared to the same quarter last year, Gildan’s revenue increased by 31.1%.

Looking ahead, Gildan Activewear has guided for fiscal year 2026 with an EPS forecast between $4.20 and $4.40. Analysts anticipate an average EPS of $3.48 for the current fiscal year.

Dividend Increase and Institutional Investment

In a positive move for shareholders, Gildan Activewear announced an increase in its quarterly dividend, set to be paid on April 13, 2024. Shareholders on record as of March 19, 2024, will receive a dividend of $0.249, up from the previous quarterly dividend of $0.23. This raises the annualized dividend to $1.00, reflecting a yield of 1.7%. The company’s dividend payout ratio currently stands at 34.35%.

Institutional investors have shown significant interest in Gildan Activewear. In the fourth quarter of 2023, Islay Capital Management LLC acquired a new position valued at approximately $25,000, while Webster Bank N. A. also invested $25,000. Larson Financial Group LLC drastically increased its stake by 3,516.7%, owning 434 shares worth $27,000 after acquiring additional shares during this period. Caitong International Asset Management Co. Ltd. and Nisa Investment Advisors LLC also made notable investments, valued at approximately $28,000 and $32,000, respectively. Currently, institutional investors hold 82.83% of Gildan Activewear’s stock.

Founded in 1984 by Glenn J. Chamandy, Gildan Activewear is a vertically integrated manufacturer and wholesaler of branded apparel, including activewear, socks, hosiery, and underwear. Based in Montreal, Quebec, the company produces a diverse range of products, including T-shirts, fleece garments, and performance wear, under various brands such as Gildan, Anvil, and Gold Toe. With in-house operations for knitting, dyeing, cut-and-sew, and finishing, Gildan serves screen printers, promotional product distributors, and major retailers globally.