Gildan Activewear (NYSE:GIL) Trading Down 12.1% – Time to Sell?

Gildan Activewear, Inc. (NYSE:GIL) (TSE:GIL) dropped 12.1% during trading on Tuesday . The stock traded as low as $56.91 and last traded at $54.4840. Approximately 970,225 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 1,231,022 shares. The stock had previously closed at $61.97.

Analyst Upgrades and Downgrades

GIL has been the subject of several recent research reports. Stifel Nicolaus raised their price objective on shares of Gildan Activewear from $75.00 to $80.00 and gave the company a “buy” rating in a research note on Monday, February 23rd. UBS Group reissued a “buy” rating on shares of Gildan Activewear in a research note on Wednesday, June 3rd. TD Securities reissued a “buy” rating on shares of Gildan Activewear in a research note on Tuesday. Royal Bank Of Canada lowered their price objective on shares of Gildan Activewear from $79.00 to $78.00 and set an “outperform” rating for the company in a research note on Monday, March 2nd. Finally, Scotiabank decreased their price target on shares of Gildan Activewear from $74.00 to $72.00 and set a “sector outperform” rating for the company in a research note on Monday, May 4th. Twelve analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Gildan Activewear presently has a consensus rating of “Moderate Buy” and an average target price of $79.77.

Gildan Activewear Stock Down 22.4%

The business’s 50 day moving average is $58.36 and its 200-day moving average is $61.58. The company has a debt-to-equity ratio of 1.32, a current ratio of 2.35 and a quick ratio of 1.17. The company has a market cap of $8.91 billion, a PE ratio of 27.75 and a beta of 1.08.

Gildan Activewear (NYSE:GIL) (TSE:GIL) last issued its quarterly earnings results on Thursday, April 30th. The textile maker reported $0.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.36 by $0.07. Gildan Activewear had a net margin of 6.10% and a return on equity of 21.38%. The company had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.14 billion. During the same quarter in the previous year, the firm earned $0.59 earnings per share. The firm’s quarterly revenue was up 63.8% on a year-over-year basis. Gildan Activewear has set its FY 2026 guidance at 4.200-4.400 EPS. As a group, analysts predict that Gildan Activewear, Inc. will post 4.25 EPS for the current year.

Gildan Activewear Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Wednesday, May 20th were paid a $0.249 dividend. The ex-dividend date was Wednesday, May 20th. This represents a $1.00 dividend on an annualized basis and a yield of 2.1%. Gildan Activewear’s payout ratio is currently 58.82%.

Institutional Trading of Gildan Activewear

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in GIL. Caisse de depot et placement du Quebec raised its holdings in Gildan Activewear by 1,695.7% during the fourth quarter. Caisse de depot et placement du Quebec now owns 6,240,014 shares of the textile maker’s stock worth $390,539,000 after purchasing an additional 5,892,514 shares in the last quarter. Norges Bank acquired a new stake in Gildan Activewear during the fourth quarter worth approximately $151,018,000. Mackenzie Financial Corp raised its holdings in Gildan Activewear by 41.2% during the fourth quarter. Mackenzie Financial Corp now owns 6,860,108 shares of the textile maker’s stock worth $429,382,000 after purchasing an additional 2,001,279 shares in the last quarter. Brandes Investment Partners LP acquired a new stake in Gildan Activewear during the fourth quarter worth approximately $99,870,000. Finally, Vanguard Group Inc. raised its holdings in Gildan Activewear by 26.0% during the fourth quarter. Vanguard Group Inc. now owns 7,566,962 shares of the textile maker’s stock worth $472,964,000 after purchasing an additional 1,561,729 shares in the last quarter. Institutional investors and hedge funds own 82.83% of the company’s stock.

Gildan Activewear Company Profile

Gildan Activewear Inc (NYSE:GIL) is a vertically integrated manufacturer and wholesaler of branded basic apparel, including activewear, socks, hosiery and underwear. Headquartered in Montreal, Quebec, the company produces a wide range of products such as T-shirts, fleece garments, sport shirts, performance wear, and shapewear under its Gildan, Anvil, Comfort Colors, Gold Toe, Peds and Silks brands. Leveraging its in-house knitting, dyeing, cut-and-sew and finishing operations, Gildan supplies blank apparel to screen printers, promotional product distributors and major retailers around the world.

Since its founding in 1984 by Glenn J.