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

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

Key Gildan Activewear News

Here are the key news stories impacting Gildan Activewear this week:

• Negative Sentiment: A short-seller report alleging channel stuffing and inflated sales triggered a sharp selloff, as investors worried reported growth may be less reliable than previously believed. Gildan Activewear Shares Fall After Short Seller Charges “Channel Stuffing”
• Negative Sentiment: Multiple law firms launched securities-fraud investigations after the stock’s drop, increasing the risk of litigation, distraction, and potential settlement costs. Securities Fraud Investigation Into Gildan Activewear Inc. (GIL) Announced
• Neutral Sentiment: Scotia lowered its price target to $65 from $72 but kept a “sector outperform” rating, signaling continued long-term confidence even as near-term sentiment deteriorates. Analyst rating update

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. Scotia reduced their target price on Gildan Activewear from $72.00 to $65.00 and set a “sector outperform” rating for the company in a report on Wednesday. Stifel Nicolaus boosted their target price on Gildan Activewear from $75.00 to $80.00 and gave the company a “buy” rating in a report on Monday, February 23rd. Zacks Research raised Gildan Activewear from a “strong sell” rating to a “hold” rating in a report on Friday, May 1st. Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating and set a $77.00 price objective on shares of Gildan Activewear in a research note on Friday, May 1st. Finally, Weiss Ratings downgraded Gildan Activewear from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, May 18th. Thirteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $78.21.

Gildan Activewear Trading Up 5.5%

The company has a 50 day simple moving average of $58.24 and a 200 day simple moving average of $61.50. The company has a current ratio of 2.35, a quick ratio of 1.17 and a debt-to-equity ratio of 1.32. The stock has a market capitalization of $9.83 billion, a PE ratio of 31.24 and a beta of 1.08.

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

Gildan Activewear Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Wednesday, May 20th were given a dividend of $0.249 per share. The ex-dividend date was Wednesday, May 20th. This represents a $1.00 annualized dividend and a yield of 1.9%. Gildan Activewear’s payout ratio is presently 58.82%.

Hedge Funds Weigh In On Gildan Activewear

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Washburn Capital Management Inc. increased its position in Gildan Activewear by 3.8% during the 4th quarter. Washburn Capital Management Inc. now owns 4,257 shares of the textile maker’s stock worth $266,000 after purchasing an additional 157 shares during the period. Integrated Advisors Network LLC increased its stake in Gildan Activewear by 3.0% in the 3rd quarter. Integrated Advisors Network LLC now owns 6,365 shares of the textile maker’s stock valued at $368,000 after purchasing an additional 185 shares in the last quarter. Fifth Third Bancorp increased its stake in Gildan Activewear by 16.5% in the 1st quarter. Fifth Third Bancorp now owns 1,355 shares of the textile maker’s stock valued at $75,000 after purchasing an additional 192 shares in the last quarter. Arkadios Wealth Advisors increased its stake in Gildan Activewear by 2.2% in the 4th quarter. Arkadios Wealth Advisors now owns 8,787 shares of the textile maker’s stock valued at $549,000 after purchasing an additional 193 shares in the last quarter. Finally, Tacita Capital Inc increased its stake in Gildan Activewear by 1.9% in the 4th quarter. Tacita Capital Inc now owns 11,250 shares of the textile maker’s stock valued at $704,000 after purchasing an additional 211 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.