There is no way Gildan Activewear Inc. (GIL) can keep these numbers up

Gildan Activewear Inc. (NYSE: GIL) stock fell -5.57% on Friday to $26.98 against a previous-day closing price of $28.57. With 0.71 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.83 million shares. During the session, the Apparel Manufacturing company that operates in wider Consumer Cyclical sector, reached to the highest price of $28.09 whereas the lowest price it dropped to was $26.97. The 52-week range on GIL shows that it touched its highest point at $43.63 and its lowest point at $25.67 during that stretch. It currently has a 1-year price target of $42.28. With its current market cap of 5.09 billion, GIL has annualized dividend of $0.68 while the current yield stands at 2.51%. Beta for the stock currently stands at 1.40.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GIL was down-trending over the past week, with a drop of -5.23%, but this was down by -5.83% over a month. Three-month performance dropped to -24.40% while six-month performance fell -30.80%. The stock lost -21.75% in the past year, while it has lost -36.35% so far this year. A look at the trailing 12-month EPS for GIL yields 3.35 with Next year EPS estimates of 3.29. For the next quarter, that number is 0.78. This implies an EPS growth rate of 370.60% for this year and 7.27% for next year. EPS is expected to grow by 1.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 15.90%.

Float and Shares Shorts:

At present, 189.34 million GIL shares are outstanding with a float of 182.95 million shares on hand for trading. On Apr 28, 2022, short shares totaled 1.76 million, which was 0.93% higher than short shares on Mar 30, 2022. In addition to Mr. Glenn J. Chamandy as the firm’s Founder, Pres, CEO & Non-Independent Director, Mr. Rhodri J. Harries serves as its Exec. VP and Chief Financial & Admin. Officer.

Institutional Ownership:

Through their ownership of 85.85% of GIL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 49.83% of GIL, in contrast to 31.21% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in GIL with 7.69% of the stake, Jarislowsky, Fraser Ltd. holds 14,360,551 shares worth 14,360,551. A second-largest stockholder of GIL, Fidelity Management & Research Co, holds 9,893,481 shares, controlling over 5.30% of the firm’s shares. Cooke & Bieler LP is the third largest shareholder in GIL, holding 9,740,100 shares or 5.22% stake. With a 4.89% stake in GIL, the Caisse de Dépôt & Placement du Qu is the largest stakeholder. A total of 9,134,385 shares are owned by the mutual fund manager. The Vanguard Windsor Funds – Vanguard, which owns about 2.93% of GIL stock, is the second-largest Mutual Fund holder. It holds 5,470,264 shares valued at 157.43 million. Janus Henderson Enterprise Fund holds 2.86% of the stake in GIL, owning 5,342,285 shares worth 153.75 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GIL since 12 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GIL analysts setting a high price target of $52.00 and a low target of $29.00, the average target price over the next 12 months is $42.08. Based on these targets, GIL could surge 92.74% to reach the target high and rise by 7.49% to reach the target low. Reaching the average price target will result in a growth of 55.97% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. GIL will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $3.07 being high and $2.95 being low. For GIL, this leads to a yearly average estimate of $3.03. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Gildan Activewear Inc. surprised analysts by $0.26 when it reported $0.76 EPS against a consensus estimate of $0.50. The surprise factor in the prior quarter was $0.16. Based on analyst estimates, the high estimate for the next quarter is $0.87 and the low estimate is $0.69. The average estimate for the next quarter is thus $0.76.

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