Stocks of Hanesbrands Inc. (HBI) are poised to climb above their peers

Hanesbrands Inc. (NYSE: HBI) stock fell -2.91% on Tuesday to $8.02 against a previous-day closing price of $8.26. With 7.02 million shares changed hands, the volume of the stock remained lighter than its average volume of 10.06 million shares. During the session, the Apparel Manufacturing company that operates in wider Consumer Cyclical sector, reached to the highest price of $8.40 whereas the lowest price it dropped to was $8.02. The 52-week range on HBI shows that it touched its highest point at $16.75 and its lowest point at $5.65 during that stretch. It currently has a 1-year price target of $6.78. With its current market cap of 2.78 billion, HBI has annualized dividend of $0.60 while the current yield stands at 7.48%. Beta for the stock currently stands at 1.49.

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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 HBI was down-trending over the past week, with a drop of -2.20%, but this was up by 37.33% over a month. Three-month performance surged to 8.97% while six-month performance fell -28.14%. The stock lost -49.01% in the past year, while it has gained 26.10% so far this year. A look at the trailing 12-month EPS for HBI yields 1.00 with Next year EPS estimates of 0.96. For the next quarter, that number is 0.07. This implies an EPS growth rate of 832.70% for this year and -1.64% for next year. EPS is expected to decline by -13.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 1.00%.

Float and Shares Shorts:

At present, 349.88 million HBI shares are outstanding with a float of 345.65 million shares on hand for trading. On Oct 13, 2022, short shares totaled 41.42 million, which was 11.87% higher than short shares on Sep 14, 2022. In addition to Mr. Stephen B. Bratspies as the firm’s CEO & Director, Mr. Michael P. Dastugue serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 92.33% of HBI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.32% of HBI, in contrast to 41.49% held by mutual funds. Shares owned by individuals account for 2.98%. As the largest shareholder in HBI with 10.04% of the stake, BlackRock Fund Advisors holds 35,045,912 shares worth 35,045,912. A second-largest stockholder of HBI, The Vanguard Group, Inc., holds 35,011,639 shares, controlling over 10.03% of the firm’s shares. Cooke & Bieler LP is the third largest shareholder in HBI, holding 20,686,961 shares or 5.93% stake. With a 3.09% stake in HBI, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 10,765,757 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.03% of HBI stock, is the second-largest Mutual Fund holder. It holds 10,569,184 shares valued at 67.22 million. Undiscovered Managers Behavioral holds 2.92% of the stake in HBI, owning 10,181,428 shares worth 64.75 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HBI since 11 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 0 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 HBI analysts setting a high price target of $8.00 and a low target of $3.00, the average target price over the next 12 months is $6.78. Based on these targets, HBI could drop -0.25% to reach the target high and fall by -62.59% to reach the target low. Reaching the average price target will result in a decline of -15.46% 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. HBI will report FY 2022 earnings on 02/08/2024. Analysts have provided yearly estimates in a range of $1.00 being high and $0.95 being low. For HBI, this leads to a yearly average estimate of $0.98. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Hanesbrands Inc. surprised analysts by $0.02 when it reported $0.29 EPS against a consensus estimate of $0.27. The surprise factor in the prior quarter was -$0.04. Based on analyst estimates, the high estimate for the next quarter is $0.09 and the low estimate is $0.05. The average estimate for the next quarter is thus $0.07.

Summary of Insider Activity:

Insiders traded HBI stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 21 over the past year. The total number of shares bought during that period was 191,704 while 147,611 shares were sold.

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