Gildan Activewear stock hits all-time high at 57.76 USD

Gildan Activewear Inc. stock reached a significant milestone, achieving an all-time high of 57.76 USD, with a market capitalization of $8.6 billion. This peak reflects the company’s robust performance over the past year, during which its stock has appreciated by 23.24%. The company maintains strong financial health with a current ratio of 3.87x and has consistently returned value to shareholders through regular dividend payments and share buybacks. The steady increase in Gildan’s stock price highlights investor confidence and the company’s strong market position, driven by its strategic initiatives and solid financial results, including a healthy gross profit margin of 31.17%. InvestingPro analysis suggests the stock is currently fairly valued, with 12 additional exclusive ProTips available for subscribers looking to dive deeper into Gildan’s growth prospects. As Gildan continues to expand its footprint in the apparel industry, this new high marks a pivotal moment, underscoring its growth trajectory and potential for future gains.

In other recent news, Gildan Activewear has reported notable developments that are catching the attention of investors. The company announced a strong second-quarter performance, with earnings per share reaching $0.97, up from $0.74 in the same period last year, and revenue hitting $919 million, surpassing estimates by $13 million. This financial success has led CFRA to raise its price target for Gildan to C$76.00 while maintaining a Hold rating. In a significant move, Gildan has entered into a definitive agreement to acquire HanesBrands in a deal valued at approximately $4.4 billion. HanesBrands shareholders will receive 0.102 common shares of Gildan and $0.80 in cash per share, representing a 24% premium to HanesBrands’ previous closing price.

Following this acquisition announcement, RBC Capital and BMO Capital have both raised their price targets for Gildan to $68 and $70, respectively, while maintaining an Outperform rating. RBC Capital views the acquisition as a "complementary and logical fit," while BMO Capital sees it as creating a "global basics apparel leader." Additionally, RBC Capital recently initiated coverage on Gildan with an Outperform rating and a price target of $61, highlighting the company’s strong execution across its business operations. These recent developments underscore Gildan’s strategic moves and financial performance, which are being positively received by analysts.

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