HanesBrands Inc. (HBI) Rating Increased to Hold at Zacks Investment Research
HanesBrands Inc. (NYSE:HBI) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “After reporting a negative earnings surprise in the second quarter of 2016, the third quarter came as a respite, as Hanesbrands’ managed to post in-line earnings of $0.56. However, sales missed our expectations. The company was able to keep its trend of posting year-over-year growth in both the top and bottom lines during the period backed by the success of the Innovate-to-Elevate strategy. Higher sales in Innerwear and Activewear categories along with contributions from the acquired Knights Apparel business led to sales growth this quarter. We are encouraged by the company’s consistent innovations to maintain market share and a loyal customer base. Strong e-Commerce business and replenishment-driven nature of products as well as strategic buyouts help it to maintain top-line at decent levels. However, limited international exposure and a deep focus on premium brands remain concerns.”
Other equities research analysts also recently issued research reports about the stock. FBR & Co set a $39.00 price target on shares of HanesBrands and gave the stock a “buy” rating in a research note on Sunday, October 30th. Oppenheimer Holdings Inc. restated an “outperform” rating and issued a $35.00 target price on shares of HanesBrands in a research note on Tuesday, August 2nd. Credit Suisse Group AG restated a “buy” rating and issued a $37.00 target price on shares of HanesBrands in a research note on Wednesday, August 3rd. Citigroup Inc. reduced their target price on shares of HanesBrands from $37.00 to $32.00 and set a “buy” rating on the stock in a research note on Thursday, August 4th. Finally, Cowen and Company downgraded shares of HanesBrands from an “outperform” rating to a “market perform” rating and reduced their target price for the company from $33.00 to $27.00 in a research note on Wednesday, October 12th. One research analyst has rated the stock with a sell rating, three have given a hold rating and ten have given a buy rating to the company. The stock presently has an average rating of “Buy” and an average target price of $33.69.
HanesBrands (NYSE:HBI) opened at 24.48 on Tuesday. The firm has a market cap of $9.25 billion, a price-to-earnings ratio of 18.93 and a beta of 1.05. The stock has a 50 day moving average of $24.81 and a 200-day moving average of $26.07. HanesBrands has a 52-week low of $23.25 and a 52-week high of $31.70.
HanesBrands (NYSE:HBI) last posted its quarterly earnings results on Thursday, October 27th. The company reported $0.56 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.56. HanesBrands had a net margin of 8.55% and a return on equity of 61.39%. The firm had revenue of $1.76 billion for the quarter, compared to the consensus estimate of $1.77 billion. During the same quarter in the previous year, the company earned $0.50 earnings per share. The business’s revenue was up 10.7% compared to the same quarter last year. On average, analysts expect that HanesBrands will post $1.91 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 6th. Investors of record on Tuesday, November 15th will be given a $0.11 dividend. The ex-dividend date of this dividend is Thursday, November 10th. This represents a $0.44 annualized dividend and a dividend yield of 1.80%. HanesBrands’s dividend payout ratio is presently 33.85%.
Institutional investors have recently modified their holdings of the stock. Washington Trust Bank raised its position in shares of HanesBrands by 0.8% in the third quarter. Washington Trust Bank now owns 4,033 shares of the company’s stock valued at $102,000 after buying an additional 33 shares in the last quarter. Global X Management Co. LLC increased its stake in HanesBrands by 98.3% in the third quarter. Global X Management Co. LLC now owns 4,030 shares of the company’s stock valued at $102,000 after buying an additional 1,998 shares during the last quarter. First Personal Financial Services bought a new stake in HanesBrands during the second quarter valued at approximately $104,000. Kernodle & Katon Asset Management Group LLC bought a new stake in HanesBrands during the third quarter valued at approximately $114,000. Finally, Mizuho Asset Management Co. Ltd. increased its stake in HanesBrands by 102.0% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 4,937 shares of the company’s stock valued at $124,000 after buying an additional 2,493 shares during the last quarter. Institutional investors and hedge funds own 93.27% of the company’s stock.
Hanesbrands Inc is a manufacturer and marketer of apparels. The Company operates through four segments: Innerwear, Activewear, Direct to Consumer and International. The Company’s portfolio of brands includes Hanes, Champion, Maidenform, DIM, Playtex, Bali, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Flexees, Lilyette and Gear for Sports.
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