HanesBrands Inc. (HBI) Rating Lowered to Sell at Zacks Investment Research
HanesBrands Inc. (NYSE:HBI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday.
According to Zacks, “Estimates have been revised downward since the company reported lower than expected sales in the third quarter of 2016. Further, limited international exposure and a deep focus on premium brands remain concerns. However, it posted in line earnings of $0.56 after reporting a negative earnings surprise in the second quarter of 2016. 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.”
A number of other analysts have also issued reports on the company. Cowen and Company lowered HanesBrands from an “outperform” rating to a “market perform” rating and lowered their price target for the stock from $33.00 to $27.00 in a research note on Wednesday, October 12th. Oppenheimer Holdings Inc. reaffirmed an “outperform” rating and issued a $35.00 price target on shares of HanesBrands in a research note on Tuesday, August 2nd. Credit Suisse Group AG reaffirmed a “buy” rating and issued a $37.00 price target on shares of HanesBrands in a research note on Wednesday, August 3rd. Citigroup Inc. lowered their price target on HanesBrands from $37.00 to $32.00 and set a “buy” rating on the stock in a research note on Thursday, August 4th. Finally, FBR & Co set a $39.00 price target on HanesBrands and gave the stock a “buy” rating in a research note on Sunday, October 30th. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and ten have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of $33.69.
Shares of HanesBrands (NYSE:HBI) opened at 23.47 on Monday. The company’s 50-day moving average price is $24.65 and its 200 day moving average price is $25.97. HanesBrands has a 12-month low of $23.25 and a 12-month high of $31.59. The stock has a market cap of $8.87 billion, a price-to-earnings ratio of 18.15 and a beta of 1.05.
HanesBrands (NYSE:HBI) last issued its quarterly earnings results on Thursday, October 27th. The company reported $0.56 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $0.56. The firm had revenue of $1.76 billion for the quarter, compared to analyst estimates of $1.77 billion. HanesBrands had a return on equity of 61.39% and a net margin of 8.55%. The business’s revenue was up 10.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.50 earnings per share. On average, equities analysts predict that HanesBrands will post $1.91 earnings per share for the current year.
The business 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 dividend of $0.11 per share. The ex-dividend date of this dividend is Thursday, November 10th. This represents a $0.44 dividend on an annualized basis and a yield of 1.87%. HanesBrands’s payout ratio is 33.85%.
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In other HanesBrands news, Director Jessica Tuchman Mathews sold 5,433 shares of HanesBrands stock in a transaction on Monday, November 21st. The stock was sold at an average price of $24.52, for a total value of $133,217.16. Following the sale, the director now owns 127,839 shares in the company, valued at $3,134,612.28. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 1.00% of the company’s stock.
A number of large investors have recently bought and sold shares of the stock. Washington Trust Bank increased its stake in HanesBrands by 0.8% in the third quarter. Washington Trust Bank now owns 4,033 shares of the company’s stock worth $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 worth $102,000 after buying an additional 1,998 shares in the last quarter. First Personal Financial Services acquired a new stake in HanesBrands during the second quarter worth approximately $104,000. Kernodle & Katon Asset Management Group LLC acquired a new stake in HanesBrands during the third quarter worth 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 worth $124,000 after buying an additional 2,493 shares in the last quarter. Institutional investors own 94.28% of the company’s stock.
HanesBrands Company Profile
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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