Hanesbrands (HBI) Upgraded to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of Hanesbrands (NYSE:HBI) from a strong sell rating to a hold rating in a report published on Wednesday morning.

According to Zacks, “Hanesbrands, which has been battling escalated costs, has lagged the industry in the last six months. After reporting in-line earnings in the preceding two quarters, the company succumbed to a negative earnings surprise in the fourth quarter of 2017. Moreover, earnings fell year over year, hit by higher cost of sales and SG&A expenses as well as escalated interest expense. Further, management remains cautious about 2018, given a challenging U.S. wholesale landscape. Nonetheless, we remain hopeful about the company’s focus on buyouts as evident from its recent acquisition of Bras N Things that is likely to augment 2018 earnings. Further, the Project Booster cost savings initiative is also well on-track. Also, the company’s return to organic sales growth during the fourth quarter was noteworthy. Moreover, Hanesbrands’ online sales, which surged 22% in the quarter remains a major driver.”

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Other equities analysts have also issued research reports about the company. B. Riley cut their price target on Hanesbrands from $33.00 to $30.00 and set a buy rating on the stock in a research note on Thursday, February 8th. Macquarie began coverage on Hanesbrands in a research note on Monday, April 2nd. They set a neutral rating and a $19.00 price target on the stock. Wells Fargo set a $20.00 price target on Hanesbrands and gave the company a hold rating in a research note on Friday, February 9th. Citigroup cut their price target on Hanesbrands from $23.00 to $22.00 and set a neutral rating on the stock in a research note on Friday, February 9th. Finally, ValuEngine lowered Hanesbrands from a buy rating to a hold rating in a research note on Friday, February 2nd. One investment analyst has rated the stock with a sell rating, fourteen have issued a hold rating and seven have issued a buy rating to the company’s stock. The company has a consensus rating of Hold and a consensus price target of $24.87.

Shares of Hanesbrands stock opened at $18.13 on Wednesday. The firm has a market cap of $6,686.11, a PE ratio of 9.39, a PEG ratio of 1.17 and a beta of 0.73. The company has a debt-to-equity ratio of 5.40, a quick ratio of 0.85 and a current ratio of 1.90. Hanesbrands has a 12 month low of $17.94 and a 12 month high of $25.73.

Hanesbrands (NYSE:HBI) last announced its quarterly earnings results on Thursday, February 8th. The textile maker reported $0.52 EPS for the quarter, meeting the consensus estimate of $0.52. The firm had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.63 billion. Hanesbrands had a return on equity of 72.30% and a net margin of 0.96%. The business’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same quarter last year, the firm posted $0.53 earnings per share. sell-side analysts predict that Hanesbrands will post 1.76 earnings per share for the current year.

In other Hanesbrands news, insider W Howard Upchurch, Jr. sold 51,743 shares of the firm’s stock in a transaction dated Thursday, February 15th. The stock was sold at an average price of $20.70, for a total value of $1,071,080.10. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 1.06% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently modified their holdings of the business. Guardian Capital LP acquired a new stake in Hanesbrands in the third quarter worth about $9,494,000. Allianz Asset Management GmbH boosted its holdings in Hanesbrands by 1,429.0% in the third quarter. Allianz Asset Management GmbH now owns 358,080 shares of the textile maker’s stock worth $8,823,000 after acquiring an additional 334,661 shares in the last quarter. Parametric Portfolio Associates LLC boosted its holdings in Hanesbrands by 15.8% in the third quarter. Parametric Portfolio Associates LLC now owns 980,400 shares of the textile maker’s stock worth $24,157,000 after acquiring an additional 133,434 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Hanesbrands by 0.4% in the third quarter. Dimensional Fund Advisors LP now owns 1,383,535 shares of the textile maker’s stock worth $34,089,000 after acquiring an additional 6,108 shares in the last quarter. Finally, Lapides Asset Management LLC boosted its holdings in Hanesbrands by 19.5% in the fourth quarter. Lapides Asset Management LLC now owns 188,900 shares of the textile maker’s stock worth $3,950,000 after acquiring an additional 30,800 shares in the last quarter. 99.99% of the stock is owned by institutional investors and hedge funds.

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About Hanesbrands

Hanesbrands Inc is a marketer of basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia/Pacific under apparel brands, such as Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Flexees, Gear for Sports and Berlei.

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