Gildan Activewear (TSE:GIL) Shares Down 22.9% on Analyst Downgrade

Gildan Activewear Inc. (TSE:GIL) (NYSE:GIL)’s share price fell 22.9% during mid-day trading on Thursday after UBS Group downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as C$43.69 and last traded at C$46.60. Approximately 1,680,845 shares were traded during mid-day trading, an increase of 157% from the average session volume of 652,972 shares. The stock had previously closed at C$60.44.

A number of other equities analysts have also commented on the stock. Scotiabank lowered shares of Gildan Activewear from a “strong-buy” rating to a “hold” rating in a research report on Friday. Desjardins decreased their target price on shares of Gildan Activewear from C$108.00 to C$90.00 and set a “buy” rating on the stock in a research report on Tuesday. National Bank Financial lowered their target price on shares of Gildan Activewear from C$107.00 to C$98.00 and set an “outperform” rating on the stock in a report on Monday, October 19th. Scotia dropped their price target on shares of Gildan Activewear from C$67.00 to C$53.00 and set a “sector outperform” rating for the company in a research report on Tuesday. Finally, Canaccord Genuity Group cut Gildan Activewear from a “strong-buy” rating to a “hold” rating in a research note on Thursday. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of C$80.25.

Insiders Place Their Bets

In other Gildan Activewear news, insider Maria Andrea Pirie Woodbridge sold 8,000 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of C$75.93, for a total transaction of C$607,440.00. Following the sale, the insider directly owned 2,243 shares in the company, valued at C$170,310.99. This represents a 78.10% decrease in their ownership of the stock. 2.26% of the stock is owned by corporate insiders.

Trending Headlines about Gildan Activewear

Here are the key news stories impacting Gildan Activewear this week:

• Positive Sentiment: Gildan authorized a share buyback plan, which could provide some support for the stock, although the reports do not specify its size. Gildan Activewear Inc. authorizes a Buyback Plan
• Negative Sentiment: Management cut its 2026 outlook amid a rapid change in market conditions and withdrew its 2026–2028 objectives. It now expects 2026 revenue of $5.4 billion–$5.5 billion and free cash flow of $700 million–$750 million. The lower outlook and reduced visibility are significant headwinds. Gildan 2026 outlook
• Negative Sentiment: Third-quarter pro forma sales fell 8.7% and missed expectations. Adjusted earnings rose 54% year over year but also came in below forecasts, suggesting that stronger earnings growth did not offset weakness in demand. Third-quarter results
• Negative Sentiment: UBS said business headwinds could persist through 2027, while TD Cowen lowered its price target to $49. These updates reinforce concern that recovery may take time. UBS outlook TD Cowen price target
• Negative Sentiment: Investor law firms publicized a securities class action and a December 14 lead-plaintiff deadline, adding litigation-related uncertainty. These notices are not findings of wrongdoing. Class action notice

Gildan Activewear Price Performance

The company has a market cap of C$9.07 billion, a price-to-earnings ratio of 96.08, a PEG ratio of 4.55 and a beta of 1.77. The company has a debt-to-equity ratio of 145.29, a quick ratio of 0.87 and a current ratio of 1.93. The business has a fifty day moving average price of C$61.54 and a 200 day moving average price of C$76.50.

Gildan Activewear (TSE:GIL) (NYSE:GIL) last posted its earnings results on Thursday, November 5th. The company reported C$2.18 earnings per share for the quarter. The firm had revenue of C$2.08 billion for the quarter. Gildan Activewear had a net margin of 1.33% and a return on equity of 2.12%. As a group, research analysts anticipate that Gildan Activewear Inc. will post 4.55 earnings per share for the current year.

Gildan Activewear Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 14th. Stockholders of record on Monday, September 14th were paid a $0.2490 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Thursday, August 20th. Gildan Activewear’s dividend payout ratio is currently 186.27%.

Gildan Activewear Company Profile

Gildan is a leading manufacturer of everyday basic apparel. The Company’s product offering includes activewear, underwear, socks, and intimates sold to a broad range of customers, including wholesale distributors, screenprinters, embellishers, retailers or e-commerce platforms, as well as global lifestyle brand companies and directly to consumers. Gildan markets its products in North America, Europe, Asia Pacific, and Latin America, under a diversified portfolio of Company-owned brands including Gildan, Hanes, Comfort Colors, American Apparel, ALLPRO, GOLDTOE, Peds, Bali, Playtex, Maidenform, Bonds, as well as Champion which is under an exclusive licensing agreement for the printwear channel in the U.S.