Hanesbrands Inc. (HBI) Sees Large Decline in Short Interest

Hanesbrands Inc. (NYSE:HBI) was the target of a large drop in short interest during the month of February. As of February 15th, there was short interest totalling 35,423,025 shares, a drop of 9.0% from the January 31st total of 38,921,025 shares. Currently, 10.0% of the company’s shares are sold short. Based on an average daily volume of 8,716,523 shares, the short-interest ratio is currently 4.1 days.

HBI opened at $18.27 on Thursday. Hanesbrands has a 1 year low of $11.57 and a 1 year high of $22.57. The stock has a market capitalization of $6.66 billion, a price-to-earnings ratio of 10.68, a PEG ratio of 1.09 and a beta of 0.86. The company has a debt-to-equity ratio of 3.64, a quick ratio of 0.72 and a current ratio of 1.73.

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Hanesbrands (NYSE:HBI) last released its quarterly earnings results on Thursday, February 7th. The textile maker reported $0.48 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.46 by $0.02. Hanesbrands had a return on equity of 76.43% and a net margin of 8.13%. The firm had revenue of $1.77 billion for the quarter, compared to the consensus estimate of $1.71 billion. During the same quarter last year, the business posted $0.52 EPS. The company’s revenue for the quarter was up 7.5% on a year-over-year basis. On average, analysts expect that Hanesbrands will post 1.76 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 12th. Investors of record on Tuesday, February 19th will be given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 3.28%. The ex-dividend date is Friday, February 15th. Hanesbrands’s dividend payout ratio is currently 35.09%.

In other news, Director Jessica Tuchman Mathews sold 15,000 shares of the firm’s stock in a transaction on Friday, December 14th. The stock was sold at an average price of $13.57, for a total value of $203,550.00. Following the transaction, the director now directly owns 139,693 shares in the company, valued at approximately $1,895,634.01. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider W Howard Upchurch, Jr. sold 40,688 shares of the firm’s stock in a transaction on Wednesday, December 12th. The stock was sold at an average price of $14.81, for a total value of $602,589.28. Following the completion of the transaction, the insider now owns 453,282 shares in the company, valued at $6,713,106.42. The disclosure for this sale can be found here. 1.06% of the stock is owned by company insiders.

Several large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its position in shares of Hanesbrands by 1.2% in the third quarter. Vanguard Group Inc. now owns 38,210,795 shares of the textile maker’s stock valued at $704,224,000 after acquiring an additional 437,526 shares during the last quarter. Vanguard Group Inc increased its position in shares of Hanesbrands by 1.2% in the third quarter. Vanguard Group Inc now owns 38,210,795 shares of the textile maker’s stock valued at $704,224,000 after acquiring an additional 437,526 shares during the last quarter. BlackRock Inc. increased its position in shares of Hanesbrands by 3.7% in the fourth quarter. BlackRock Inc. now owns 24,750,735 shares of the textile maker’s stock valued at $310,126,000 after acquiring an additional 887,593 shares during the last quarter. Parnassus Investments CA increased its position in shares of Hanesbrands by 0.5% in the fourth quarter. Parnassus Investments CA now owns 17,136,129 shares of the textile maker’s stock valued at $214,716,000 after acquiring an additional 80,397 shares during the last quarter. Finally, Shapiro Capital Management LLC increased its position in shares of Hanesbrands by 5.7% in the fourth quarter. Shapiro Capital Management LLC now owns 14,487,327 shares of the textile maker’s stock valued at $181,526,000 after acquiring an additional 786,671 shares during the last quarter. 98.61% of the stock is currently owned by institutional investors and hedge funds.

HBI has been the topic of several recent analyst reports. Citigroup lifted their target price on Hanesbrands from $17.00 to $18.00 and gave the stock a “neutral” rating in a report on Monday, December 3rd. Wells Fargo & Co reduced their target price on Hanesbrands from $18.00 to $14.00 and set a “market perform” rating on the stock in a report on Wednesday, January 2nd. Zacks Investment Research lowered Hanesbrands from a “hold” rating to a “sell” rating in a report on Thursday, January 3rd. Deutsche Bank lowered Hanesbrands from a “buy” rating to a “hold” rating and reduced their target price for the stock from $24.00 to $16.00 in a report on Friday, January 11th. Finally, Barclays set a $16.00 target price on Hanesbrands and gave the stock a “hold” rating in a report on Friday, January 11th. One analyst has rated the stock with a sell rating, ten have issued a hold rating and five have given a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average price target of $20.53.

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About Hanesbrands

Hanesbrands Inc, a consumer goods company, designs, manufactures, sources, and sells a range of basic apparel for men, women, and children in the United States. The company operates through three segments: Innerwear, Activewear, and International. It sells bras, panties, men's underwear, children's underwear, activewear, socks, hosiery, intimate apparel, shapewears, and home goods; and T-shirts, fleece, sport shirts, performance T-shirts and shorts, sports bras, and thermals, as well as licensed logo apparel in collegiate bookstores, mass retailers, and other channels.

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