Hanesbrands Inc. (HBI) Could Be A Humongous Winner

Analysts at Deutsche Bank cut their rating on shares of Hanesbrands Inc. (NYSE:HBI) from Buy to Hold in their opinion released on January 11. Analysts at Stifel issued an upgrade from Hold to Buy for the stock, in a research note that dated back to April 23.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Hanesbrands Inc. (NYSE:HBI)’s prospects. The earliest insider trade took place on 12/14/2018. Mathews Jessica Tuchman parted with a total of 15 thousand shares of company at average share price of $13.57. The total for the sales was set at $203.55 thousand. After this transaction, the Director account balance stood at 142.59 thousand shares. The stock grew 0.96 percent since that insider sale. On 12/12/2018, Upchurch W Howard Jr, Group President, IW Americas, sold 40.69 thousand shares at a price per share of $14.81. This removed 602.59 thousand shares from the insider’s fortune and the stock saw a -7.49 percent retreat in value since the news became public. This transaction left 448.67 thousand shares in the Group President, IW Americas account. On 11/20/2018, CFO Hytinen Barry performed a purchase transaction worth $147.36 thousand. This purchase at $14.59 each has added 10.1 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -6.1 percent decrease since the transaction was reported. The insider now is left with 97.54 thousand shares remaining in the account. Evans Gerald, who performs the CEO job, bought 6.5 thousand shares for $97.37 thousand. The acquisition occurred on 11/19/2018 was priced at $14.98 per share. The share price plunged -8.54 percent since the reporting date. Evans Gerald now left with a stake of 1.39 million HBI stock worth $19.09 million after the insider buying.

Hanesbrands Inc. (HBI) is expected to jump by 35.55 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $28-month high price target. This represents a whopping 104.38 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $17, which represents a return potential of 24.09 percent when compared to the closing price of the stock of $13.7 on Friday, January 11. The lowest price target for the stock is $12 — slightly more than -12.41 percent from HBI’s current share price.

The shares are currently floating around the first support level of $13.47. Below this, the next support is placed in the zone of $13.25. Till the time, the HBI stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.63 on daily chart, which may remain a cause for concern. If the price breaks below $13.25 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $13.87 mark may result into a pull-back move towards $14.05 level.

HBI shares accumulated 0.08 points or 0.59 percent on Friday to $13.7 with a light trade volume of 5.346 million shares. After opening the session at $13.5, the shares went as high as $13.82 and as low as $13.42, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $4.91 billion and now has 358.63 million shares outstanding. Hanesbrands Inc. (HBI) stock has lost -7.93 percent of market value in 21 trading days.

HBI stock has a trailing 3-year beta of 0.73, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.27 a share in the trailing twelve months. The stock’s value has surged 9.34 percent year to date (YTD) against a decline of -36.72 percent in 12 month’s time. The company’s shares still trade -41.28 percent away from its 1-year high of $23.33 and 18.41 percent up from 52-week low of $11.57. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Hanesbrands Inc. (HBI) are trading at a P/E ratio of 12.28 times earnings reported for the past 12 months. The industry HBI operates in has an average P/E of 40.11. Its P/E ratio went as low as 14.83X and as high as 27.89 over the 5-year span. Further, it is sporting a 0.74 on the Price-to-Sales ratio. Compare this with the industry average P/S of 6.48. 41.7 percent is the gross profit margin for Hanesbrands Inc. and operating margin sits at 11.1 percent. Along with this, the net profit margin is 0.1 percent.