Raymond James Financial Services Advisors Inc. recently announced that it has lowered its stake in textile maker Hanesbrands Inc. (NYSE:HBI) by 24.5% during the fourth quarter, as per their most recent disclosure with the Securities and Exchange Commission. The firm now holds 275,617 shares of the company’s stock, down from 365,030 shares previously owned.
With this transaction, Raymond James Financial Services Advisors Inc.’s ownership percentage in Hanesbrands has dropped to approximately 0.08%. The value of their shares sold amounts to $1,753,000 after selling 89,413 shares during the quarter. These figures show that there is a significant change in the company’s strategy regarding investment portfolios.
Hanesbrands currently operates at a price-to-earnings ratio of -4.91 and has a beta of 1.58 while hovering around a market capitalization of $1.37 billion opening at $3.93 on Friday.
Furthermore, Hanesbrands boasts an impressive quick ratio of 0.60 along with a current ratio of 1.72 which indicates ample cash reserves available for immediate use in case any short-term obligations occur.
The fifty-day moving average price of Hanesbrands stands at $4.73 while its two-hundred-day moving average price is set at $5.92 due to recent fluctuations in the industry caused by adverse pandemic situations globally.
HBI hit its lowest point this past year at a bearish 52-week low of $3 with slight optimism and confident changes clearly spurring an uptick resulting in hitting bullish territory year-end with prices rising to a comfortable high reaching $12 per share.
In conclusion, with Raymond James Financial Services Advisors Inc.’s divestment and assigned portfolio adjustments focusing on COVID-induced implications as challenges arise— only highlights how corporate entities continue adjusting to maintain balance within diversified portfolios investing prudently whilst managing risks.
Institutional Investors Expand Holdings in Hanesbrands Amid Rating Downgrades from Research Analysts
Hanesbrands has recently been in the news for the buying and selling activities of institutional investors. Accurate Wealth Management LLC recently purchased shares valued at $31,000 while Allworth Financial LP raised its stake by 108.8% after purchasing an additional 2,707 shares. Ronald Blue Trust Inc. lifted its position by 189.7%, while UMB Bank n.a boosted its stake by 106.8%, and Quadrant Capital Group LLC increased holdings by an impressive 463.9%. As a result, currently, 81.87% of the stock is owned by institutional investors and hedge funds.
The company’s rating has taken a hit from some research analysts who have issued reports on the stock’s performance. Citigroup dropped its price target on Hanesbrands from $8 to $7 and gave it a “neutral” rating, while Stifel Nicolaus decreased their price target from $7 to $6 in May this year.
Hanesbrands is engaged in designing, manufacturing, sourcing, and selling basic apparel such as T-shirts, bras, panties, shape-wear, underwear, socks and activewear through three segments; Innerwear, Activewear and International which includes products such as men’s underwear, women’s panties, children’s underwear and socks along with intimate wear such as bras and shape-wear.
The textile maker reported earnings per share (EPS) for Q1 of ($0.06), matching the consensus estimate of ($0.06). The company made sales worth $1.39 billion while analyst estimates stood at $1.36 billion for Q1 alone indicating that Hanesbrands is still performing well in a slightly challenging quarter.
While there may be some uncertainty around how Hanesbrands will fare in upcoming quarters according to certain research analysts’ views on the company’s performance so far this year but other indicators show strength remains within their business conduct up to this point. Regardless, the company stays as one of the leading players in the textile industry and investors eagerly watch its performance.
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