FMP
Jun 6, 2024 1:03 AM - Gordon Thompson
On Wednesday, June 5, 2024, UBS updated its stance on Hanesbrands (NYSE:HBI), changing its grade to Neutral. This adjustment reflects a hold action on the stock, which was priced at $5.3 at the time of the announcement. This reevaluation by UBS was reported following a more positive outlook on Hanesbrands after the sale of Champion. The news was published by TheFly, underscoring the financial institution's neutral position on HBI.
Hanesbrands, a well-known player in the apparel industry, has recently made headlines with its decision to sell its Champion sports apparel label to Authentic Brands Group. This deal, valued at a minimum of $1.2 billion, signifies a strategic pivot for Hanesbrands, aiming to streamline its operations and concentrate on its core business areas. The sale of Champion, a prominent brand within the sports apparel sector, to Authentic Brands Group, which owns a portfolio of over 50 brands, is a major move in the apparel industry.
The transaction's significance is further highlighted by its potential to reach up to $1.5 billion, should certain performance thresholds be met. This allows for an additional cash contingent consideration of up to $300 million, marking a notable shift in the ownership of the Champion brand. This strategic sale was disclosed on Wednesday, marking a pivotal moment for Hanesbrands in its business strategy.
Following this announcement, Hanesbrands Inc. (HBI) experienced a notable increase in its share price during intraday trading on Wednesday. The stock price rose by 4.95% to $5.3, with a change of $0.25, fluctuating between a low of $5.09 and a high of $5.58 during the day. Over the past year, HBI's stock has ranged from a low of $3.54 to a high of $5.86, with the company's market capitalization standing at approximately $1.86 billion and a trading volume of about 9.99 million shares. This financial performance and strategic maneuvering by Hanesbrands reflect its efforts to focus on its core business areas while capitalizing on the value of its Champion brand.
Jan 16, 2024 4:18 PM - Samuel Abdelshahid
In the hustle and bustle of the trading world, having a trustworthy laptop is like having a reliable partner by your side. Making well-informed decisions and staying ahead of market trends become second nature with the right device. However, the quest for a budget-friendly trading laptop t...
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Introduction: In the world of financial analysis, a profound grasp of essential profitability metrics is vital. This blog delves into three pivotal metrics—ROE (Return on Equity), ROA (Return on Assets), and Net Profit Margin—offering clear insights without unnecessary complexity. Exploring RO...
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