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.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...