Tuesday, February 28, 2017

Dividend Stock To Watch: Hanesbrands Inc. (HBI)

Hanesbrands Inc. (NYSE:HBI) share price jumped at US$ 21.53 before falling back to end the trade at US$ 21.38 a share. The dividend stock is -28.29% off a 52-week high stock price of US$ 30.42 but is up 13.91% since hitting the US$ 18.91. Investors are buying the stock with a trailing-twelve-month price-to-earnings (P/E) ratio of 15.26.

After a 2.2% rise from previous close of US$ 20.92, Hanesbrands Inc. (HBI) has a US$ 8.13 Billion market cap. The company pays a US$ 0.15-cent-per-share quarterly dividend, giving it a 2.81% yield. That brings its full year payout to US$ 0.6 and 31.1% annual payout ratio based on EPS. According to FT, Year on year, both dividends per share and earnings per share excluding extraordinary items growth increased 10.00% and 31.42%, respectively. The positive trend in dividend payments is noteworthy since very few companies in the Apparel/Accessories industry pay a dividend. Additionally, five year annualized earnings per share growth is in-line with the industry average relative to its peers.

The HBI has tumbled -0.14% year-to-date. The equity has slowed down in recent weeks, with shares lower about -11.1% in the past three months. It added 2.54%, climbed -9.61% and jumped -22.06% in the week, one month and six months, respectively. Revenue growth rate was recorded at 6.3% and net income per share was seen moving at a 18% rate in the past five years.

Hanesbrands Inc. (NYSE:HBI) is over 27% above analysts’ consensus price target of US$ 27.54. The stock has yet to strike analysts’ low price target of US$ 22, and is still below the high US$ 34 target. On a price appreciation basis over the past 12 months, the stock returned -22.29%.

Financial Times data shows, In 2016, HanesBrands Inc reported a dividend of 0.44 USD, which represents a 10.00% increase over last year. The 9 analysts covering the company expect dividends of 0.57 USD for the upcoming fiscal year, an increase of 29.77%. The most recent short interest data show 7.51% of the company’s stock are short sold. It would take about 3.62 days to cover all short positions. In terms of volatility, it has a beta coefficient of 0.74 and technical analysis volatility indicator called Average True Range or ATR around 0.69.

Hanesbrands Inc. (NYSE:HBI) closed -12.85% below its 200-day moving average which many technicians use as a guide to the long-term trend, so stocks above the line are considered to be in longer-term uptrends, while those below it are considered to be in downtrends. The stock is -1.49% below another chart threshold, its 50-day moving average and 0.9% above its 20-day simple moving average.

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Dividend Stock To Watch: Hanesbrands Inc. (HBI)

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