Is Buying Stock Like Hanesbrands Inc. Good Idea After Today’s Bearish Options Activity?

 Is Buying Stock Like Hanesbrands Inc. Good Idea After Today's Bearish Options Activity?

In today’s session Hanesbrands Inc. (HBI) recorded an unusually high (649) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious HBI decrease. With 649 contracts traded and 2754 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: HBI161118P00025000 closed last at: $1 or 4.8% down. About 802,870 shares traded hands. Hanesbrands Inc. (NYSE:HBI) has declined 12.93% since March 4, 2016 and is downtrending. It has underperformed by 20.97% the S&P500.

Analysts await Hanesbrands Inc. (NYSE:HBI) to report earnings on October, 26. They expect $0.56 EPS, up 12.00% or $0.06 from last year’s $0.5 per share. HBI’s profit will be $212.19M for 11.39 P/E if the $0.56 EPS becomes a reality. After $0.51 actual EPS reported by Hanesbrands Inc. for the previous quarter, Wall Street now forecasts 9.80% EPS growth.

Hanesbrands Inc. (NYSE:HBI) Ratings Coverage

Out of 12 analysts covering Hanesbrands (NYSE:HBI), 11 rate it a “Buy”, 0 “Sell”, while 1 “Hold”. This means 92% are positive. $42 is the highest target while $30 is the lowest. The $34.09 average target is 33.58% above today’s ($25.52) stock price. Hanesbrands has been the topic of 19 analyst reports since September 17, 2015 according to StockzIntelligence Inc. Citigroup maintained Hanesbrands Inc. (NYSE:HBI) on Thursday, August 4 with “Buy” rating. UBS maintained it with “Buy” rating and $35 target price in Friday, February 5 report. DA Davidson downgraded the stock to “Neutral” rating in Monday, October 26 report. Nomura upgraded the shares of HBI in a report on Monday, January 11 to “Buy” rating. Wells Fargo reinitiated Hanesbrands Inc. (NYSE:HBI) on Thursday, October 22 with “Outperform” rating. Goldman Sachs upgraded Hanesbrands Inc. (NYSE:HBI) rating on Friday, December 4. Goldman Sachs has “Conviction Buy” rating and $42 price target. Oppenheimer initiated the shares of HBI in a report on Friday, October 16 with “Outperform” rating. As per Thursday, September 17, the company rating was upgraded by Goldman Sachs.

According to Zacks Investment Research, “Hanesbrands Inc. is a leading marketer of innerwear, outerwear and hosiery apparel under strong consumer brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and Wonderbra. The company designs, manufactures, sources and sells T-shirts, bras, panties, men’s underwear, children’s underwear, socks, hosiery, casual wear and active wear. Hanesbrands Inc. is a world-class consumer goods company with more than a century of history and a portfolio of leading apparel essentials brands including Hanes, Champion, Playtex, Bali, L’eggs, Just My Size, Barely There and Wonderbra. Hanesbrands sells high-volume apparel essentials such as T-shirts, bras, panties, men’s underwear, kids’ underwear, socks, hosiery, casualwear and activewear.”

Insitutional Activity: The institutional sentiment increased to 1.04 in 2016 Q2. Its up 0.07, from 0.97 in 2016Q1. The ratio increased, as 55 funds sold all Hanesbrands Inc. shares owned while 172 reduced positions. 59 funds bought stakes while 177 increased positions. They now own 331.36 million shares or 4.80% more from 316.18 million shares in 2016Q1.
Teton Advsr last reported 0.23% of its portfolio in the stock. Standard Life Invests Ltd holds 1.52% or 13.34M shares in its portfolio. Strs Ohio has 0% invested in the company for 28,487 shares. Hancock Hldg Co holds 0.01% of its portfolio in Hanesbrands Inc. (NYSE:HBI) for 7,955 shares. King Luther Capital Mgmt Corp has 0% invested in the company for 8,414 shares. Moreover, Nordea Invest Mgmt has 0% invested in Hanesbrands Inc. (NYSE:HBI) for 12,607 shares. Westwood Group accumulated 2.19 million shares or 0.49% of the stock. Baldwin Brothers Ma, a Massachusetts-based fund reported 2,750 shares. Comerica National Bank has 0.03% invested in the company for 137,355 shares. Shufro Rose Co Ltd accumulated 249,345 shares or 0.69% of the stock. Buckingham Mgmt accumulated 3.01% or 987,852 shares. Advantus Capital accumulated 37,297 shares or 0.03% of the stock. Cohen & Steers accumulated 0.05% or 691,569 shares. Palo Inc last reported 14,200 shares in the company. Stifel last reported 0.03% of its portfolio in the stock.

Insider Transactions: Since May 2, 2016, the stock had 3 buys, and 1 insider sale for $322,575 net activity. $58,480 worth of Hanesbrands Inc. (NYSE:HBI) shares were bought by Mathews Jessica Tuchman. $299,962 worth of Hanesbrands Inc. (NYSE:HBI) shares were sold by Marsh John T.. $514,742 worth of Hanesbrands Inc. (NYSE:HBI) was bought by NOLL RICHARD A.

Hanesbrands Inc. is a manufacturer and marketer of apparels. The company has a market cap of $9.67 billion. The Firm operates through four divisions: Innerwear, Activewear, Direct to Consumer and International. It has a 20.5 P/E ratio. The Company’s portfolio of brands includes Hanes, Champion, Maidenform, DIM, Playtex, Bali, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Flexees, Lilyette and Gear for Sports.

HBI Company Profile

Hanesbrands Inc., incorporated on October 30, 2005, is a maker and marketer of apparels. The Firm operates through four divisions: Innerwear, Activewear, Direct to Consumer and International. The Company’s portfolio of brands includes Hanes, Champion, Maidenform, DIM, Playtex, Bali, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Flexees, Lilyette and Gear for Sports. The Company’s Hanes brand offers various products, including men’s, women’s and children’s underwear, bras, socks, T-shirts, fleece, shape wear and sheer hosiery. The Company’s Champion brand offers athletic apparel, including sports bras, team uniforms, and gym essentials, such as T-shirts, mesh shorts and fleece hoodies.

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