Gildan's HanesBrands Merger Sparks Surging Volume to 236th Market Rank

Gildan Activewear (GIL) closed at $54.60 on August 20, 2025, down 3.52%, with a daily trading volume of $440 million, a 446.26% increase from the previous day, ranking 236th in market activity. The stock’s performance follows a significant corporate development: the company announced a definitive merger agreement to acquire HanesBrands Inc. through a series of mergers and conversions, positioning HanesBrands as a wholly owned subsidiary. The transaction includes converting HanesBrands’ equity into Gildan shares and cash, contingent on specific conditions. The deal could lead to HanesBrands’ delisting from the NYSE, reshaping market dynamics for both firms.

Analysts remain optimistic about Gildan’s outlook, with a recent “Buy” rating and a $90 price target. Spark, TipRanks’ AI analyst, upgraded the stock to “Outperform,” citing strong earnings, favorable technical indicators, and operational efficiency as key strengths. However, challenges such as moderate valuation metrics and international market risks temper the bullish sentiment. Gildan’s current market capitalization stands at $11.63 billion, reflecting its dominant position in activewear and hosiery markets across North America.

The acquisition of HanesBrands marks a strategic expansion for Gildan, enhancing its portfolio in activewear and undergarments. The company’s focus on North America, combined with its established brands like GoldToe and Comfort Colors, positions it to leverage economies of scale. Stakeholders will closely monitor the transaction’s regulatory and operational hurdles, as well as its impact on Gildan’s debt structure and cash flow. Analysts highlight the potential for improved profitability through synergies but caution that integration risks could affect short-term performance.

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