Gildan Announces Stock Buyback
The Gildan announcement goes as follows from their press release this morning:
“Gildan Activewear Announces Plan to Buy Back Shares Through Private Agreements
Montreal, February 28, 2017 – Gildan Activewear Inc. (GIL: TSX and NYSE) announced today that it intends to purchase for cancellation up to 877,000 of its common shares pursuant to one or more private agreements between Gildan and an arm’s‐length third‐party seller. The purchases will form part of Gildan’s normal course issuer bid for up to 11,512,267 shares announced on February 23, 2017.”
What does it mean?
- Gildan is profitable enough and generating enough cash to make this buyback.
- Maybe they are finished with acquisitions for the time being. One other place to spend your cash would be to acquire other assets. Gildan just bought in pretty short order: Alstyle, Anvil, Comfort Colors and American Apparel. Perhaps the buying spree is over. This in particular might squelch some of the rumors of them trying to buy a distributor.
- Sometimes a buyback can strengthen stock prices, that would remain to be seen.