Why Is Hanesbrands Stock Gaining Premarket Wednesday?
Portfolio Pulse from Lekha Gupta
Hanesbrands Inc. (NYSE:HBI) shares are trading higher after the company announced a deal to sell its Champion business to Authentic Brands Group for up to $1.5 billion. The transaction is expected to close in the second half of 2024, and HanesBrands plans to use the proceeds to accelerate debt repayment. The company will update its full-year 2024 guidance in conjunction with its second-quarter earnings results.
June 05, 2024 | 1:24 pm
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POSITIVE IMPACT
Investors can gain exposure to Hanesbrands Inc. through the Pacer US Small Cap Cash Cows 100 ETF (BATS:CALF), which may benefit from the positive market reaction to Hanesbrands' strategic sale of its Champion business.
The Pacer US Small Cap Cash Cows 100 ETF includes Hanesbrands Inc. in its portfolio. The positive market reaction to Hanesbrands' strategic sale of its Champion business is likely to benefit the ETF's performance in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Hanesbrands Inc. shares are up 13.49% premarket after announcing the sale of its Champion business for up to $1.5 billion. The company plans to use the proceeds to accelerate debt repayment and will update its full-year 2024 guidance.
The sale of the Champion business is a significant strategic move for Hanesbrands, providing substantial proceeds that will be used to reduce debt. This deleveraging is likely to improve the company's financial health and investor sentiment, driving the stock price higher in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100