I am raising the stop price for Hanesbrands (HBI) to $22.25 in response to its 5% jump in value over the past two trading days. Now less than a dollar from my target price of $23.50 and only three weeks until the end of its target hold period, I want to ensure a minimum gain of at least 10% for everyone who got in on this trade at or below my limit price. 

There has been no official news to explain the sudden interest in HBI, and its next quarterly earnings report isn’t for another seven weeks so that isn’t it, either. But somebody is buying it in a big way, pushing its share price above its upper Bollinger Band this morning. It might be an institutional investor building a large position in the name, but could just as easily be a hedge fund speculating on a buyout. Regardless, it’s time to lock in a nice profit and then see how this one plays out. 

NOTE: Unlike our stop loss prices which are only activated if a stock closes beneath that level on a dividend-adjusted basis, once a stop loss price has been raised to lock in a profit it is a live order and will be executed immediately if/when the stock trades at or beneath that price.