Hanesbrands stock jumps toward a 5-month high after WSJ report of activist investor pushing for change

Shares of Hanesbrands Inc.
HBI,
+5.28%
jumped 5.6% toward a five-month high in premarket trading Tuesday, after the The Wall Street Journal reported that activist investor Barington Capital is pushing the underwear company to make moves to reverse the weakness in the stock, and to make changes to its board of directors. Barington, which the WSJ report said has built up an undetermined stake in Hanesbrands, has told the company that it needs to immediately focus on cash generation and debt reduction, and said management’s ineffective response to market challenges has led to rapidly deteriorating results. The stock has tumbled in early February, after the company reported disappointing results, warned of a surprise loss and eliminated its dividend. Hanesebrands’ stock has dropped 18.1% year to date through Monday, while the S&P 500
SPX,
-0.64%
has rallied 17.7%.