GAP (NYSE:GAP) Stock Price Down 4% – Should You Sell?

by · The Markets Daily

The Gap, Inc. (NYSE:GAP – Get Free Report) was down 4% during mid-day trading on Monday . The company traded as low as $21.88 and last traded at $21.92. Approximately 1,229,500 shares were traded during trading, a decline of 84% from the average daily volume of 7,786,476 shares. The stock had previously closed at $22.83.

Analyst Upgrades and Downgrades

GAP has been the topic of several recent analyst reports. Wells Fargo & Company lowered GAP from an “overweight” rating to an “equal weight” rating and dropped their price target for the company from $30.00 to $24.00 in a research report on Wednesday, April 30th. Morgan Stanley lowered their target price on GAP from $30.00 to $27.00 and set an “overweight” rating on the stock in a report on Tuesday, May 6th. Jefferies Financial Group reissued a “hold” rating and set a $29.00 price objective (up previously from $26.00) on shares of GAP in a report on Wednesday, May 21st. UBS Group decreased their price target on GAP from $29.00 to $27.00 and set a “neutral” rating on the stock in a research note on Friday, May 30th. Finally, Barclays raised their price target on shares of GAP from $26.00 to $33.00 and gave the company an “overweight” rating in a report on Tuesday, May 27th. Seven equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $28.47.

Check Out Our Latest Stock Analysis on GAP

GAP Trading Down 5.4%

The company’s fifty day moving average price is $23.57 and its 200-day moving average price is $22.45. The stock has a market cap of $8.14 billion, a price-to-earnings ratio of 9.36, a P/E/G ratio of 2.48 and a beta of 2.14. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.71 and a quick ratio of 0.98.

GAP (NYSE:GAP – Get Free Report) last released its earnings results on Thursday, May 29th. The company reported $0.51 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.07. The business had revenue of $3.46 billion for the quarter, compared to the consensus estimate of $3.41 billion. GAP had a return on equity of 27.86% and a net margin of 5.80%. The business’s quarterly revenue was up 2.2% compared to the same quarter last year. During the same quarter last year, the business posted $0.41 earnings per share. On average, research analysts expect that The Gap, Inc. will post 2.02 EPS for the current fiscal year.

GAP Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 30th. Investors of record on Wednesday, July 9th will be paid a $0.165 dividend. The ex-dividend date is Wednesday, July 9th. This represents a $0.66 dividend on an annualized basis and a yield of 3.05%. GAP’s dividend payout ratio is currently 28.57%.

Insider Buying and Selling

In related news, CEO Mark Breitbard sold 51,385 shares of the business’s stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $27.00, for a total value of $1,387,395.00. Following the transaction, the chief executive officer owned 123,985 shares in the company, valued at $3,347,595. The trade was a 29.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 31.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On GAP

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Dodge & Cox bought a new position in shares of GAP in the first quarter valued at $592,222,000. Ameriprise Financial Inc. acquired a new stake in GAP during the 1st quarter valued at $63,674,000. Bank of New York Mellon Corp acquired a new position in GAP during the 1st quarter worth about $56,763,000. LSV Asset Management acquired a new position in GAP during the 1st quarter worth $32,655,000. Finally, Rhumbline Advisers acquired a new stake in shares of GAP during the 1st quarter worth approximately $12,210,000. Institutional investors and hedge funds own 58.81% of the company’s stock.

About GAP

(Get Free Report)

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections.

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