Royal Bank of Canada Trims GAP (GPS) Target Price to $30.00

GAP (NYSE:GPS) had its price target trimmed by Royal Bank of Canada to $30.00 in a research note released on Thursday, The Fly reports. They currently have a positive rating on the apparel retailer’s stock.

GPS has been the subject of a number of other research reports. Citigroup raised GAP from a sell rating to a neutral rating and set a $28.00 target price for the company in a research report on Monday, August 27th. They noted that the move was a valuation call. Wedbush set a $25.00 target price on GAP and gave the stock a neutral rating in a research report on Thursday, October 11th. Zacks Investment Research lowered GAP from a buy rating to a hold rating in a research report on Tuesday, August 21st. JPMorgan Chase & Co. lowered GAP from a neutral rating to an underweight rating and decreased their target price for the stock from $30.00 to $24.00 in a research report on Thursday, October 18th. Finally, Guggenheim reissued a hold rating on shares of GAP in a research report on Friday, August 24th. Two investment analysts have rated the stock with a sell rating, nineteen have issued a hold rating and seven have issued a buy rating to the company’s stock. GAP currently has a consensus rating of Hold and a consensus price target of $32.72.

GAP stock traded up $0.64 during mid-day trading on Thursday, reaching $27.91. The stock had a trading volume of 4,210,453 shares, compared to its average volume of 5,091,284. The stock has a market cap of $10.96 billion, a price-to-earnings ratio of 13.10, a PEG ratio of 1.23 and a beta of 0.64. GAP has a one year low of $25.27 and a one year high of $35.68. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.96 and a quick ratio of 1.02.

GAP (NYSE:GPS) last announced its quarterly earnings results on Thursday, August 23rd. The apparel retailer reported $0.76 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.72 by $0.04. The company had revenue of $4.09 billion for the quarter, compared to analysts’ expectations of $4.02 billion. GAP had a net margin of 5.43% and a return on equity of 29.25%. GAP’s revenue was up 7.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.58 EPS. On average, equities analysts expect that GAP will post 2.58 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 31st. Stockholders of record on Wednesday, October 10th were given a dividend of $0.2425 per share. This represents a $0.97 annualized dividend and a dividend yield of 3.48%. The ex-dividend date was Tuesday, October 9th. GAP’s payout ratio is currently 45.54%.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. IFM Investors Pty Ltd increased its position in shares of GAP by 16.4% during the 2nd quarter. IFM Investors Pty Ltd now owns 12,571 shares of the apparel retailer’s stock valued at $407,000 after purchasing an additional 1,769 shares during the last quarter. Ladenburg Thalmann Financial Services Inc. increased its position in shares of GAP by 28.8% during the 1st quarter. Ladenburg Thalmann Financial Services Inc. now owns 7,928 shares of the apparel retailer’s stock valued at $246,000 after purchasing an additional 1,772 shares during the last quarter. LPL Financial LLC increased its position in shares of GAP by 15.0% during the 1st quarter. LPL Financial LLC now owns 13,647 shares of the apparel retailer’s stock valued at $426,000 after purchasing an additional 1,783 shares during the last quarter. CIBC Asset Management Inc grew its stake in shares of GAP by 5.6% during the 2nd quarter. CIBC Asset Management Inc now owns 33,709 shares of the apparel retailer’s stock valued at $1,092,000 after acquiring an additional 1,784 shares during the period. Finally, State of Alaska Department of Revenue grew its stake in shares of GAP by 2.7% during the 2nd quarter. State of Alaska Department of Revenue now owns 69,970 shares of the apparel retailer’s stock valued at $2,264,000 after acquiring an additional 1,830 shares during the period. 58.10% of the stock is owned by hedge funds and other institutional investors.

GAP Company Profile

The Gap, Inc operates as an apparel retail company worldwide. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, and Intermix brands. Its products include denim, tees, button-downs, khakis, and other products; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities to women and girls.

Further Reading: What is the Ex-Dividend Date in Investing?

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