Gap Inc (NYSE:GPS) Receives Average Recommendation of “Hold” from Brokerages

Gap Inc (NYSE:GPS) has been assigned an average rating of “Hold” from the nineteen ratings firms that are presently covering the company, MarketBeat Ratings reports. Five analysts have rated the stock with a sell rating, eleven have issued a hold rating and two have assigned a buy rating to the company. The average 1 year price target among brokers that have issued a report on the stock in the last year is $24.17.

GPS has been the subject of several research reports. Credit Suisse Group cut their price target on GAP from $27.00 to $26.00 and set a “neutral” rating for the company in a research note on Tuesday, February 26th. Guggenheim reiterated a “hold” rating on shares of GAP in a research note on Friday, March 1st. Deutsche Bank increased their price target on GAP from $30.00 to $34.00 and gave the stock a “hold” rating in a research note on Friday, March 1st. Standpoint Research downgraded GAP from a “buy” rating to a “hold” rating in a research note on Friday, March 1st. Finally, ValuEngine upgraded GAP from a “strong sell” rating to a “sell” rating in a research note on Friday, March 1st.

Shares of GAP stock traded down $0.19 during trading hours on Tuesday, hitting $17.49. 5,476,425 shares of the company’s stock traded hands, compared to its average volume of 5,754,531. GAP has a 12-month low of $17.12 and a 12-month high of $34.19. The stock has a market capitalization of $6.67 billion, a PE ratio of 6.75, a price-to-earnings-growth ratio of 0.98 and a beta of 0.79. The stock’s fifty day moving average is $20.30. The company has a debt-to-equity ratio of 1.92, a current ratio of 1.49 and a quick ratio of 0.70.

GAP (NYSE:GPS) last posted its quarterly earnings results on Thursday, May 30th. The apparel retailer reported $0.24 earnings per share for the quarter, missing the consensus estimate of $0.31 by ($0.07). The firm had revenue of $3.71 billion for the quarter, compared to the consensus estimate of $3.78 billion. GAP had a return on equity of 26.73% and a net margin of 6.46%. The firm’s revenue was down 2.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.42 EPS. Sell-side analysts anticipate that GAP will post 2.07 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 31st. Shareholders of record on Wednesday, July 10th will be paid a $0.2425 dividend. The ex-dividend date is Tuesday, July 9th. This represents a $0.97 annualized dividend and a yield of 5.55%. GAP’s dividend payout ratio is currently 37.45%.

In other GAP news, EVP Julie Gruber sold 3,286 shares of the firm’s stock in a transaction dated Monday, May 13th. The stock was sold at an average price of $24.00, for a total value of $78,864.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Mcneil S. Fiske, Jr. sold 16,183 shares of the firm’s stock in a transaction dated Friday, June 21st. The shares were sold at an average price of $18.00, for a total value of $291,294.00. Following the completion of the sale, the chief executive officer now directly owns 32,500 shares in the company, valued at approximately $585,000. The disclosure for this sale can be found here. 37.60% of the stock is owned by company insiders.

Large investors have recently added to or reduced their stakes in the business. FMR LLC increased its stake in GAP by 1,723.2% in the 1st quarter. FMR LLC now owns 251,986 shares of the apparel retailer’s stock worth $6,597,000 after purchasing an additional 238,165 shares during the period. Cerebellum GP LLC increased its stake in GAP by 29.9% in the 1st quarter. Cerebellum GP LLC now owns 13,035 shares of the apparel retailer’s stock worth $341,000 after purchasing an additional 3,003 shares during the period. Bayesian Capital Management LP purchased a new position in GAP in the 1st quarter worth approximately $2,906,000. Andra AP fonden bought a new stake in shares of GAP in the 1st quarter worth approximately $7,016,000. Finally, Meiji Yasuda Asset Management Co Ltd. bought a new stake in shares of GAP in the 1st quarter worth approximately $246,000. 57.75% of the stock is currently owned by hedge funds and other institutional investors.

About GAP

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, Intermix, and Hill City 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.

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Analyst Recommendations for GAP (NYSE:GPS)

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