Short Interest in The Gap, Inc. (NYSE:GPS) Grows By 10.9%

The Gap, Inc. (NYSE:GPS) was the target of a significant growth in short interest during the month of June. As of June 30th, there was short interest totalling 34,940,000 shares, a growth of 10.9% from the June 15th total of 31,510,000 shares. Based on an average daily volume of 8,090,000 shares, the short-interest ratio is currently 4.3 days. Approximately 15.6% of the shares of the company are sold short.

GAP Price Performance

Shares of NYSE:GPS traded up $1.11 on Tuesday, reaching $24.07. The company’s stock had a trading volume of 4,975,598 shares, compared to its average volume of 7,793,460. The company has a 50-day simple moving average of $23.80 and a 200 day simple moving average of $22.29. GAP has a 52-week low of $9.02 and a 52-week high of $30.75. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.80 and a current ratio of 1.50. The company has a market cap of $9.03 billion, a P/E ratio of 13.18, a PEG ratio of 4.08 and a beta of 2.39.

GAP (NYSE:GPS) last released its quarterly earnings results on Thursday, May 30th. The apparel retailer reported $0.41 EPS for the quarter, topping the consensus estimate of $0.14 by $0.27. GAP had a return on equity of 27.57% and a net margin of 4.52%. The company had revenue of $3.39 billion during the quarter, compared to analyst estimates of $3.29 billion. During the same quarter last year, the business posted $0.01 earnings per share. The firm’s revenue was up 3.4% on a year-over-year basis. As a group, equities research analysts anticipate that GAP will post 1.74 EPS for the current fiscal year.

GAP Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 31st. Stockholders of record on Wednesday, July 10th will be given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 2.49%. The ex-dividend date of this dividend is Wednesday, July 10th. GAP’s dividend payout ratio is currently 33.33%.

Analysts Set New Price Targets

A number of equities analysts have weighed in on GPS shares. Telsey Advisory Group upped their price target on shares of GAP from $22.00 to $29.00 and gave the stock a “market perform” rating in a research report on Friday, May 31st. Citigroup raised shares of GAP from a “neutral” rating to a “buy” rating and upped their target price for the stock from $21.00 to $28.00 in a report on Tuesday, May 7th. Robert W. Baird raised their price target on GAP from $23.00 to $28.00 and gave the company a “neutral” rating in a report on Friday, May 31st. Cowen boosted their price objective on GAP from $19.00 to $21.00 and gave the company a “market perform” rating in a research report on Friday, March 22nd. Finally, Wells Fargo & Company increased their target price on GAP from $24.00 to $25.00 and gave the stock an “overweight” rating in a research report on Friday, March 22nd. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and nine have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, GAP currently has a consensus rating of “Hold” and a consensus target price of $25.98.

Insiders Place Their Bets

In other news, Director Tracy Gardner sold 2,934 shares of the company’s stock in a transaction dated Monday, July 1st. The shares were sold at an average price of $23.48, for a total transaction of $68,890.32. Following the completion of the sale, the director now owns 51,901 shares of the company’s stock, valued at approximately $1,218,635.48. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, Director Tracy Gardner sold 2,934 shares of the firm’s stock in a transaction on Monday, July 1st. The stock was sold at an average price of $23.48, for a total value of $68,890.32. Following the transaction, the director now directly owns 51,901 shares of the company’s stock, valued at approximately $1,218,635.48. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Katrina O’connell sold 20,000 shares of the business’s stock in a transaction dated Friday, May 31st. The shares were sold at an average price of $29.01, for a total value of $580,200.00. The disclosure for this sale can be found here. Over the last three months, insiders have sold 23,132 shares of company stock valued at $654,003. Insiders own 30.81% of the company’s stock.

Hedge Funds Weigh In On GAP

Several hedge funds have recently added to or reduced their stakes in GPS. GAMMA Investing LLC boosted its position in shares of GAP by 25.8% during the second quarter. GAMMA Investing LLC now owns 2,157 shares of the apparel retailer’s stock valued at $52,000 after buying an additional 443 shares during the period. Plato Investment Management Ltd lifted its stake in shares of GAP by 37.2% during the 1st quarter. Plato Investment Management Ltd now owns 1,965 shares of the apparel retailer’s stock worth $54,000 after acquiring an additional 533 shares during the last quarter. New York State Teachers Retirement System boosted its holdings in GAP by 1.2% during the 4th quarter. New York State Teachers Retirement System now owns 263,675 shares of the apparel retailer’s stock valued at $5,513,000 after acquiring an additional 3,109 shares during the period. BI Asset Management Fondsmaeglerselskab A S bought a new position in GAP in the 4th quarter valued at $73,000. Finally, Nisa Investment Advisors LLC raised its holdings in shares of GAP by 11.3% in the 4th quarter. Nisa Investment Advisors LLC now owns 41,265 shares of the apparel retailer’s stock valued at $863,000 after purchasing an additional 4,200 shares in the last quarter. 58.81% of the stock is currently owned by institutional investors.

About GAP

The Gap, Inc operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include adult apparel and accessories; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls.