GAP (NYSE:GAP) Shares Down 4.8% – Here’s What Happened

The Gap, Inc. (NYSE:GAP)’s share price fell 4.8% on Monday . The company traded as low as $27.53 and last traded at $27.7250. 4,380,722 shares changed hands during mid-day trading, a decline of 41% from the average session volume of 7,456,537 shares. The stock had previously closed at $29.13.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Wall Street Zen upgraded GAP from a “hold” rating to a “buy” rating in a report on Sunday, December 21st. Argus upgraded shares of GAP to a “strong-buy” rating in a research note on Thursday, January 22nd. Morgan Stanley boosted their price objective on shares of GAP from $30.00 to $31.00 and gave the stock an “overweight” rating in a research report on Friday, November 21st. JPMorgan Chase & Co. upped their target price on shares of GAP from $32.00 to $36.00 and gave the company an “overweight” rating in a report on Friday, November 21st. Finally, Jefferies Financial Group upgraded shares of GAP from a “hold” rating to a “buy” rating and lifted their price target for the stock from $22.00 to $30.00 in a research note on Friday, November 14th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, GAP presently has a consensus rating of “Moderate Buy” and an average price target of $30.38.

GAP Stock Down 5.1%

The company has a debt-to-equity ratio of 0.41, a current ratio of 1.72 and a quick ratio of 0.97. The firm’s 50 day moving average price is $26.98 and its two-hundred day moving average price is $23.95. The firm has a market cap of $10.28 billion, a price-to-earnings ratio of 13.00, a P/E/G ratio of 3.02 and a beta of 2.32.

GAP (NYSE:GAP) last issued its quarterly earnings results on Tuesday, November 25th. The company reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.58 by $0.04. GAP had a return on equity of 24.91% and a net margin of 5.57%.The firm had revenue of $3.94 billion for the quarter, compared to analysts’ expectations of $3.90 billion. During the same quarter in the previous year, the firm posted $0.72 EPS. The firm’s revenue for the quarter was up 3.0% on a year-over-year basis. As a group, sell-side analysts forecast that The Gap, Inc. will post 2.02 earnings per share for the current fiscal year.

GAP Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, January 28th. Investors of record on Wednesday, January 7th were issued a dividend of $0.165 per share. The ex-dividend date of this dividend was Wednesday, January 7th. This represents a $0.66 annualized dividend and a dividend yield of 2.4%. GAP’s dividend payout ratio (DPR) is currently 29.46%.

Insider Buying and Selling

In other GAP news, insider Julie Gruber sold 62,073 shares of the company’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $27.00, for a total transaction of $1,675,971.00. Following the completion of the transaction, the insider owned 37,395 shares in the company, valued at approximately $1,009,665. This represents a 62.40% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director William Sydney Fisher sold 400,000 shares of the firm’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $27.02, for a total transaction of $10,808,000.00. Following the completion of the sale, the director owned 2,853,453 shares of the company’s stock, valued at $77,100,300.06. This trade represents a 12.29% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,349,044 shares of company stock worth $36,857,065 in the last ninety days. Insiders own 31.00% of the company’s stock.

Hedge Funds Weigh In On GAP

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cullen Frost Bankers Inc. purchased a new position in shares of GAP during the 4th quarter worth approximately $26,000. Root Financial Partners LLC acquired a new position in GAP during the third quarter worth $27,000. Plato Investment Management Ltd purchased a new position in GAP in the fourth quarter worth $28,000. V Square Quantitative Management LLC acquired a new stake in GAP in the fourth quarter valued at $31,000. Finally, Cornerstone Planning Group LLC acquired a new stake in GAP in the third quarter valued at $35,000. Institutional investors and hedge funds own 58.81% of the company’s stock.

GAP Company Profile

Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand’s distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world’s largest apparel companies.