GAP (NYSE:GAP) Stock Crosses Above 50-Day Moving Average – Time to Sell?

The Gap, Inc. (NYSE:GAP) crossed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $22.08 and traded as high as $23.03. GAP shares last traded at $22.8970, with a volume of 4,588,682 shares traded.

Analyst Upgrades and Downgrades

A number of research firms recently commented on GAP. BTIG Research increased their target price on GAP from $26.00 to $27.00 and gave the company a “buy” rating in a research note on Friday, August 28th. The Goldman Sachs Group lifted their price target on GAP from $25.00 to $27.00 and gave the stock a “buy” rating in a research note on Monday, August 31st. Wolfe Research assumed coverage on GAP in a report on Wednesday, October 21st. They issued a “peer perform” rating for the company. Needham & Company LLC initiated coverage on GAP in a research report on Friday, October 16th. They set a “hold” rating on the stock. Finally, Weiss Ratings raised GAP from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $27.07.

GAP Stock Performance

The company has a market cap of $7.85 billion, a PE ratio of 6.67, a PEG ratio of 0.96 and a beta of 2.05. The business’s 50-day moving average is $22.13 and its 200 day moving average is $23.15. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.11 and a current ratio of 1.82.

GAP (NYSE:GAP) last announced its quarterly earnings data on Thursday, August 27th. The company reported $0.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.48 by $0.04. GAP had a return on equity of 19.72% and a net margin of 8.14%. The firm had revenue of $3.65 billion for the quarter, compared to analysts’ expectations of $3.69 billion. During the same period last year, the firm earned $0.57 earnings per share. The company’s revenue for the quarter was down 2.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. On average, equities research analysts predict that The Gap, Inc. will post 2.40 EPS for the current fiscal year.

GAP Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 28th. Investors of record on Wednesday, October 7th were paid a $0.1750 dividend. This represents a $0.70 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend was Wednesday, October 7th. GAP’s payout ratio is presently 20.90%.

Insiders Place Their Bets

In other GAP news, insider Julie Gruber sold 27,538 shares of the stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $23.56, for a total transaction of $648,795.28. Following the completion of the sale, the insider owned 30,876 shares of the company’s stock, valued at $727,438.56. This represents a 47.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William Fisher sold 500,000 shares of the firm’s stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $23.89, for a total transaction of $11,945,000.00. Following the completion of the sale, the director directly owned 15,903,198 shares in the company, valued at approximately $379,927,400.22. This trade represents a 3.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,027,538 shares of company stock valued at $24,249,556 over the last quarter. 31.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Global Retirement Partners LLC bought a new position in shares of GAP in the 2nd quarter worth approximately $29,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of GAP during the second quarter valued at approximately $50,000. Quantbot Technologies LP bought a new stake in shares of GAP during the second quarter valued at approximately $73,000. Balance Wealth Partners LLC purchased a new stake in GAP in the third quarter worth $109,000. Finally, Root Financial Partners LLC purchased a new stake in GAP in the third quarter worth $118,000. Hedge funds and other institutional investors own 58.81% of the company’s stock.

GAP Company Profile

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. The Old Navy Global segment offers clothing and accessories for adults and children.