Traders Buy High Volume of GAP Call Options (NYSE:GPS)

The Gap, Inc. (NYSE:GPSGet Free Report) was the target of some unusual options trading on Friday. Stock investors purchased 67,464 call options on the stock. This is an increase of approximately 235% compared to the average volume of 20,152 call options.

Wall Street Analyst Weigh In

GPS has been the subject of a number of recent analyst reports. Robert W. Baird upped their price objective on GAP from $23.00 to $28.00 and gave the company a “neutral” rating in a report on Friday. The Goldman Sachs Group increased their price target on GAP from $24.00 to $25.00 and gave the stock a “buy” rating in a report on Thursday, April 25th. Jefferies Financial Group increased their price target on GAP from $17.00 to $28.00 and gave the stock a “hold” rating in a report on Friday. Wells Fargo & Company increased their price target on GAP from $24.00 to $25.00 and gave the stock an “overweight” rating in a report on Friday, March 22nd. Finally, BMO Capital Markets increased their price target on GAP from $18.00 to $23.00 and gave the stock a “market perform” rating in a report on Friday. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating, seven have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, GAP has a consensus rating of “Moderate Buy” and a consensus target price of $25.51.

Get Our Latest Analysis on GAP

Insider Activity

In other news, insider Julie Gruber sold 24,180 shares of the company’s stock in a transaction on Tuesday, March 12th. The stock was sold at an average price of $23.00, for a total transaction of $556,140.00. Following the transaction, the insider now owns 1,384 shares of the company’s stock, valued at $31,832. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, insider Julie Gruber sold 24,180 shares of the company’s stock in a transaction dated Tuesday, March 12th. The stock was sold at an average price of $23.00, for a total value of $556,140.00. Following the completion of the sale, the insider now owns 1,384 shares in the company, valued at $31,832. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Katrina O’connell sold 45,266 shares of the company’s stock in a transaction dated Thursday, March 14th. The shares were sold at an average price of $22.58, for a total value of $1,022,106.28. Following the completion of the sale, the chief financial officer now owns 5,937 shares of the company’s stock, valued at approximately $134,057.46. The disclosure for this sale can be found here. Insiders have sold 266,723 shares of company stock valued at $6,886,765 over the last 90 days. 30.81% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of GPS. Plato Investment Management Ltd lifted its position in shares of GAP by 37.2% in the first quarter. Plato Investment Management Ltd now owns 1,965 shares of the apparel retailer’s stock valued at $54,000 after buying an additional 533 shares during the last quarter. SVB Wealth LLC acquired a new stake in shares of GAP in the first quarter valued at approximately $207,000. Pinkerton Retirement Specialists LLC lifted its position in shares of GAP by 14.4% in the first quarter. Pinkerton Retirement Specialists LLC now owns 33,597 shares of the apparel retailer’s stock valued at $926,000 after buying an additional 4,240 shares during the last quarter. Central Pacific Bank Trust Division acquired a new stake in shares of GAP in the first quarter valued at approximately $335,000. Finally, New York State Teachers Retirement System lifted its position in shares of GAP by 2.7% in the first quarter. New York State Teachers Retirement System now owns 270,730 shares of the apparel retailer’s stock valued at $7,459,000 after buying an additional 7,055 shares during the last quarter. 58.81% of the stock is owned by institutional investors and hedge funds.

GAP Stock Performance

Shares of NYSE GPS opened at $28.98 on Friday. The stock has a 50 day moving average price of $22.71 and a 200 day moving average price of $21.08. GAP has a 52 week low of $7.79 and a 52 week high of $29.08. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.78 and a current ratio of 1.42. The stock has a market capitalization of $10.82 billion, a PE ratio of 21.63, a price-to-earnings-growth ratio of 1.31 and a beta of 2.34.

GAP (NYSE:GPSGet Free Report) last issued its quarterly earnings results on Thursday, May 30th. The apparel retailer reported $0.41 EPS for the quarter, beating the consensus estimate of $0.14 by $0.27. GAP had a return on equity of 22.56% and a net margin of 3.37%. The firm had revenue of $3.39 billion during the quarter, compared to analysts’ expectations of $3.29 billion. During the same period in the prior year, the firm posted $0.01 earnings per share. The business’s quarterly revenue was up 3.4% compared to the same quarter last year. Analysts predict that GAP will post 1.38 earnings per share for the current fiscal year.

GAP Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 31st. Investors of record on Wednesday, July 10th will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Wednesday, July 10th. This represents a $0.60 annualized dividend and a yield of 2.07%. GAP’s dividend payout ratio (DPR) is presently 44.78%.

GAP Company Profile

(Get Free Report)

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.

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