The Gap, Inc. (NYSE:GAP) Receives Consensus Rating of “Moderate Buy” from Analysts

The Gap, Inc. (NYSE:GAP) has earned a consensus recommendation of “Moderate Buy” from the fifteen analysts that are currently covering the stock, MarketBeat Ratings reports. Seven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $28.47.

A number of research firms have recently weighed in on GAP. Wells Fargo & Company downgraded GAP from an “overweight” rating to an “equal weight” rating and cut their target price for the company from $30.00 to $24.00 in a research report on Wednesday, April 30th. Morgan Stanley decreased their target price on GAP from $30.00 to $27.00 and set an “overweight” rating for the company in a research note on Tuesday, May 6th. Citigroup dropped their target price on GAP from $33.00 to $30.00 and set a “buy” rating on the stock in a report on Friday, May 30th. Robert W. Baird cut their price objective on GAP from $31.00 to $29.00 and set a “neutral” rating on the stock in a research report on Friday, March 7th. Finally, Barclays boosted their target price on GAP from $26.00 to $33.00 and gave the company an “overweight” rating in a research note on Tuesday, May 27th.

Insider Activity at GAP

In related news, Director Elisabeth B. Donohue sold 3,539 shares of the firm’s stock in a transaction that occurred on Wednesday, March 12th. The stock was sold at an average price of $21.04, for a total transaction of $74,460.56. Following the completion of the transaction, the director now owns 4,000 shares of the company’s stock, valued at $84,160. This trade represents a 46.94% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Mark Breitbard sold 16,055 shares of the firm’s stock in a transaction on Friday, March 14th. The stock was sold at an average price of $20.43, for a total value of $328,003.65. Following the completion of the transaction, the chief executive officer now owns 123,985 shares in the company, valued at approximately $2,533,013.55. This trade represents a 11.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 228,880 shares of company stock worth $4,985,854 in the last ninety days. 30.56% of the stock is owned by company insiders.

Institutional Investors Weigh In On GAP

Several large investors have recently made changes to their positions in the company. Hexagon Capital Partners LLC purchased a new position in shares of GAP during the first quarter valued at approximately $30,000. First Horizon Advisors Inc. purchased a new stake in GAP in the first quarter valued at $75,000. Brooklyn Investment Group purchased a new stake in GAP in the first quarter valued at $80,000. Deseret Mutual Benefit Administrators purchased a new stake in GAP in the first quarter valued at $81,000. Finally, Covestor Ltd purchased a new stake in shares of GAP during the 1st quarter worth about $82,000. 58.81% of the stock is owned by institutional investors.

GAP Stock Performance

Shares of NYSE:GAP opened at $22.24 on Tuesday. The business has a fifty day moving average of $22.52 and a 200-day moving average of $22.92. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.84 and a current ratio of 1.54. The firm has a market cap of $8.38 billion, a PE ratio of 10.30, a price-to-earnings-growth ratio of 0.94 and a beta of 2.20. GAP has a twelve month low of $16.99 and a twelve month high of $29.29.

GAP (NYSE:GAP) last released its quarterly earnings data on Thursday, May 29th. The company reported $0.51 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.07. The business had revenue of $3.46 billion for the quarter, compared to analysts’ expectations of $3.41 billion. GAP had a return on equity of 29.03% and a net margin of 5.40%. GAP’s revenue for the quarter was up 2.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.41 EPS. On average, equities research analysts predict that GAP will post 2.02 EPS for the current fiscal year.

GAP Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 30th. Stockholders of record on Wednesday, July 9th will be issued a $0.165 dividend. This represents a $0.66 dividend on an annualized basis and a dividend yield of 2.97%. The ex-dividend date is Wednesday, July 9th. GAP’s payout ratio is currently 28.57%.

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.