GAP (NYSE:GAP) Trading Up 8.9% After Analyst Upgrade

The Gap, Inc. (NYSE:GAP) shares traded up 8.9% during mid-day trading on Tuesday after Citigroup raised their price target on the stock from $23.00 to $25.00. Citigroup currently has a neutral rating on the stock. GAP traded as high as $27.04 and last traded at $26.9590. 4,360,561 shares traded hands during mid-day trading, a decline of 53% from the average session volume of 9,203,354 shares. The stock had previously closed at $24.75.

Other research analysts have also issued reports about the stock. The Goldman Sachs Group increased their price target on shares of GAP from $26.00 to $29.00 and gave the stock a “buy” rating in a research note on Friday. Evercore ISI upped their price objective on shares of GAP from $25.00 to $28.00 and gave the stock an “outperform” rating in a report on Friday. Barclays downgraded shares of GAP from an “overweight” rating to an “equal weight” rating and decreased their target price for the company from $24.00 to $19.00 in a research note on Friday, August 22nd. Jefferies Financial Group raised GAP from a “hold” rating to a “buy” rating and boosted their price target for the stock from $22.00 to $30.00 in a research report on Friday, November 14th. Finally, Wells Fargo & Company upped their price target on GAP from $22.00 to $24.00 and gave the stock an “equal weight” rating in a research note on Friday. Eight investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, GAP presently has an average rating of “Moderate Buy” and an average price target of $27.57.

Insider Buying and Selling at GAP

In related news, Director Robert J. Fisher sold 500,000 shares of the stock in a transaction that occurred on Wednesday, September 24th. The shares were sold at an average price of $22.90, for a total transaction of $11,450,000.00. Following the transaction, the director owned 2,829,502 shares in the company, valued at $64,795,595.80. This represents a 15.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director William Sydney Fisher sold 200,000 shares of the firm’s stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $23.86, for a total transaction of $4,772,000.00. Following the completion of the sale, the director owned 3,253,453 shares in the company, valued at $77,627,388.58. This represents a 5.79% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 943,064 shares of company stock worth $22,011,784 over the last ninety days. 30.56% of the stock is currently owned by insiders.

Hedge Funds Weigh In On GAP

A number of institutional investors and hedge funds have recently modified their holdings of the company. Public Employees Retirement System of Ohio lifted its holdings in GAP by 0.6% in the third quarter. Public Employees Retirement System of Ohio now owns 71,867 shares of the company’s stock valued at $1,537,000 after acquiring an additional 447 shares during the period. Oregon Public Employees Retirement Fund grew its stake in shares of GAP by 1.3% during the 3rd quarter. Oregon Public Employees Retirement Fund now owns 45,799 shares of the company’s stock valued at $980,000 after purchasing an additional 600 shares during the period. Root Financial Partners LLC purchased a new stake in shares of GAP during the 3rd quarter valued at about $27,000. Cornerstone Planning Group LLC bought a new position in shares of GAP in the 3rd quarter worth approximately $35,000. Finally, California State Teachers Retirement System boosted its holdings in shares of GAP by 0.8% in the second quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock worth $4,940,000 after buying an additional 1,703 shares during the last quarter. 58.81% of the stock is currently owned by hedge funds and other institutional investors.

GAP Price Performance

The company has a market capitalization of $10.01 billion, a P/E ratio of 11.54, a price-to-earnings-growth ratio of 2.70 and a beta of 2.17. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.68 and a quick ratio of 0.96. The firm’s 50-day moving average is $22.59 and its 200-day moving average is $22.50.

GAP (NYSE:GAP) last issued its quarterly earnings results on Thursday, November 20th. The company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.58 by $0.04. The business had revenue of $3.94 billion for the quarter, compared to analysts’ expectations of $3.90 billion. GAP had a net margin of 5.86% and a return on equity of 27.04%. The company’s revenue was up 3.0% compared to the same quarter last year. During the same quarter last year, the company posted $0.72 EPS. GAP has set its FY 2025 guidance at EPS. Analysts predict that The Gap, Inc. will post 2.02 EPS for the current fiscal year.

GAP Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 28th. Stockholders of record on Wednesday, January 7th will be given a dividend of $0.165 per share. This represents a $0.66 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Wednesday, January 7th. GAP’s payout ratio is presently 29.46%.

About GAP

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.