Gap Inc.’s September Same Store Sales Numbers Miss Analysts’ Expectations (NYSE:GPS)
Gap’s (NYSE:GPS) same-store sales fell 4% in the month of September. The company missed analysts’ estimates of a 3.6% year-over-year decline in sales. Gap’s shares dropped by 6.3% in the first full-day of trading following the news.
A number of analysts have weighed in on the stock. Jefferies Group reissued a “buy” rating on shares of Gap in a report on Monday, August 29th. Stifel Nicolaus restated a “hold” rating on shares of Gap in a research report on Saturday, June 4th. Vetr upgraded shares of Gap from a “sell” rating to a “hold” rating and set a $25.65 target price on the stock in a research report on Monday, July 25th. Credit Suisse Group AG restated a “sell” rating and set a $21.00 target price on shares of Gap in a research report on Sunday, June 5th. Finally, Canaccord Genuity restated a “buy” rating on shares of Gap in a research report on Wednesday, August 17th. Seven equities research analysts have rated the stock with a sell rating, twenty-six have assigned a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average price target of $24.94.
Shares of Gap (NYSE:GPS) opened at 22.24 on Friday. Gap has a 52-week low of $17.00 and a 52-week high of $30.49. The firm has a market capitalization of $8.86 billion, a price-to-earnings ratio of 12.53 and a beta of 1.17. The company’s 50 day moving average price is $24.21 and its 200 day moving average price is $23.29.
Gap (NYSE:GPS) last released its earnings results on Thursday, August 18th. The apparel retailer reported $0.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.59 by $0.01. Gap had a return on equity of 33.26% and a net margin of 4.60%. The business had revenue of $3.85 billion for the quarter, compared to analyst estimates of $3.79 billion. During the same quarter in the prior year, the company posted $0.64 earnings per share. Gap’s revenue was down 1.2% on a year-over-year basis. Analysts forecast that Gap will post ($0.01) earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 26th. Investors of record on Wednesday, October 5th will be issued a dividend of $0.23 per share. The ex-dividend date of this dividend is Monday, October 3rd. This represents a $0.92 annualized dividend and a yield of 4.14%. Gap’s payout ratio is presently 51.98%.
A number of hedge funds have recently added to or reduced their stakes in GPS. Tobam raised its stake in Gap by 76.2% in the first quarter. Tobam now owns 1,348,416 shares of the apparel retailer’s stock valued at $39,644,000 after buying an additional 583,342 shares during the last quarter. Franklin Resources Inc. raised its stake in Gap by 1.8% in the first quarter. Franklin Resources Inc. now owns 5,238,420 shares of the apparel retailer’s stock valued at $154,010,000 after buying an additional 94,400 shares during the last quarter. FDO Partners LLC bought a new stake in Gap during the first quarter valued at about $330,000. Bancorpsouth Inc. raised its stake in Gap by 7.2% in the first quarter. Bancorpsouth Inc. now owns 50,253 shares of the apparel retailer’s stock valued at $1,478,000 after buying an additional 3,369 shares during the last quarter. Finally, Stratos Wealth Partners LTD. raised its stake in Gap by 1.3% in the first quarter. Stratos Wealth Partners LTD. now owns 13,757 shares of the apparel retailer’s stock valued at $404,000 after buying an additional 175 shares during the last quarter. Institutional investors and hedge funds own 57.42% of the company’s stock.
Gap Company Profile
The Gap, Inc (Gap Inc) is an apparel retail company. The Company offers apparel, accessories and personal care products for men, women and children under the Gap, Banana Republic, Old Navy, Athleta and Intermix brands. Its products are available to customers online through Company-owned Websites and through the use of third-parties that provide logistics and fulfillment services.
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