Gap, Inc. (The) (NYSE:GPS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.

According to Zacks, “Though Gap’s new growth strategy focused on growing its Old Navy and Athleta brands looks promising, results continue to be soft at its namesake and Banana Republic brands. Moreover, going forward it expects SG&A costs to increase at a higher rate than the first half. This mainly stems from increased product, marketing and digital investments for the significant back-to-school selling season. The company expects the rise in costs to hurt its bottom line. Additionally, the company expects currency headwinds to persist in fiscal 2017, which in turn might dent the quarterly results. Nonetheless, Gap’s shares have outpaced the industry in the last three months, driven by its solid focus on enhancing product quality and responsiveness to changing consumer trends. The company has been making constant efforts to boost its digital and mobile offerings, alongside improving product acceptance. Estimates have been going down lately.”

GPS has been the subject of several other reports. Oppenheimer Holdings, Inc. set a $33.00 price objective on Gap, Inc. (The) and gave the company a “buy” rating in a research note on Monday, October 30th. Royal Bank Of Canada set a $26.00 price objective on Gap, Inc. (The) and gave the company a “hold” rating in a research note on Monday, October 30th. KeyCorp reissued a “buy” rating and set a $33.00 price target on shares of Gap, Inc. (The) in a research report on Tuesday, September 26th. BMO Capital Markets set a $23.00 price target on Gap, Inc. (The) and gave the stock a “hold” rating in a research report on Tuesday, August 8th. Finally, Credit Suisse Group raised Gap, Inc. (The) from an “underperform” rating to a “neutral” rating and raised their price target for the stock from $23.00 to $30.00 in a research report on Tuesday, September 19th. Four investment analysts have rated the stock with a sell rating, nineteen have given a hold rating and seven have assigned a buy rating to the stock. Gap, Inc. (The) has an average rating of “Hold” and an average target price of $26.86.

Gap, Inc. (NYSE GPS) traded down $0.51 during midday trading on Tuesday, reaching $26.72. The company had a trading volume of 6,432,300 shares, compared to its average volume of 5,906,863. Gap, Inc. has a 12-month low of $21.02 and a 12-month high of $30.74. The stock has a market cap of $10,678.48, a P/E ratio of 13.28, a P/E/G ratio of 1.65 and a beta of 0.86. The company has a quick ratio of 0.92, a current ratio of 1.77 and a debt-to-equity ratio of 0.42.

Gap, Inc. (The) (NYSE:GPS) last released its quarterly earnings data on Thursday, August 17th. The apparel retailer reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.52 by $0.06. Gap, Inc. (The) had a return on equity of 28.50% and a net margin of 5.42%. The firm had revenue of $3.80 billion during the quarter, compared to the consensus estimate of $3.77 billion. During the same period last year, the business posted $0.60 EPS. Gap, Inc. (The)’s quarterly revenue was down 1.4% on a year-over-year basis. equities research analysts anticipate that Gap, Inc. will post 2.06 earnings per share for the current year.

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In other news, Director William Sydney Fisher sold 666,849 shares of Gap, Inc. (The) stock in a transaction dated Wednesday, September 20th. The stock was sold at an average price of $27.99, for a total transaction of $18,665,103.51. Following the sale, the director now directly owns 12,237,873 shares of the company’s stock, valued at $342,538,065.27. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, EVP Paul Joseph Chapman sold 4,898 shares of Gap, Inc. (The) stock in a transaction dated Tuesday, August 22nd. The stock was sold at an average price of $22.82, for a total value of $111,772.36. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 676,682 shares of company stock worth $18,906,180. Corporate insiders own 27.30% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in GPS. Prudential Financial Inc. increased its position in shares of Gap, Inc. (The) by 202.2% during the second quarter. Prudential Financial Inc. now owns 3,801,842 shares of the apparel retailer’s stock worth $83,603,000 after acquiring an additional 2,543,850 shares during the last quarter. Skandinaviska Enskilda Banken AB publ increased its position in shares of Gap, Inc. (The) by 305.0% during the third quarter. Skandinaviska Enskilda Banken AB publ now owns 2,624,032 shares of the apparel retailer’s stock worth $77,488,000 after acquiring an additional 1,976,200 shares during the last quarter. Bank of New York Mellon Corp increased its position in shares of Gap, Inc. (The) by 10.6% during the third quarter. Bank of New York Mellon Corp now owns 10,710,283 shares of the apparel retailer’s stock worth $316,275,000 after acquiring an additional 1,030,160 shares during the last quarter. APG Asset Management N.V. increased its position in shares of Gap, Inc. (The) by 27.7% during the third quarter. APG Asset Management N.V. now owns 4,652,508 shares of the apparel retailer’s stock worth $137,389,000 after acquiring an additional 1,009,400 shares during the last quarter. Finally, Vanguard Group Inc. increased its position in shares of Gap, Inc. (The) by 2.8% during the second quarter. Vanguard Group Inc. now owns 23,743,881 shares of the apparel retailer’s stock worth $522,127,000 after acquiring an additional 643,396 shares during the last quarter. 56.78% of the stock is currently owned by institutional investors and hedge funds.

Gap, Inc. (The) 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.

Analyst Recommendations for Gap, Inc. (The) (NYSE:GPS)

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