Several analysts have recently updated their ratings and price targets for GAP (NYSE: GPS):

  • 8/27/2018 – GAP was upgraded by analysts at Citigroup Inc from a “sell” rating to a “neutral” rating. They now have a $28.00 price target on the stock. They noted that the move was a valuation call. They noted that the move was a valuation call.
  • 8/25/2018 – GAP was given a new $39.00 price target on by analysts at Barclays PLC. They now have a “buy” rating on the stock.
  • 8/24/2018 – GAP had its price target lowered by analysts at JPMorgan Chase & Co. from $32.00 to $30.00. They now have a “neutral” rating on the stock.
  • 8/24/2018 – GAP had its price target lowered by analysts at B. Riley from $35.00 to $33.00. They now have a “neutral” rating on the stock.
  • 8/24/2018 – GAP had its “hold” rating reaffirmed by analysts at Guggenheim. They wrote, “We’re encouraged by Gap’s continued push into Value (Old Navy) and Active (Athleta). Despite this, we remain NEUTRAL due to Gap brand results remaining soft, GPS beginning to cycle difficult compares in 2H18, and the company’s significant mall exposure. Net sales increased 8% to $4.1bn (excluding the $139mn relating to the adoption of the new revenue recognition standard, net sales increased 4%) including a +2% comp (+3% two-year stacked; flat QoQ). We are encouraged by the seventh straight quarter of positive comps, driven by a positive result at the continuation of positive comps at Banana Republic. Athleta also continues to perform well, with bottoms (~50% of the assortment) driving a +HT% comp in the quarter. Digital momentum continued, and the company remains on track to generate ~$3.5bn in online sales in FY18.””
  • 8/21/2018 – GAP was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Gap has outperformed the industry in the past month. Notably, its growth strategy focused on growing the Old Navy and Athleta brands looks promising. Moreover, the company’s efforts to boost digital and mobile offerings, alongside improving product acceptance bode well. The company has an impressive surprise history as it delivered earnings beat in four of the last five quarters. Also, it marked sixth straight positive sales surprise in first-quarter fiscal 2018. Further, comps improved for the sixth straight quarter due to continued strength at Old Navy and growth at Banana Republic. However, the company is witnessing softness across its namesake brand due to operational issues related to timing of inventory, breadth of the product assortment and shortage of gaps in certain categories. These factors are likely to continue hurting the brand’s comps in the fiscal second quarter.”
  • 8/10/2018 – GAP is now covered by analysts at Wedbush. They set a “neutral” rating and a $32.00 price target on the stock.
  • 7/31/2018 – GAP was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $33.00 price target on the stock. According to Zacks, “Gap has outperformed the industry in the past year. Notably, its growth strategy focused on growing the Old Navy and Athleta brands looks promising. Moreover, the company’s efforts to boost digital and mobile offerings, alongside improving product acceptance bode well. The company has an impressive surprise history as it delivered earnings beat in four of the last five quarters. Also, it marked sixth straight positive sales surprise in first-quarter fiscal 2018. Further, comps improved for the sixth straight quarter due to continued strength at Old Navy and growth at Banana Republic. However, the company is witnessing softness across its namesake brand due to operational issues related to timing of inventory, breadth of the product assortment and shortage of gaps in certain categories. These factors are likely to continue hurting the brand’s comps in the second quarter. Of late, estimates have been stable.”
  • 7/25/2018 – GAP was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Gap’s growth strategy focused on growing its Old Navy and Athleta brands looks promising. Moreover, the company’s efforts to boost digital and mobile offerings, alongside improving product acceptance bode well. Notably, the company has an impressive surprise history as it delivered earnings beat in four of the last five quarters. Also, it marked sixth straight positive sales surprise in first-quarter fiscal 2018. Further, comps improved for the sixth straight quarter due to continued strength at Old Navy and growth at Banana Republic. However, the stock has underperformed the industry in the past year. Further, the company is witnessing softness across its namesake brand due to operational issues related to timing of inventory, breadth of the product assortment and shortage of gaps in certain categories. These factors are likely to continue hurting the brand’s comps in the second quarter. Of late, estimates have been stable.”

Shares of GPS traded down $0.02 on Friday, hitting $30.13. 131,070 shares of the stock traded hands, compared to its average volume of 4,953,502. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.02 and a current ratio of 1.96. The company has a market capitalization of $11.90 billion, a price-to-earnings ratio of 14.15, a PEG ratio of 1.32 and a beta of 0.71. Gap Inc has a 1 year low of $22.98 and a 1 year high of $35.68.

GAP (NYSE:GPS) last announced its quarterly earnings data on Thursday, August 23rd. The apparel retailer reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.04. The business had revenue of $4.09 billion for the quarter, compared to the consensus estimate of $4.02 billion. GAP had a net margin of 5.43% and a return on equity of 29.25%. The company’s quarterly revenue was up 7.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.58 earnings per share. equities analysts expect that Gap Inc will post 2.59 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 31st. Investors of record on Wednesday, October 10th will be paid a dividend of $0.2425 per share. This represents a $0.97 annualized dividend and a dividend yield of 3.22%. The ex-dividend date is Tuesday, October 9th. GAP’s payout ratio is 45.54%.

In related news, Director William Sydney Fisher sold 1,000,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 19th. The shares were sold at an average price of $32.37, for a total transaction of $32,370,000.00. Following the transaction, the director now owns 10,760,396 shares of the company’s stock, valued at $348,314,018.52. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 27.30% of the company’s stock.

A number of large investors have recently bought and sold shares of the business. BlackRock Inc. raised its stake in GAP by 0.8% during the first quarter. BlackRock Inc. now owns 17,263,705 shares of the apparel retailer’s stock worth $538,626,000 after purchasing an additional 133,362 shares during the period. JPMorgan Chase & Co. raised its stake in GAP by 25.8% during the first quarter. JPMorgan Chase & Co. now owns 12,542,927 shares of the apparel retailer’s stock worth $391,339,000 after purchasing an additional 2,575,906 shares during the period. Wells Fargo & Company MN raised its stake in GAP by 41.9% during the second quarter. Wells Fargo & Company MN now owns 4,137,469 shares of the apparel retailer’s stock worth $134,013,000 after purchasing an additional 1,221,383 shares during the period. Northern Trust Corp raised its stake in GAP by 0.9% during the first quarter. Northern Trust Corp now owns 3,703,323 shares of the apparel retailer’s stock worth $115,543,000 after purchasing an additional 32,088 shares during the period. Finally, Bank of Montreal Can raised its stake in GAP by 5.5% during the second quarter. Bank of Montreal Can now owns 3,075,518 shares of the apparel retailer’s stock worth $99,617,000 after purchasing an additional 160,961 shares during the period. 57.67% of the stock is currently owned by institutional investors.

Gap, Inc operates as a global apparel retail company. It offers apparel, accessories, and personal care products for men, women and children. The company operates through segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Intermix. 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.

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