GAP (NYSE:GAP) Shares Down 4.8% – Should You Sell?

The Gap, Inc. (NYSE:GAP)’s stock price traded down 4.8% on Monday . The stock traded as low as $27.53 and last traded at $27.7250. 4,380,722 shares changed hands during mid-day trading, a decline of 41% from the average session volume of 7,456,537 shares. The stock had previously closed at $29.13.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of GAP in a research note on Monday, December 29th. Guggenheim started coverage on GAP in a report on Tuesday, December 9th. They set a “neutral” rating on the stock. Bank of America increased their price target on GAP from $23.00 to $27.00 and gave the company a “neutral” rating in a report on Friday, November 21st. Jefferies Financial Group raised GAP from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $22.00 to $30.00 in a research note on Friday, November 14th. Finally, Wells Fargo & Company set a $30.00 target price on GAP and gave the company an “overweight” rating in a report on Tuesday, December 16th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $30.38.

GAP Price Performance

The stock has a 50-day simple moving average of $26.98 and a 200 day simple moving average of $23.95. The company has a market cap of $10.28 billion, a PE ratio of 13.00, a P/E/G ratio of 3.02 and a beta of 2.32. The company has a quick ratio of 0.97, a current ratio of 1.72 and a debt-to-equity ratio of 0.41.

GAP (NYSE:GAP) last issued its quarterly earnings data on Tuesday, November 25th. The company reported $0.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.58 by $0.04. The firm had revenue of $3.94 billion during the quarter, compared to the consensus estimate of $3.90 billion. GAP had a return on equity of 24.91% and a net margin of 5.57%.The company’s quarterly revenue was up 3.0% on a year-over-year basis. During the same period last year, the company earned $0.72 EPS. Equities analysts expect that The Gap, Inc. will post 2.02 EPS for the current year.

GAP Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, January 28th. Investors of record on Wednesday, January 7th were issued a $0.165 dividend. This represents a $0.66 annualized dividend and a yield of 2.4%. The ex-dividend date was Wednesday, January 7th. GAP’s dividend payout ratio (DPR) is 29.46%.

Insider Buying and Selling

In related news, Director William Sydney Fisher sold 11,140 shares of the firm’s stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $26.81, for a total transaction of $298,663.40. Following the completion of the transaction, the director directly owned 2,753,453 shares in the company, valued at $73,820,074.93. This trade represents a 0.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Robert J. Fisher sold 500,000 shares of GAP stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $27.45, for a total value of $13,725,000.00. Following the completion of the transaction, the director directly owned 2,329,502 shares of the company’s stock, valued at approximately $63,944,829.90. This represents a 17.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,349,044 shares of company stock valued at $36,857,065 over the last quarter. 31.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On GAP

A number of institutional investors and hedge funds have recently made changes to their positions in GAP. Geode Capital Management LLC raised its holdings in GAP by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 4,291,846 shares of the company’s stock valued at $110,750,000 after acquiring an additional 14,141 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in shares of GAP by 22.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 11,192 shares of the company’s stock valued at $287,000 after purchasing an additional 2,069 shares during the last quarter. LSV Asset Management raised its holdings in shares of GAP by 3.6% in the 4th quarter. LSV Asset Management now owns 3,462,702 shares of the company’s stock valued at $88,645,000 after purchasing an additional 121,001 shares in the last quarter. Cullen Frost Bankers Inc. purchased a new stake in shares of GAP during the 4th quarter worth $26,000. Finally, Plato Investment Management Ltd acquired a new position in shares of GAP during the fourth quarter worth $28,000. 58.81% of the stock is owned by institutional investors and hedge funds.

About GAP

Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand’s distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world’s largest apparel companies.