GAP (NYSE:GAP) Hits New 1-Year High – Should You Buy?

Shares of The Gap, Inc. (NYSE:GAP) hit a new 52-week high during mid-day trading on Friday . The stock traded as high as $29.36 and last traded at $28.3930, with a volume of 2768059 shares trading hands. The stock had previously closed at $28.22.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the company. Telsey Advisory Group upgraded GAP from a “market perform” rating to an “outperform” rating and raised their price objective for the stock from $26.00 to $32.00 in a research note on Wednesday, December 17th. Wall Street Zen raised GAP from a “hold” rating to a “buy” rating in a report on Sunday, December 21st. Weiss Ratings restated a “buy (b-)” rating on shares of GAP in a research report on Monday, December 29th. Citigroup upped their price objective on shares of GAP from $23.00 to $25.00 and gave the stock a “neutral” rating in a research report on Monday, November 24th. Finally, The Goldman Sachs Group increased their price objective on shares of GAP from $29.00 to $32.00 and gave the stock a “buy” rating in a research note on Friday, January 30th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $30.38.

GAP Trading Up 2.0%

The firm has a 50-day moving average of $27.22 and a two-hundred day moving average of $24.48. The firm has a market capitalization of $10.71 billion, a P/E ratio of 12.85, a P/E/G ratio of 2.98 and a beta of 2.32. The company has a current ratio of 1.72, a quick ratio of 0.97 and a debt-to-equity ratio of 0.41.

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

Insider Buying and Selling at GAP

In related news, major shareholder John J. Fisher sold 250,000 shares of the stock in a transaction that occurred on Wednesday, November 26th. The shares were sold at an average price of $27.75, for a total value of $6,937,500.00. Following the completion of the transaction, the insider owned 750,752 shares of the company’s stock, valued at $20,833,368. This represents a 24.98% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Julie Gruber sold 62,073 shares of the business’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $27.00, for a total transaction of $1,675,971.00. Following the sale, the insider directly owned 37,395 shares in the company, valued at approximately $1,009,665. The trade was a 62.40% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,349,044 shares of company stock worth $36,857,065 over the last 90 days. 30.56% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On GAP

Several large investors have recently bought and sold shares of GAP. Public Employees Retirement System of Ohio boosted its stake in shares of GAP by 2.7% during the fourth quarter. Public Employees Retirement System of Ohio now owns 73,812 shares of the company’s stock valued at $1,890,000 after purchasing an additional 1,945 shares in the last quarter. Russell Investments Group Ltd. boosted its position in GAP by 94.8% during the 4th quarter. Russell Investments Group Ltd. now owns 72,239 shares of the company’s stock worth $1,849,000 after buying an additional 35,146 shares during the period. Captrust Financial Advisors grew its holdings in GAP by 34.4% during the 4th quarter. Captrust Financial Advisors now owns 61,792 shares of the company’s stock worth $1,582,000 after acquiring an additional 15,816 shares during the last quarter. Entropy Technologies LP increased its position in GAP by 53.9% in the 4th quarter. Entropy Technologies LP now owns 110,218 shares of the company’s stock valued at $2,822,000 after acquiring an additional 38,588 shares during the period. Finally, Atlas Capital Advisors Inc. acquired a new position in GAP in the 4th quarter valued at approximately $203,000. 58.81% of the stock is currently owned by institutional investors.

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.