Gap Inc (GPS) Given Average Recommendation of “Hold” by Analysts

Gap Inc (NYSE:GPS) has been assigned an average recommendation of “Hold” from the twenty-eight research firms that are currently covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, nineteen have given a hold recommendation and five have issued a buy recommendation on the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $33.77.

Several brokerages have issued reports on GPS. Barclays set a $39.00 target price on GAP and gave the stock a “buy” rating in a research note on Sunday, May 27th. MKM Partners decreased their target price on GAP to $32.00 and set a “neutral” rating for the company in a report on Tuesday, May 29th. Citigroup upgraded GAP from a “sell” rating to a “neutral” rating and set a $28.00 target price for the company in a report on Monday, August 27th. They noted that the move was a valuation call. Credit Suisse Group decreased their price objective on GAP from $35.00 to $33.00 and set a “neutral” rating for the company in a report on Friday, May 25th. Finally, ValuEngine upgraded GAP from a “hold” rating to a “buy” rating in a report on Thursday, May 24th.

Shares of GPS opened at $27.78 on Friday. The company has a market capitalization of $10.91 billion, a price-to-earnings ratio of 13.04, a PEG ratio of 1.22 and a beta of 0.62. The company has a quick ratio of 1.02, a current ratio of 1.96 and a debt-to-equity ratio of 0.37. GAP has a 1 year low of $25.36 and a 1 year high of $35.68.

GAP (NYSE:GPS) last issued its earnings results on Thursday, August 23rd. The apparel retailer reported $0.76 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.72 by $0.04. The business had revenue of $4.09 billion during the quarter, compared to analyst estimates of $4.02 billion. GAP had a return on equity of 29.25% and a net margin of 5.43%. GAP’s revenue for the quarter was up 7.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.58 earnings per share. sell-side analysts anticipate that GAP will post 2.59 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 31st. Stockholders of record on Wednesday, October 10th will be issued a dividend of $0.2425 per share. The ex-dividend date of this dividend is Tuesday, October 9th. This represents a $0.97 annualized dividend and a dividend yield of 3.49%. GAP’s payout ratio is presently 45.54%.

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

Several institutional investors have recently added to or reduced their stakes in GPS. JPMorgan Chase & Co. boosted its position in GAP by 25.8% in 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 last quarter. Point72 Asset Management L.P. boosted its position in GAP by 626.8% in the second quarter. Point72 Asset Management L.P. now owns 2,743,079 shares of the apparel retailer’s stock worth $88,848,000 after purchasing an additional 2,365,680 shares during the last quarter. Miller Howard Investments Inc. NY boosted its position in GAP by 8,187.8% in the second quarter. Miller Howard Investments Inc. NY now owns 1,949,786 shares of the apparel retailer’s stock worth $63,154,000 after purchasing an additional 1,926,260 shares during the last quarter. Marshall Wace LLP purchased a new position in GAP in the second quarter worth about $42,264,000. Finally, Wells Fargo & Company MN boosted its position in GAP by 41.9% in 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 last quarter. 58.04% of the stock is currently owned by institutional investors.

About GAP

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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Analyst Recommendations for GAP (NYSE:GPS)

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