GAP (NYSE:GPS) Shares Gap Down After Analyst Downgrade

Gap Inc (NYSE:GPS)’s stock price gapped down before the market opened on Monday after Wedbush lowered their price target on the stock from $18.00 to $15.00. The stock had previously closed at $16.02, but opened at $16.68. Wedbush currently has a neutral rating on the stock. GAP shares last traded at $16.99, with a volume of 532,776 shares changing hands.

Several other brokerages also recently issued reports on GPS. Royal Bank of Canada cut their target price on shares of GAP from $19.00 to $16.00 and set a “sector perform” rating on the stock in a research note on Friday. MKM Partners set a $18.00 target price on shares of GAP and gave the company a “hold” rating in a research note on Friday, September 13th. Wells Fargo & Co reissued a “market perform” rating and set a $16.00 target price (down from $20.00) on shares of GAP in a research note on Friday. Bank of America set a $14.00 target price on shares of GAP and gave the company a “sell” rating in a research note on Friday, August 23rd. Finally, Morgan Stanley set a $15.00 target price on shares of GAP and gave the company a “sell” rating in a research note on Friday, September 13th. Seven equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and two have given a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $19.82.

Institutional investors have recently bought and sold shares of the company. Stephens Inc. AR grew its holdings in shares of GAP by 65.0% during the 2nd quarter. Stephens Inc. AR now owns 64,942 shares of the apparel retailer’s stock valued at $1,167,000 after acquiring an additional 25,581 shares in the last quarter. First Trust Advisors LP boosted its holdings in GAP by 37.4% in the second quarter. First Trust Advisors LP now owns 1,165,242 shares of the apparel retailer’s stock worth $20,939,000 after purchasing an additional 317,473 shares in the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund boosted its holdings in GAP by 16.9% in the second quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 79,708 shares of the apparel retailer’s stock worth $1,432,000 after purchasing an additional 11,500 shares in the last quarter. Bank of Montreal Can boosted its holdings in GAP by 14.6% in the second quarter. Bank of Montreal Can now owns 1,475,280 shares of the apparel retailer’s stock worth $26,510,000 after purchasing an additional 187,536 shares in the last quarter. Finally, Cognios Capital LLC boosted its holdings in GAP by 45.0% in the second quarter. Cognios Capital LLC now owns 121,091 shares of the apparel retailer’s stock worth $2,175,000 after purchasing an additional 37,572 shares in the last quarter. Institutional investors and hedge funds own 59.75% of the company’s stock.

The stock has a market capitalization of $6.74 billion, a P/E ratio of 6.60, a PEG ratio of 0.97 and a beta of 0.71. The stock’s fifty day moving average is $17.06 and its 200-day moving average is $18.75. The company has a debt-to-equity ratio of 1.90, a current ratio of 1.46 and a quick ratio of 0.72.

GAP (NYSE:GPS) last issued its quarterly earnings data on Thursday, August 22nd. The apparel retailer reported $0.63 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.52 by $0.11. The firm had revenue of $4.01 billion during the quarter, compared to analysts’ expectations of $4.02 billion. GAP had a net margin of 5.71% and a return on equity of 24.53%. GAP’s revenue for the quarter was down 2.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.76 earnings per share. On average, research analysts expect that Gap Inc will post 2.06 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 30th. Investors of record on Wednesday, October 9th were issued a $0.243 dividend. The ex-dividend date of this dividend was Tuesday, October 8th. This is a boost from GAP’s previous quarterly dividend of $0.24. This represents a $0.97 dividend on an annualized basis and a yield of 5.69%. GAP’s dividend payout ratio is currently 37.45%.

GAP Company Profile (NYSE:GPS)

The Gap, Inc operates as an apparel retail company worldwide. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Hill City brands. Its products include denim, tees, button-downs, khakis, and other products; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities to women and girls.

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