Investors Purchase Large Volume of Call Options on GAP (NYSE:GAP)

The Gap, Inc. (NYSE:GAP) saw some unusual options trading on Monday. Investors purchased 31,459 call options on the company. This is an increase of approximately 50% compared to the typical daily volume of 21,003 call options.

GAP Stock Performance

Shares of NYSE:GAP traded down $0.03 during trading on Monday, reaching $22.69. 4,946,310 shares of the company’s stock traded hands, compared to its average volume of 9,130,094. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.71 and a quick ratio of 0.98. GAP has a 12 month low of $16.99 and a 12 month high of $29.29. The company has a 50 day moving average of $23.50 and a 200-day moving average of $22.50. The stock has a market capitalization of $8.55 billion, a P/E ratio of 9.82, a price-to-earnings-growth ratio of 2.46 and a beta of 2.14.

GAP (NYSE:GAP) last posted its earnings results on Thursday, May 29th. The company reported $0.51 EPS for the quarter, topping the consensus estimate of $0.44 by $0.07. The firm had revenue of $3.46 billion during the quarter, compared to analysts’ expectations of $3.41 billion. GAP had a net margin of 5.80% and a return on equity of 27.86%. GAP’s quarterly revenue was up 2.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.41 EPS. On average, equities analysts expect that GAP will post 2.02 EPS for the current year.

GAP Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 30th. Investors of record on Wednesday, July 9th will be paid a dividend of $0.165 per share. This represents a $0.66 annualized dividend and a yield of 2.91%. The ex-dividend date is Wednesday, July 9th. GAP’s dividend payout ratio is presently 28.57%.

Wall Street Analysts Forecast Growth

GAP has been the subject of several research analyst reports. Citigroup decreased their target price on shares of GAP from $33.00 to $30.00 and set a “buy” rating for the company in a research note on Friday, May 30th. The Goldman Sachs Group reduced their price target on shares of GAP from $34.00 to $25.00 and set a “buy” rating for the company in a research report on Tuesday, April 22nd. JPMorgan Chase & Co. raised their price objective on shares of GAP from $25.00 to $29.00 and gave the stock an “overweight” rating in a research note on Monday, May 19th. Wells Fargo & Company cut shares of GAP from an “overweight” rating to an “equal weight” rating and dropped their price objective for the stock from $30.00 to $24.00 in a research note on Wednesday, April 30th. Finally, Jefferies Financial Group restated a “hold” rating and set a $29.00 target price (up previously from $26.00) on shares of GAP in a research report on Wednesday, May 21st. Seven equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. Based on data from MarketBeat.com, GAP has a consensus rating of “Moderate Buy” and an average price target of $28.47.

Insider Transactions at GAP

In other news, CEO Mark Breitbard sold 51,385 shares of the company’s stock in a transaction on Friday, May 16th. The stock was sold at an average price of $27.00, for a total transaction of $1,387,395.00. Following the sale, the chief executive officer owned 123,985 shares of the company’s stock, valued at approximately $3,347,595. This represents a 29.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 31.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On GAP

Hedge funds have recently made changes to their positions in the company. Hexagon Capital Partners LLC acquired a new position in GAP in the 1st quarter valued at $30,000. First Horizon Advisors Inc. bought a new stake in GAP in the 1st quarter valued at $75,000. Brooklyn Investment Group bought a new stake in GAP in the 1st quarter valued at $80,000. Deseret Mutual Benefit Administrators bought a new stake in GAP in the 1st quarter valued at $81,000. Finally, Covestor Ltd bought a new stake in GAP in the 1st quarter valued at $82,000. Hedge funds and other institutional investors own 58.81% of the company’s stock.

GAP Company Profile

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. 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.