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

The Gap, Inc. (NYSE:GAP) was the recipient of some unusual options trading on Wednesday. Stock investors bought 14,111 call options on the company. This represents an increase of approximately 68% compared to the average volume of 8,378 call options.

Institutional Investors Weigh In On GAP

Several hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new stake in GAP in the 2nd quarter valued at $428,824,000. California State Teachers Retirement System increased its holdings in shares of GAP by 1,732.5% during the 2nd quarter. California State Teachers Retirement System now owns 5,116,415 shares of the company’s stock worth $95,575,000 after purchasing an additional 4,837,214 shares during the period. Bank of America Corp DE bought a new position in shares of GAP during the 2nd quarter worth about $30,345,000. Ameriprise Financial Inc. raised its position in shares of GAP by 42.7% during the second quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company’s stock valued at $96,134,000 after buying an additional 1,318,322 shares during the last quarter. Finally, Miller Howard Investments Inc. NY raised its position in shares of GAP by 112.2% during the first quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company’s stock valued at $41,237,000 after buying an additional 900,855 shares during the last quarter. 58.81% of the stock is owned by institutional investors.

GAP Trading Up 4.7%

GAP stock opened at $21.09 on Thursday. GAP has a 52 week low of $18.11 and a 52 week high of $29.36. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.08 and a current ratio of 1.81. The firm has a market capitalization of $7.59 billion, a PE ratio of 8.30, a PEG ratio of 1.19 and a beta of 2.05. The business’s 50-day simple moving average is $20.02 and its 200-day simple moving average is $22.93.

GAP (NYSE:GAP) last announced its earnings results on Thursday, May 28th. The company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.01). The business had revenue of $3.50 billion for the quarter, compared to the consensus estimate of $3.52 billion. GAP had a net margin of 6.25% and a return on equity of 21.13%. GAP’s revenue for the quarter was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.51 EPS. Equities research analysts forecast that GAP will post 2.33 earnings per share for the current year.

GAP Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Wednesday, October 7th will be given a $0.175 dividend. This represents a $0.70 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Wednesday, October 7th. GAP’s payout ratio is currently 27.56%.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on GAP shares. Bank of America cut their price target on GAP from $29.00 to $26.00 and set a “neutral” rating for the company in a research note on Friday, May 29th. BTIG Research set a $26.00 price target on GAP in a research note on Thursday, July 30th. Wells Fargo & Company restated an “equal weight” rating and issued a $22.00 price objective (down from $26.00) on shares of GAP in a report on Friday, August 7th. Morgan Stanley reaffirmed an “equal weight” rating and set a $21.00 price objective on shares of GAP in a research report on Monday, July 6th. Finally, Weiss Ratings cut shares of GAP from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, July 28th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and eleven have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $26.29.

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.