The Price Target For The Gap Inc. (GPS)?


The Gap Inc. (NYSE:GPS) finished Thursday with a subtraction of -$0.26 to close at $8.86, a downside of -2.85 percent. An average of 6,568,300 shares of common stock have been traded in the last five days. There was a fall of -$0.14 in the past week, and it reached a new high 4 times over the past 12 months. The last 20 days have seen an average of 8,014,405 shares traded, while the 50-day average volume stands at 7,588,718.

GPS stock has decreased by -12.28% in the last month. The company shares reached their 1-month lowest point of $8.79 on 09/01/22. With the stock rallying to its 52-week high on 01/05/22, shares of the company touched a low of $7.79 and a high of $26.12 in 52 weeks. It has reached a new high 3 times so far this year and lost -49.80% or -$8.79 in price. In spite of this, the price is down -66.08% from the 52-week high.

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Insider Transactions

44 days have passed since The Gap Inc. (GPS) last reported insider trading activity. Laughton Mary Beth, who is President & CEO, Athleta, most recently acquired $6,387 shares at $10.07 per share on Aug 10. In this transaction, the insider spent $64,317. President & CEO, Gap Brand, Breitbard Mark, disposed of 16,755 shares at a price of $12.51 on May 10. The insider now owns more than $209,565 worth of shares. Prior to that, President & CEO, Gap Brand Breitbard Mark went on to Sale 7,311 shares at $17.01 each on Dec 21. An amount of $124,360 was transacted.

Valuation Metrics

The Gap Inc. (GPS) stock’s beta is 1.71. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.20, the price-to-book (PB) ratio at 1.41.

Financial Health

The quick ratio of The Gap Inc. for the three months ended April 29 was 0.50, and the current ratio was 1.40, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.80 and a total debt to equity ratio of 0.80 for the quarter ending April 29. Its gross profit as reported stood at $6.64 billion compared to revenue of $16.67 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, The Gap Inc.’s return on assets was -3.00%.

Earnings Surprise

For the three-month period that ended April 29, The Gap Inc. had $1.49 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$49.0 million in the quarter, while revenues were grew 626.53%. The analyst consensus anticipated The Gap Inc.’s latest quarter earnings to come in at -$0.13 per share, but it turned out to be -$0.44, a -238.50% surprise. For the quarter, EBITDA amounted to $106.0 million. Shareholders own equity worth $363.7 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at The Gap Inc. (GPS) price momentum. RSI 9-day as of the close on 22 September was 36.32%, suggesting the stock is Neutral, with historical volatility in this time frame at 46.53%.

As of today, GPS’s price is $9.17 -1.56% or -$0.14 from its 5-day moving average. GPS is currently trading -10.60% lower than its 20-day SMA and -28.66% lower than its 100-day SMA. However, the stock’s current price level is +6.75% above the SMA50 and -48.90% below the SMA200.

The stochastic %K and %D were 17.66% and 27.38%, respectively, and the average true range (ATR) was 0.48. With the 14-day stochastic at 3.95% and the average true range at 0.50, the RSI (14) stands at 40.10%. The stock has reached -0.21 on the 9-day MACD Oscillator while the 14-day reading was at -0.30.

Analyst Ratings

Barclays upgraded The Gap Inc. (NYSE: GPS) to a an Equal weight rating in its most recent analyst report. Previously, the stock was rated as an Underweight.

What is GPS’s price target for the next 12 months?

Analysts predict a range of price targets between $7.00 and $18.00, with a median target of $9.00. Taking a look at these predictions, the average price target given by analysts for The Gap Inc. (GPS) stock is $9.57.


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