Analysts’ Views On The Gap Inc. (GPS)

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The Gap Inc. (NYSE:GPS) finished Thursday with an addition of $0.11 to close at $11.40, an upside of 0.97 percent. An average of 6,922,480 shares of common stock have been traded in the last five days. There was a fall of -$0.54 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 7,165,720 shares traded, while the 50-day average volume stands at 8,803,998.

GPS stock has decreased by -21.92% in the last month. The company shares reached their 1-month lowest point of $11.19 on 12/28/22. 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 $19.06 in 52 weeks. It has reached a new high 3 times so far this year and lost -35.41% or -$6.25 in price. In spite of this, the price is down -40.19% from the 52-week high.


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Insider Transactions

GPS stock investors should be aware that The Gap Inc. (GPS) stock had its last reported insider trading activity 9 days ago on Dec 21. In this transaction, the insider spent $90,208. EVP CFO, O’Connell Katrina, disposed of 31,294 shares at a price of $14.00 on Nov 18. The insider now owns more than $438,116 worth of shares. Prior to that, President & CEO, Athleta Laughton Mary Beth went on to Sale 11,030 shares at $11.28 each on Oct 31. An amount of $124,402 was transacted.

Valuation Metrics

The Gap Inc. (GPS) has a trailing price-to-earnings (P/E) ratio of 105.56. The stock’s beta is 1.84. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.26, the price-to-book (PB) ratio at 1.62.

Financial Health

The quick ratio of The Gap Inc. for the three months ended July 30 was 0.60, and the current ratio was 1.50, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.71 and a total debt to equity ratio of 0.71 for the quarter ending July 30. 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 0.40%.

Earnings Surprise

For the three-month period that ended July 30, 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 $282.0 million in the quarter, while revenues were grew 153.9%. The analyst consensus anticipated The Gap Inc.’s latest quarter earnings to come in at -$0.05 per share, but it turned out to be $0.08, a 260.00% surprise. For the quarter, EBITDA amounted to $327.0 million. Shareholders own equity worth $365.05 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 29 December was 25.81%, suggesting the stock is oversold, with historical volatility in this time frame at 30.30%.

As of today, GPS’s price is $11.60 -4.52% or -$0.54 from its 5-day moving average. GPS is currently trading -21.60% lower than its 20-day SMA and +11.00% higher than its 100-day SMA. However, the stock’s current price level is +12.09% above the SMA50 and -21.86% below the SMA200.

The stochastic %K and %D were 3.14% and 6.16%, respectively, and the average true range (ATR) was 0.53. With the 14-day stochastic at 6.22% and the average true range at 0.57, the RSI (14) stands at 33.79%. The stock has reached -0.56 on the 9-day MACD Oscillator while the 14-day reading was at -1.20.

Analyst Ratings

Goldman upgraded The Gap Inc. (NYSE: GPS) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for The Gap Inc. (GPS) among analysts is Hold. According to current brokerage recommendations, 4 brokerage firms advise that investors sell GPS, while 12 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 2 others rate it as a “buy”.

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 $12.00. Taking a look at these predictions, the average price target given by analysts for The Gap Inc. (GPS) stock is $12.26.

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