The Gap Inc. (NYSE:GPS) saw a downside of -0.97% to close Monday at $10.26 after subtracting -$0.1 on the day. The 5-day average trading volume is 5,916,620 shares of the company’s common stock. It has gained $10.61 in the past week and touched a new high 2 times within the past 5 days. An average of 6,765,170 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 7,292,230.
GPS’s 1-month performance is 12.38% or $1.13 on its low of $9.19 reached on 07/25/23. The company’s shares have touched a 52-week low of $7.22 and high of $15.49, with the stock’s rally to the 52-week high happening on 02/03/23. YTD, GPS has lost -9.04% or -$1.02 and has reached a new high 12 times. However, the current price is down -33.76% from the 52-week high price.
Insider Transactions
GPS stock investors last saw insider trading activity on Aug 02.Barbeito Horacio (President & CEO, Old Navy) most recently sold 154,599 shares at $10.26 per share on Aug 02. This transaction cost the insider $1,586,541. President & CEO, Old Navy, Barbeito Horacio, sold 790 shares at a price of $7.89 on Jun 01. Then, on Mar 24, President & CEO, Gap Brand Breitbard Mark sold 22,918 shares at a price of $8.78 per share. This transaction amounted to $201,268.
Valuation Metrics
GPS stock has a beta of 1.91. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.24 while the price-to-book (PB) in the most recent quarter is 1.72, with the price to cash flow ratio at 9.01.
The Gap Inc.’s quick ratio for the period ended April 29 was 0.70, with the current ratio over the same period at 1.50. As well, the company’s long term debt to equity for the quarter ending April 29 was 0.84, while the total debt to equity was 0.84. In terms of profitability, the gross margin trailing 12 months is 35.60%. The trailing 12-month EBITDA margin is 2.84% while for the period ending April 29, The Gap Inc.’s operating margin was 0.80%. The firm’s gross profit as reported stood at $5.36 billion against revenue of $15.62 billion.
Earnings Surprise
For the quarterly period ending April 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income shrunk -800.0% to -$18.0 million, while revenue of $185.0 million was 1127.78% off the previous quarter. Analysts expected GPS to announce -$0.16 per share in earnings in its latest quarter, but it posted $0.01, representing a 106.20% surprise. EBITDA for the quarter stood at more than $128.0 million. GPS stock balance sheet for the quarter ending April 29 shows that total liabilities totaled 8.75 billion, with total debt at $5.95 billion. Shareholders hold equity totaling $368.06 million.
Let’s look briefly at The Gap Inc. (GPS) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 21 August was 49.94% to suggest the stock is trending Neutral, with historical volatility in this time period at 23.60%.
The stock’s 5-day moving average is $10.30, reflecting a -2.47% or -$0.26 change from its current price. GPS is currently trading +8.92% above its 20-day SMA, +12.87% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +8.34% and SMA200 by-10.55%.
Stochastic %K and %D was 22.47% and 23.42% and the average true range (ATR) pointed at 0.39. The RSI (14) points at 54.13%, while the 14-day stochastic is at 24.05% with the period’s ATR at 0.40. The stock’s 9-day MACD Oscillator is pointing at -0.15 and -0.19 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for The Gap Inc. (NYSE: GPS), Barclays upgraded it to an Overweight rating. They previously had an Equal weight rating on the stock. Analysts offering their rating for GPS stock have a consensus rating for the stock as Hold. Currently, 2 brokerage advisors rate GPS as a “sell,”, while 11 advise that investors “Hold.” 3 analysts have rated the stock as underweight. 1 rates the stock as overweight while 3 have offered a “buy” rating.
What is GPS’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $6.00 and a high of $18.00, with their median price target at $10.00. Looking at these predictions, the average price target given by analysts is for The Gap Inc. (GPS) stock is $10.59.
