The Gap Inc. (NYSE:GPS) finished Thursday with a subtraction of -$0.12 to close at $9.53, a downside of -1.24 percent. An average of 9,841,960 shares of common stock have been traded in the last five days. There was a fall of -$0.61 in the past week, and it reached a new high 18 times over the past 12 months. The last 20 days have seen an average of 7,069,140 shares traded, while the 50-day average volume stands at 7,508,178.
GPS stock has decreased by -3.93% in the last month. The company shares reached their 1-month lowest point of $9.19 on 07/25/23. With the stock rallying to its 52-week high on 02/03/23, shares of the company touched a low of $7.22 and a high of $15.49 in 52 weeks. It has reached a new high 12 times so far this year and lost -15.51% or -$1.75 in price. In spite of this, the price is down -38.48% from the 52-week high.
Insider Transactions
GPS stock investors should be aware that The Gap Inc. (GPS) stock had its last reported insider trading activity 23 days ago on Aug 02. In this transaction, the insider spent $1,586,541. President & CEO, Old Navy, Barbeito Horacio, disposed of 790 shares at a price of $7.89 on Jun 01. The insider now owns more than $6,232 worth of shares. Prior to that, President & CEO, Gap Brand Breitbard Mark went on to Sale 22,918 shares at $8.78 each on Mar 24. An amount of $201,268 was transacted.
Valuation Metrics
The Gap Inc. (GPS) stock’s beta is 1.94. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.22, the price-to-book (PB) ratio at 1.60, and the price-to-cash flow ratio at 8.37.
Financial Health
The quick ratio of The Gap Inc. for the three months ended April 29 was 0.70, 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 0.84 and a total debt to equity ratio of 0.84 for the quarter ending April 29. The Gap Inc.’s EBITDA margin for the year ending April 29 is 2.84%, while its operating margin for the same period stands at 0.80%. Its gross profit as reported stood at $5.36 billion compared to revenue of $15.62 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 -0.50%.
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 down than the previous quarter. The company posted a net income of -$18.0 million in the quarter, while revenues were shrunk -800.0%. The analyst consensus anticipated The Gap Inc.’s latest quarter earnings to come in at -$0.16 per share, but it turned out to be $0.01, a 106.20% surprise. For the quarter, EBITDA amounted to $128.0 million. Shareholders own equity worth $368.06 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 24 August was 32.35%, suggesting the stock is Neutral, with historical volatility in this time frame at 37.34%.
As of today, GPS’s price is $9.87 -6.02% or -$0.61 from its 5-day moving average. GPS is currently trading -5.83% lower than its 20-day SMA and -5.08% lower than its 100-day SMA. However, the stock’s current price level is -2.26% below the SMA50 and -13.21% below the SMA200.
The stochastic %K and %D were 10.70% and 15.65%, respectively, and the average true range (ATR) was 0.42. With the 14-day stochastic at 10.14% and the average true range at 0.42, the RSI (14) stands at 40.52%. The stock has reached -0.50 on the 9-day MACD Oscillator while the 14-day reading was at -0.66.
Analyst Ratings
Barclays upgraded The Gap Inc. (NYSE: GPS) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as an Equal weight. The consensus rating for The Gap Inc. (GPS) among analysts is Hold. According to current brokerage recommendations, 2 brokerage firms advise that investors sell GPS, while 11 suggest investors hold. There are 3 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 3 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 $6.00 and $18.00, with a median target of $10.00. Taking a look at these predictions, the average price target given by analysts for The Gap Inc. (GPS) stock is $10.59.
