As of Thursday close, The Gap Inc.’s (NYSE:GPS) stock was up $0.25, moving up 2.21 percent to $11.58. The average number of shares traded per day over the past five days has been 10,738,460 shares. 5 times new highs have been achieved over the past 5 days, with a $2.05 gain in that time frame. In the last twenty days, the average volume was 7,983,410, while in the previous 50 days, it was 7,642,058.
Since last month, GPS stock rose 11.88%. Shares of the company fell to $9.38 on 08/23/23, the lowest level in the past month. A 52-week high of $15.49 was reached on 02/03/23 after having rallying from a 52-week low of $7.22. Since the beginning of this year, GPS’s stock price has risen by 2.66% or $0.30, and marked a new high 12 times. However, the stock has declined by -25.24% since its 52-week high.
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GPS stock investors should be aware that The Gap Inc. (GPS) stock had its last reported insider trading activity 4 days ago on Aug 28. O’Connell Katrina, the EVP CFO of the company, disposed of 24,509 shares for $10.36 on Aug 28. It resulted in a $253,957 divestment by the insider. Barbeito Horacio sold 154,599 shares at an average price of $10.26 on Aug 02. The insider now owns 0 shares following the transaction. On Jun 01, President & CEO, Old Navy Barbeito Horacio sold 790 shares at $7.89 apiece. The transaction was valued at $6,232.
Valuation Metrics
Right now, The Gap Inc. (GPS) has a P/E ratio of about 39.52. The stock’s beta is 1.92. Besides these, the trailing price-to-sales (P/S) ratio of 0.26, the price-to-book (PB) ratio of 1.95.
The latest dividend of $0.15 per share was paid out, remained unchanged from last year’s $0.15.
Financial Health
In the three months ended July 30, The Gap Inc.’s quick ratio stood at 0.70, while its current ratio was 1.50, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending July 30 was 0.84, and the total debt-to-equity ratio was 0.84. On the profitability front, the trailing twelve-month gross margin is 36.30% percent. In the year ended July 30, EBITDA margin amounted to 2.84%, whereas operating margins totaled -0.50%. Based on annual data, GPS earned $5.36 billion in gross profit and brought in $15.62 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -3.20%. Return on equity (ROE) for the past 12 months was -8.70%.
In The Gap Inc.’s quarter-end financial report for July 30, it reported total debt of $1.49 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. GPS’s revenue fell -8.71% to $3.28 billion during the quarter, while net income inched up to $3.55 billion. While analysts expected The Gap Inc. to report $0.09 quarterly earnings, the actual figure was $0.34 per share, beating the consensus estimate by 277.80%. During the quarter, the company generated $237.0 million in EBITDA. The liabilities of The Gap Inc. were 8.59 billion at the end of its most recent quarter ended July 30, and its total debt was $5.65 billion. The value of shareholders’ equity is $369.88 million.
Technical Picture
This quick technical analysis looks at The Gap Inc.’s (GPS) price momentum. With a historical volatility rate of 61.86%, the RSI 9-day stood at 74.68% on 31 August.
With respect to its five-day moving average, the current The Gap Inc. price is up by +21.51% percent or $2.05. At present, GPS shares trade +9.66% above its 20-day simple moving average and +16.03% percent above its 100-day simple moving average. However, the stock is currently trading approximately +26.42% above its SMA50 and -5.70% below its SMA200.
Stochastic coefficient K was 96.55% and Stochastic coefficient D was 87.81%, while ATR was 0.47. Given the Stochastic reading of 95.24% for the 14-day period, the RSI (14) reading has been calculated as 69.70%. As of today, the MACD Oscillator reading stands at 0.93, while the 14-day reading stands at 0.95.
Analyst Ratings
Barclays upgraded its rating on The Gap Inc. (NYSE: GPS) to an Overweight in a note to investors on August 01, 2023. The analysts firm previously had an Equal weight rating on the stock.The Gap Inc. (GPS) has been rated Hold by analysts. According to 2 brokerage firms, GPS is a sell, and 12 firms recommend it is a Hold. There are 3 analysts who say the stock is underweight. A total of 1 analyst rate The Gap Inc. stock as buy, with 3 recommending it as overweight.
With a median target price of $10.00, the current consensus forecast for the stock is $6.00 – $18.00. Based on these forecasts, analysts predict The Gap Inc. (GPS) will achieve an average price target of $10.74.
