Gap Inc. (NYSE:GPS) finished Wednesday with an addition of $0.09 to close at $10.29, an upside of 0.88 percent. An average of 7,284,480 shares of common stock have been traded in the last five days. There was a gain of $0.47 in the past week, and it reached a new high 26 times over the past 12 months. The last 20 days have seen an average of 7,896,900 shares traded, while the 50-day average volume stands at 7,833,086.
GPS stock has decreased by -1.15% in the last month. The company shares reached their 1-month lowest point of $9.81 on 09/20/23. 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 -8.78% or -$0.99 in price. In spite of this, the price is down -33.57% from the 52-week high.
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Insider Transactions
GPS stock investors should be aware that Gap Inc. (GPS) stock had its last reported insider trading activity 27 days ago on Sep 01. In this transaction, the insider spent $6,357. EVP CFO, O’Connell Katrina, disposed of 24,509 shares at a price of $10.36 on Aug 28. The insider now owns more than $253,957 worth of shares. Prior to that, President & CEO, Old Navy Barbeito Horacio went on to Sale 154,599 shares at $10.26 each on Aug 02. An amount of $1,586,541 was transacted.
Valuation Metrics
Gap Inc. (GPS) has a trailing price-to-earnings (P/E) ratio of 35.37. The stock’s beta is 1.92. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.25, the price-to-book (PB) ratio at 1.68, and the price-to-cash flow ratio at 4.41.
Financial Health
The quick ratio of Gap Inc. for the three months ended July 30 was 0.67, and the current ratio was 1.41, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.24 and a total debt to equity ratio of 2.50 for the quarter ending July 30. 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, Gap Inc.’s return on assets was 0.94%.
Earnings Surprise
For the three-month period that ended July 30, 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 $117.0 million in the quarter, while revenues were grew 141.88%. The analyst consensus anticipated Gap Inc.’s latest quarter earnings to come in at $0.09 per share, but it turned out to be $0.34, a 277.80% surprise. For the quarter, EBITDA amounted to $237.0 million. Shareholders own equity worth $369.88 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Gap Inc. (GPS) price momentum. RSI 9-day as of the close on 27 September was 45.88%, suggesting the stock is Neutral, with historical volatility in this time frame at 62.30%.
As of today, GPS’s price is $10.18 +4.79% or $0.47 from its 5-day moving average. GPS is currently trading -7.30% lower than its 20-day SMA and +24.28% higher than its 100-day SMA. However, the stock’s current price level is +11.24% above the SMA50 and -29.42% below the SMA200.
The stochastic %K and %D were 24.70% and 20.09%, respectively, and the average true range (ATR) was 0.46. With the 14-day stochastic at 27.99% and the average true range at 0.45, the RSI (14) stands at 47.11%. The stock has reached 0.02 on the 9-day MACD Oscillator while the 14-day reading was at -0.28.
Analyst Ratings
Barclays upgraded Gap Inc. (NYSE: GPS) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as an Equal weight.
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 Gap Inc. (GPS) stock is $10.81.
