The Gap, Inc. (NYSE:GAP) Receives Average Recommendation of “Moderate Buy” from Brokerages

The Gap, Inc. (NYSE:GAP) has received a consensus rating of “Moderate Buy” from the sixteen ratings firms that are presently covering the stock, Marketbeat.com reports. Eight equities research analysts have rated the stock with a hold recommendation and eight have assigned a buy recommendation to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $27.5714.

Several analysts have weighed in on the company. Robert W. Baird boosted their price objective on GAP from $26.00 to $27.00 and gave the company a “neutral” rating in a research report on Friday, November 21st. Jefferies Financial Group raised GAP from a “hold” rating to a “buy” rating and boosted their price objective for the company from $22.00 to $30.00 in a report on Friday, November 14th. BTIG Research boosted their price objective on GAP from $30.00 to $31.00 and gave the stock a “buy” rating in a research report on Friday, November 21st. UBS Group lifted their target price on shares of GAP from $25.00 to $26.00 and gave the company a “neutral” rating in a report on Friday, November 21st. Finally, Wells Fargo & Company lifted their price target on GAP from $22.00 to $24.00 and gave the stock an “equal weight” rating in a research note on Friday, November 21st.

Insider Buying and Selling at GAP

In other GAP news, insider Julie Gruber sold 62,073 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $27.00, for a total value of $1,675,971.00. Following the completion of the transaction, the insider owned 37,395 shares in the company, valued at $1,009,665. This represents a 62.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director William Sydney Fisher sold 200,000 shares of the stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $23.86, for a total transaction of $4,772,000.00. Following the transaction, the director directly owned 3,253,453 shares in the company, valued at $77,627,388.58. The trade was a 5.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 1,258,137 shares of company stock worth $30,706,585. Company insiders own 30.56% of the company’s stock.

Institutional Investors Weigh In On GAP

Hedge funds have recently added to or reduced their stakes in the stock. Root Financial Partners LLC purchased a new position in shares of GAP in the third quarter worth approximately $27,000. Cornerstone Planning Group LLC bought a new stake in GAP in the third quarter worth $35,000. Brooklyn Investment Group purchased a new stake in shares of GAP during the first quarter valued at approximately $80,000. Covestor Ltd purchased a new position in GAP during the 1st quarter valued at about $82,000. Finally, Plato Investment Management Ltd bought a new position in GAP in the 1st quarter worth $121,000. 58.81% of the stock is currently owned by institutional investors.

GAP Price Performance

Shares of NYSE:GAP opened at $27.50 on Tuesday. The company’s 50-day moving average is $23.05 and its 200 day moving average is $22.57. GAP has a fifty-two week low of $16.99 and a fifty-two week high of $29.29. The company has a market capitalization of $10.23 billion, a P/E ratio of 11.75, a price-to-earnings-growth ratio of 2.70 and a beta of 2.17. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.96 and a current ratio of 1.68.

GAP (NYSE:GAP) last announced its quarterly earnings results on Tuesday, November 25th. The company reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.58 by $0.04. GAP had a net margin of 5.86% and a return on equity of 27.04%. The company had revenue of $3.94 billion for the quarter, compared to analysts’ expectations of $3.90 billion. During the same period in the prior year, the company posted $0.72 EPS. GAP’s revenue was up 3.0% compared to the same quarter last year. On average, equities research analysts forecast that GAP will post 2.02 earnings per share for the current year.

GAP Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 28th. Shareholders of record on Wednesday, January 7th will be issued a $0.165 dividend. This represents a $0.66 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Wednesday, January 7th. GAP’s dividend payout ratio (DPR) is 29.46%.

About GAP

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections.