Gap, Inc. (The) (NYSE:GPS) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Monday.
According to Zacks, “Gap’s shares have outpaced the industry in the last three months, driven by its solid focus on enhancing product quality and responsiveness to changing consumer trends. The company has been taking constant efforts to boost digital and mobile offerings, alongside improving product acceptance. Consequently, the company delivered robust third-quarter fiscal 2017 results. While this marked the company’s third successive earnings beat, it also reflected the fourth consecutive quarter of positive sales surprise. Further, comps improved for the fourth straight quarter owing to gains at Old Navy brand, and growth at its namesake brand. The company’s initiatives and solid year-to-date results encouraged management to raise outlook for fiscal 2017. However, currency woes continue to persist, which caused earnings to fall year over year in the third quarter. Also, the company’s Banana Republic brand continues to play spoilsport.”
Several other equities analysts have also commented on GPS. Jefferies Group LLC reiterated a “buy” rating and issued a $39.00 price target (up from $35.00) on shares of Gap, Inc. (The) in a research note on Thursday, September 7th. ValuEngine upgraded shares of Gap, Inc. (The) from a “hold” rating to a “buy” rating in a research note on Thursday, September 7th. Oppenheimer Holdings, Inc. set a $28.00 price target on shares of Gap, Inc. (The) and gave the company a “buy” rating in a research note on Thursday, August 17th. KeyCorp reiterated a “buy” rating and issued a $33.00 price target on shares of Gap, Inc. (The) in a research note on Tuesday, September 26th. Finally, TheStreet lowered shares of Gap, Inc. (The) from a “b” rating to a “c+” rating in a research note on Monday, November 13th. Three equities research analysts have rated the stock with a sell rating, twenty-four have assigned a hold rating and seven have issued a buy rating to the company. Gap, Inc. (The) presently has an average rating of “Hold” and a consensus target price of $27.51.
Gap, Inc. (GPS) traded up $1.92 during mid-day trading on Monday, hitting $29.40. 18,235,500 shares of the company were exchanged, compared to its average volume of 5,984,229. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.73 and a quick ratio of 0.77. Gap, Inc. has a 12-month low of $21.02 and a 12-month high of $30.14. The stock has a market capitalization of $11,530.00, a price-to-earnings ratio of 14.48, a price-to-earnings-growth ratio of 1.77 and a beta of 0.86.
Gap, Inc. (The) (NYSE:GPS) last released its earnings results on Thursday, November 16th. The apparel retailer reported $0.58 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.55 by $0.03. Gap, Inc. (The) had a net margin of 5.57% and a return on equity of 27.47%. The firm had revenue of $3.84 billion for the quarter, compared to analyst estimates of $3.76 billion. During the same period in the prior year, the firm earned $0.60 earnings per share. The business’s quarterly revenue was up 1.1% compared to the same quarter last year. sell-side analysts forecast that Gap, Inc. will post 2.08 earnings per share for the current fiscal year.
In related news, EVP Paul Joseph Chapman sold 4,898 shares of Gap, Inc. (The) stock in a transaction dated Tuesday, August 22nd. The stock was sold at an average price of $22.82, for a total transaction of $111,772.36. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director William Sydney Fisher sold 666,849 shares of Gap, Inc. (The) stock in a transaction dated Wednesday, September 20th. The stock was sold at an average price of $27.99, for a total value of $18,665,103.51. Following the sale, the director now owns 12,237,873 shares of the company’s stock, valued at approximately $342,538,065.27. The disclosure for this sale can be found here. In the last 90 days, insiders sold 676,682 shares of company stock valued at $18,906,180. Company insiders own 27.30% of the company’s stock.
Institutional investors have recently bought and sold shares of the stock. Ffcm LLC increased its position in Gap, Inc. (The) by 198.0% during the 2nd quarter. Ffcm LLC now owns 5,296 shares of the apparel retailer’s stock worth $121,000 after purchasing an additional 3,519 shares in the last quarter. James Investment Research Inc. purchased a new stake in Gap, Inc. (The) during the 2nd quarter worth about $144,000. Howe & Rusling Inc. purchased a new stake in Gap, Inc. (The) during the 3rd quarter worth about $190,000. AE Wealth Management LLC purchased a new stake in Gap, Inc. (The) during the 3rd quarter worth about $223,000. Finally, Paragon Capital Management Ltd purchased a new stake in Gap, Inc. (The) during the 2nd quarter worth about $229,000. Hedge funds and other institutional investors own 57.67% of the company’s stock.
About Gap, Inc. (The)
The Gap, Inc (Gap Inc) is an apparel retail company. The Company offers apparel, accessories and personal care products for men, women and children under the Gap, Banana Republic, Old Navy, Athleta and Intermix brands. Its products are available to customers online through Company-owned Websites and through the use of third-parties that provide logistics and fulfillment services.
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