GAP (NYSE:GAP) Rating Lowered to Hold at Wall Street Zen

Key Points

• GAP has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, indicating a shift in analyst sentiment about the stock's performance.
• Shares of GAP opened at $18.83, with a one-year low of $16.99 and a one-year high of $29.29, suggesting significant volatility in the stock price.
• GAP recently reported better-than-expected earnings per share of $0.51 for the quarter, beating the consensus estimate of $0.44, indicating positive financial performance despite the downgrade.

GAP (NYSE:GAP - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Sunday.

Several other analysts have also recently commented on GAP. Evercore ISI reduced their target price on GAP from $27.00 to $24.00 and set an "outperform" rating on the stock in a report on Wednesday. Morgan Stanley cut their price target on GAP from $30.00 to $27.00 and set an "overweight" rating on the stock in a report on Tuesday, May 6th. Telsey Advisory Group restated a "market perform" rating and set a $26.00 price target on shares of GAP in a report on Friday, May 30th. Citigroup cut their price target on GAP from $33.00 to $30.00 and set a "buy" rating on the stock in a report on Friday, May 30th. Finally, Jefferies Financial Group restated a "hold" rating and set a $29.00 price target (up from $26.00) on shares of GAP in a report on Wednesday, May 21st. Eight equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $27.93.

GAP Stock Performance

Shares of GAP stock opened at $18.83 on Friday. The business's 50 day simple moving average is $21.94 and its 200 day simple moving average is $22.11. GAP has a one year low of $16.99 and a one year high of $29.29. The stock has a market capitalization of $7.09 billion, a PE ratio of 8.15, a PEG ratio of 2.06 and a beta of 2.15. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.71 and a quick ratio of 0.98.

GAP (NYSE:GAP - Get Free Report) last announced its earnings results on Thursday, May 29th. The company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.44 by $0.07. GAP had a return on equity of 27.86% and a net margin of 5.80%. The business had revenue of $3.46 billion for the quarter, compared to analysts' expectations of $3.41 billion. During the same period in the prior year, the business posted $0.41 earnings per share. The firm's revenue was up 2.2% on a year-over-year basis. As a group, research analysts forecast that GAP will post 2.02 earnings per share for the current year.

Insider Buying and Selling at GAP

In other GAP news, CEO Mark Breitbard sold 51,385 shares of the firm's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $27.00, for a total value of $1,387,395.00. Following the transaction, the chief executive officer directly owned 123,985 shares of the company's stock, valued at approximately $3,347,595. This trade represents a 29.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 30.56% of the company's stock.

Institutional Investors Weigh In On GAP

Institutional investors and hedge funds have recently bought and sold shares of the stock. Bank of New York Mellon Corp purchased a new stake in GAP in the 1st quarter valued at $56,763,000. Nisa Investment Advisors LLC purchased a new stake in GAP in the 1st quarter valued at $832,000. New York State Teachers Retirement System purchased a new stake in GAP in the 1st quarter valued at $5,065,000. New Mexico Educational Retirement Board purchased a new stake in GAP in the 1st quarter valued at $892,000. Finally, Handelsbanken Fonder AB purchased a new stake in GAP in the 1st quarter valued at $1,107,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

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.

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