GAP (NYSE:GAP) Shares Gap Down After Analyst Downgrade

The Gap, Inc. (NYSE:GAP - Get Free Report) shares gapped down before the market opened on Friday after Citigroup lowered their price target on the stock from $33.00 to $30.00. The stock had previously closed at $27.95, but opened at $22.87. Citigroup currently has a buy rating on the stock. GAP shares last traded at $22.15, with a volume of 8,992,402 shares traded.

Several other analysts have also recently weighed in on the stock. Morgan Stanley cut their price target on shares of GAP from $30.00 to $27.00 and set an "overweight" rating on the stock in a report on Tuesday, May 6th. The Goldman Sachs Group cut their price objective on GAP from $34.00 to $25.00 and set a "buy" rating on the stock in a research report on Tuesday, April 22nd. UBS Group decreased their target price on GAP from $29.00 to $27.00 and set a "neutral" rating for the company in a research report on Friday. JPMorgan Chase & Co. raised their target price on GAP from $25.00 to $29.00 and gave the company an "overweight" rating in a research note on Monday, May 19th. Finally, Barclays upped their price target on GAP from $26.00 to $33.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 27th. Seven research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company's stock. Based on data from MarketBeat, GAP has a consensus rating of "Moderate Buy" and a consensus target price of $28.47.

Insider Activity at GAP

In other GAP news, CEO Mark Breitbard sold 3,393 shares of the company's stock in a transaction dated Tuesday, March 18th. The shares were sold at an average price of $19.58, for a total transaction of $66,434.94. Following the transaction, the chief executive officer now owns 133,341 shares in the company, valued at approximately $2,610,816.78. This represents a 2.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Julie Gruber sold 1,537 shares of the firm's stock in a transaction dated Tuesday, March 18th. The shares were sold at an average price of $19.59, for a total transaction of $30,109.83. Following the sale, the insider now directly owns 37,395 shares in the company, valued at approximately $732,568.05. The trade was a 3.95% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 228,880 shares of company stock valued at $4,985,854. 31.00% of the stock is owned by insiders.

Hedge Funds Weigh In On GAP

Several hedge funds and other institutional investors have recently modified their holdings of the company. Hexagon Capital Partners LLC purchased a new stake in shares of GAP during the 1st quarter valued at about $30,000. First Horizon Advisors Inc. purchased a new position in shares of GAP during the 1st quarter worth $75,000. Brooklyn Investment Group purchased a new position in shares of GAP during the 1st quarter worth $80,000. Deseret Mutual Benefit Administrators bought a new stake in shares of GAP during the 1st quarter valued at $81,000. Finally, Covestor Ltd purchased a new stake in shares of GAP in the 1st quarter worth $82,000. 58.81% of the stock is owned by institutional investors.

GAP Trading Down 19.8%

The company has a market capitalization of $8.44 billion, a P/E ratio of 10.38, a PEG ratio of 0.94 and a beta of 2.24. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.84 and a current ratio of 1.54. The stock has a fifty day moving average of $22.44 and a 200 day moving average of $22.92.

GAP (NYSE:GAP - Get Free Report) last released its earnings results on Thursday, May 29th. The company reported $0.51 EPS for the quarter, topping analysts' consensus estimates of $0.44 by $0.07. GAP had a net margin of 5.40% and a return on equity of 29.03%. The company had revenue of $3.46 billion for the quarter, compared to analysts' expectations of $3.41 billion. The firm's revenue was up 2.2% compared to the same quarter last year. During the same quarter last year, the business earned $0.41 EPS. As a group, equities research analysts anticipate that The Gap, Inc. will post 2.02 EPS for the current fiscal year.

GAP Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 30th. Investors of record on Wednesday, July 9th will be paid a dividend of $0.165 per share. This represents a $0.66 dividend on an annualized basis and a dividend yield of 2.94%. The ex-dividend date of this dividend is Wednesday, July 9th. GAP's dividend payout ratio (DPR) is 29.86%.

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.