GAP (NYSE:GAP) Trading Down 4.5% - What's Next?

The Gap, Inc. (NYSE:GAP - Get Free Report) was down 4.5% during mid-day trading on Wednesday . The stock traded as low as $20.96 and last traded at $20.97. Approximately 10,403,796 shares changed hands during mid-day trading, an increase of 36% from the average daily volume of 7,668,482 shares. The stock had previously closed at $21.96.

Analysts Set New Price Targets

Several research analysts have commented on GAP shares. Morgan Stanley cut their price target on shares of GAP from $30.00 to $27.00 and set an "overweight" rating for the company in a report on Tuesday, May 6th. UBS Group dropped their price objective on GAP from $29.00 to $27.00 and set a "neutral" rating for the company in a research note on Friday, May 30th. Citigroup reduced their target price on GAP from $33.00 to $30.00 and set a "buy" rating for the company in a research report on Friday, May 30th. JPMorgan Chase & Co. upped their target price on GAP from $25.00 to $29.00 and gave the stock an "overweight" rating in a research note on Monday, May 19th. Finally, Telsey Advisory Group reiterated a "market perform" rating and set a $26.00 price target on shares of GAP in a research report on Friday, May 30th. Seven research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. According to MarketBeat, GAP presently has an average rating of "Moderate Buy" and a consensus target price of $28.47.

GAP Price Performance

The firm has a market capitalization of $8.26 billion, a P/E ratio of 10.15, a PEG ratio of 0.94 and a beta of 2.20. The business's 50-day simple moving average is $22.52 and its 200 day simple moving average is $22.92. The company has a quick ratio of 0.84, a current ratio of 1.54 and a debt-to-equity ratio of 0.47.

GAP (NYSE:GAP - Get Free Report) last released 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. The company had revenue of $3.46 billion for the quarter, compared to analyst estimates of $3.41 billion. GAP had a net margin of 5.40% and a return on equity of 29.03%. The firm's quarterly revenue was up 2.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.41 EPS. Sell-side analysts forecast that The Gap, Inc. will post 2.02 earnings per share for the current year.

GAP Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 30th. Stockholders of record on Wednesday, July 9th will be issued a $0.165 dividend. The ex-dividend date is Wednesday, July 9th. This represents a $0.66 annualized dividend and a dividend yield of 3.01%. GAP's dividend payout ratio is currently 28.57%.

Insider Activity

In other GAP news, CFO Katrina O'connell sold 80,029 shares of the firm's stock in a transaction on Friday, March 14th. The shares were sold at an average price of $20.35, for a total value of $1,628,590.15. Following the sale, the chief financial officer now owns 8,290 shares of the company's stock, valued at $168,701.50. This trade represents a 90.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Mark Breitbard sold 51,385 shares of the business's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $27.00, for a total transaction of $1,387,395.00. Following the completion of the transaction, the chief executive officer now owns 123,985 shares in the company, valued at $3,347,595. The trade was a 29.30% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 228,880 shares of company stock valued at $4,985,854. Insiders own 30.56% of the company's stock.

Institutional Trading of GAP

Several large investors have recently modified their holdings of the business. Dodge & Cox bought a new position in GAP during the 1st quarter valued at approximately $592,222,000. Ameriprise Financial Inc. bought a new position in shares of GAP during the first quarter valued at approximately $63,674,000. Bank of New York Mellon Corp bought a new position in shares of GAP during the first quarter valued at approximately $56,763,000. LSV Asset Management purchased a new stake in GAP in the first quarter worth $32,655,000. Finally, Rhumbline Advisers bought a new stake in GAP in the first quarter valued at $12,210,000. 58.81% of the stock is owned by 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.