GAP Sees Unusually High Options Volume (NYSE:GAP)

Key Points

• The Gap, Inc. (NYSE:GAP) experienced a significant surge in options trading, with 126,972 call options traded on Friday—an increase of 609% from its average daily volume.
• Analysts' ratings for GAP stock are mixed, with Goldman Sachs lowering their price target to $26 while BTIG Research set a target of $30 and a "buy" rating; overall, the stock holds a consensus price target of $25.75.
• The company announced a quarterly dividend of $0.165, resulting in an annualized yield of 3.1%, with the ex-dividend date set for October 8th.

The Gap, Inc. (NYSE:GAP - Get Free Report) saw unusually large options trading on Friday. Traders acquired 126,972 call options on the stock. This is an increase of 609% compared to the average daily volume of 17,896 call options.

Wall Street Analyst Weigh In

Several analysts have issued reports on GAP shares. The Goldman Sachs Group dropped their price target on shares of GAP from $28.00 to $26.00 and set a "buy" rating on the stock in a research report on Tuesday, July 22nd. BTIG Research started coverage on shares of GAP in a research report on Tuesday. They set a "buy" rating and a $30.00 price target on the stock. Evercore ISI upped their price target on shares of GAP from $24.00 to $25.00 and gave the stock an "outperform" rating in a research report on Friday, August 29th. Wells Fargo & Company dropped their price objective on shares of GAP from $24.00 to $22.00 and set an "equal weight" rating on the stock in a research report on Friday, August 29th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of GAP in a research report on Wednesday, October 8th. Seven research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $25.75.

GAP Stock Performance

NYSE:GAP traded up $0.87 during mid-day trading on Friday, reaching $21.52. 6,989,679 shares of the company's stock were exchanged, compared to its average volume of 9,164,791. GAP has a one year low of $16.99 and a one year high of $29.29. The firm has a market capitalization of $7.98 billion, a PE ratio of 9.20, a price-to-earnings-growth ratio of 2.41 and a beta of 2.10. The business's fifty day simple moving average is $21.85 and its two-hundred day simple moving average is $21.88. 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 - Get Free Report) last released its quarterly earnings results on Thursday, August 28th. The company reported $0.57 EPS for the quarter, topping analysts' consensus estimates of $0.55 by $0.02. GAP had a net margin of 5.86% and a return on equity of 27.04%. The business had revenue of $3.73 billion for the quarter, compared to analyst estimates of $3.73 billion. During the same period last year, the firm earned $0.54 earnings per share. GAP's revenue for the quarter was up .1% compared to the same quarter last year. GAP has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Analysts anticipate that GAP will post 2.02 earnings per share for the current fiscal year.

GAP Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 29th. Shareholders of record on Wednesday, October 8th will be issued a $0.165 dividend. This represents a $0.66 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Wednesday, October 8th. GAP's dividend payout ratio (DPR) is currently 28.21%.

Insider Transactions at GAP

In other news, Director William Sydney Fisher sold 243,064 shares of GAP stock in a transaction that occurred on Thursday, September 4th. The shares were sold at an average price of $23.82, for a total value of $5,789,784.48. Following the sale, the director directly owned 3,453,453 shares in the company, valued at $82,261,250.46. This trade represents a 6.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Robert J. Fisher sold 500,000 shares of the business's stock in a transaction on Wednesday, September 24th. The stock was sold at an average price of $22.90, for a total transaction of $11,450,000.00. Following the completion of the sale, the director directly owned 2,829,502 shares in the company, valued at approximately $64,795,595.80. This represents a 15.02% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 943,064 shares of company stock valued at $22,011,784. 30.56% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On GAP

Hedge funds have recently bought and sold shares of the company. Hexagon Capital Partners LLC bought a new position in GAP in the 1st quarter valued at about $30,000. First Horizon Advisors Inc. acquired a new stake in shares of GAP in the 1st quarter valued at approximately $75,000. Brooklyn Investment Group acquired a new stake in shares of GAP in the 1st quarter valued at approximately $80,000. Deseret Mutual Benefit Administrators acquired a new stake in shares of GAP in the 1st quarter valued at approximately $81,000. Finally, Covestor Ltd acquired a new stake in shares of GAP in the 1st quarter valued at approximately $82,000. 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.

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