GAP Sees Unusually Large Options Volume (NYSE:GAP)

The Gap, Inc. (NYSE:GAP - Get Free Report) was the recipient of unusually large options trading on Monday. Stock traders bought 31,459 call options on the company. This represents an increase of approximately 50% compared to the typical daily volume of 21,003 call options.

GAP Stock Performance

Shares of NYSE:GAP traded down $0.08 during trading on Monday, hitting $22.64. 9,058,268 shares of the stock were exchanged, compared to its average volume of 7,814,077. The company has a market capitalization of $8.53 billion, a price-to-earnings ratio of 9.80, a price-to-earnings-growth ratio of 2.46 and a beta of 2.14. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.98 and a current ratio of 1.71. GAP has a 1-year low of $16.99 and a 1-year high of $29.29. The company's fifty day simple moving average is $23.52 and its 200-day simple moving average is $22.49.

GAP (NYSE:GAP - Get Free Report) last posted its quarterly earnings results on Thursday, May 29th. The company reported $0.51 earnings per share for the quarter, topping analysts' consensus estimates of $0.44 by $0.07. GAP had a net margin of 5.80% and a return on equity of 27.86%. The firm had revenue of $3.46 billion for the quarter, compared to the consensus estimate of $3.41 billion. During the same quarter in the previous year, the company earned $0.41 earnings per share. The business's revenue was up 2.2% compared to the same quarter last year. Sell-side analysts expect that GAP will post 2.02 EPS for the current fiscal year.

GAP Announces Dividend

The firm 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 $0.165 dividend. The ex-dividend date of this dividend is Wednesday, July 9th. This represents a $0.66 dividend on an annualized basis and a yield of 2.92%. GAP's payout ratio is currently 28.57%.

Analyst Ratings Changes

GAP has been the subject of several analyst reports. Morgan Stanley reduced their target price on GAP from $30.00 to $27.00 and set an "overweight" rating for the company in a report on Tuesday, May 6th. Barclays upped their price objective on shares of GAP from $26.00 to $33.00 and gave the stock an "overweight" rating in a report on Tuesday, May 27th. JPMorgan Chase & Co. lifted their target price on shares of GAP from $25.00 to $29.00 and gave the stock an "overweight" rating in a report on Monday, May 19th. 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. Finally, Wells Fargo & Company downgraded GAP from an "overweight" rating to an "equal weight" rating and lowered their price target for the company from $30.00 to $24.00 in a research report on Wednesday, April 30th. Seven research analysts have rated the stock with a hold rating and eight have given a buy rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $28.47.

Insider Buying and Selling

In other GAP news, CEO Mark Breitbard sold 51,385 shares of the firm's stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $27.00, for a total transaction of $1,387,395.00. Following the transaction, the chief executive officer directly owned 123,985 shares in the company, valued at $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 available at the SEC website. Corporate insiders own 31.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Hexagon Capital Partners LLC bought a new stake in shares of GAP in the 1st quarter valued at approximately $30,000. First Horizon Advisors Inc. bought a new stake in GAP in the first quarter valued at $75,000. Brooklyn Investment Group acquired a new position in GAP during the first quarter worth $80,000. Deseret Mutual Benefit Administrators bought a new position in shares of GAP during the first quarter valued at $81,000. Finally, Covestor Ltd acquired a new stake in shares of GAP in the 1st quarter valued at $82,000. Institutional investors and hedge funds own 58.81% of the company's stock.

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.