GAP Target of Unusually Large Options Trading (NYSE:GAP)

Key Points

• Unusual options activity: Investors purchased 14,111 GAP call options Wednesday, 68% above the average call volume of 8,378.
• Analyst outlook remains moderately positive: GAP has a consensus “Moderate Buy” rating and an average price target of $26.29, although several firms recently lowered targets or ratings.
• Shares rose 6.4% to $21.44 amid heavy trading, while institutional investors own 58.81% of the stock. GAP also announced a quarterly dividend of $0.175 per share, representing a 3.3% annualized yield.

The Gap, Inc. (NYSE:GAP - Get Free Report) was the target of some unusual options trading activity on Wednesday. Investors acquired 14,111 call options on the stock. This represents an increase of 68% compared to the average volume of 8,378 call options.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on GAP. TD Cowen cut their price target on GAP from $26.00 to $23.00 and set a "buy" rating on the stock in a research note on Tuesday, August 18th. Evercore set a $20.00 price objective on GAP and gave the stock an "in-line" rating in a research note on Friday, May 29th. BTIG Research set a $26.00 target price on GAP in a research note on Thursday, July 30th. Jefferies Financial Group cut GAP from a "buy" rating to a "hold" rating and reduced their target price for the stock from $29.00 to $23.00 in a report on Wednesday, August 12th. Finally, Weiss Ratings lowered shares of GAP from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, July 28th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and eleven have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $26.29.

Institutional Investors Weigh In On GAP

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of GAP in the 2nd quarter valued at about $428,824,000. California State Teachers Retirement System boosted its position in GAP by 1,732.5% during the second quarter. California State Teachers Retirement System now owns 5,116,415 shares of the company's stock valued at $95,575,000 after purchasing an additional 4,837,214 shares during the last quarter. Ameriprise Financial Inc. grew its stake in GAP by 4.1% in the third quarter. Ameriprise Financial Inc. now owns 4,588,800 shares of the company's stock valued at $98,154,000 after purchasing an additional 180,991 shares in the last quarter. Geode Capital Management LLC increased its position in shares of GAP by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 4,291,846 shares of the company's stock worth $110,750,000 after purchasing an additional 14,141 shares during the last quarter. Finally, LSV Asset Management raised its stake in shares of GAP by 3.6% during the 4th quarter. LSV Asset Management now owns 3,462,702 shares of the company's stock worth $88,645,000 after purchasing an additional 121,001 shares in the last quarter. 58.81% of the stock is currently owned by institutional investors and hedge funds.

GAP Stock Up 6.4%

GAP stock traded up $1.29 during mid-day trading on Wednesday, hitting $21.44. 8,221,220 shares of the company were exchanged, compared to its average volume of 7,648,274. The firm has a market cap of $7.72 billion, a P/E ratio of 8.44, a P/E/G ratio of 1.21 and a beta of 2.05. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.08 and a current ratio of 1.81. GAP has a 1-year low of $18.11 and a 1-year high of $29.36. The firm's 50 day simple moving average is $20.01 and its 200 day simple moving average is $22.98.

GAP (NYSE:GAP - Get Free Report) last released its earnings results on Thursday, May 28th. The company reported $0.38 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.01). The firm had revenue of $3.50 billion during the quarter, compared to the consensus estimate of $3.52 billion. GAP had a net margin of 6.25% and a return on equity of 21.13%. The company's revenue was up 1.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.51 EPS. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, sell-side analysts predict that GAP will post 2.33 EPS for the current fiscal year.

GAP Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 7th will be issued a dividend of $0.175 per share. The ex-dividend date is Wednesday, October 7th. This represents a $0.70 annualized dividend and a yield of 3.3%. GAP's dividend payout ratio is presently 27.56%.

About GAP

Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand's distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world's largest apparel companies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source