GAP (NYSE:GAP) Shares Down 8.3% – Should You Sell?

The Gap, Inc. (NYSE:GAP) shares traded down 8.3% during trading on Monday . The stock traded as low as $26.84 and last traded at $26.38. 800,083 shares changed hands during mid-day trading, a decline of 89% from the average session volume of 6,992,852 shares. The stock had previously closed at $28.77.

Analysts Set New Price Targets

Several equities analysts have commented on GAP shares. The Goldman Sachs Group raised their target price on shares of GAP from $29.00 to $32.00 and gave the company a “buy” rating in a research note on Friday, January 30th. Citigroup increased their price objective on shares of GAP from $23.00 to $25.00 and gave the company a “neutral” rating in a report on Monday, November 24th. Evercore boosted their target price on GAP from $25.00 to $28.00 and gave the stock an “outperform” rating in a report on Friday, November 21st. Jefferies Financial Group upgraded GAP from a “hold” rating to a “buy” rating and upped their target price for the stock from $22.00 to $30.00 in a research report on Friday, November 14th. Finally, JPMorgan Chase & Co. increased their price target on GAP from $32.00 to $36.00 and gave the company an “overweight” rating in a research note on Friday, November 21st. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, GAP presently has an average rating of “Moderate Buy” and a consensus price target of $30.38.

GAP Trading Down 6.0%

The company has a fifty day simple moving average of $27.22 and a two-hundred day simple moving average of $24.51. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.72 and a quick ratio of 0.97. The company has a market capitalization of $10.06 billion, a P/E ratio of 12.07, a price-to-earnings-growth ratio of 2.98 and a beta of 2.32.

GAP (NYSE:GAP) last released its earnings results on Tuesday, November 25th. The company reported $0.62 EPS for the quarter, beating the consensus estimate of $0.58 by $0.04. The firm had revenue of $3.94 billion during the quarter, compared to analysts’ expectations of $3.90 billion. GAP had a net margin of 5.57% and a return on equity of 24.91%. The business’s quarterly revenue was up 3.0% compared to the same quarter last year. During the same period in the prior year, the company earned $0.72 EPS. On average, analysts forecast that The Gap, Inc. will post 2.02 earnings per share for the current fiscal year.

Insider Activity at GAP

In other news, major shareholder John J. Fisher sold 3,971 shares of GAP stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $27.04, for a total value of $107,375.84. Following the completion of the transaction, the insider owned 746,781 shares in the company, valued at approximately $20,192,958.24. The trade was a 0.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director William Sydney Fisher sold 11,140 shares of the stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $26.81, for a total value of $298,663.40. Following the sale, the director owned 2,753,453 shares in the company, valued at approximately $73,820,074.93. This trade represents a 0.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 1,349,044 shares of company stock valued at $36,857,065. Corporate insiders own 31.00% of the company’s stock.

Hedge Funds Weigh In On GAP

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Public Employees Retirement System of Ohio increased its stake in shares of GAP by 2.7% in the fourth quarter. Public Employees Retirement System of Ohio now owns 73,812 shares of the company’s stock valued at $1,890,000 after buying an additional 1,945 shares in the last quarter. Russell Investments Group Ltd. increased its holdings in shares of GAP by 94.8% in the fourth quarter. Russell Investments Group Ltd. now owns 72,239 shares of the company’s stock valued at $1,849,000 after purchasing an additional 35,146 shares in the last quarter. Captrust Financial Advisors raised its position in GAP by 34.4% in the 4th quarter. Captrust Financial Advisors now owns 61,792 shares of the company’s stock worth $1,582,000 after purchasing an additional 15,816 shares during the last quarter. Entropy Technologies LP raised its position in GAP by 53.9% in the 4th quarter. Entropy Technologies LP now owns 110,218 shares of the company’s stock worth $2,822,000 after purchasing an additional 38,588 shares during the last quarter. Finally, Atlas Capital Advisors Inc. acquired a new position in GAP during the 4th quarter worth $203,000. Institutional investors and hedge funds own 58.81% of the company’s stock.

GAP Company Profile

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.