GAP (NYSE: GPS) recently received a number of ratings updates from brokerages and research firms:

  • 6/4/2018 – GAP was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Gap’s shares lagged the industry in the last three months as it reported earnings miss in first-quarter fiscal 2018, after four straight quarters of beat. Further, the company is witnessing softness across its namesake brand due to operational issues related to timing of inventory, breadth of the product assortment and shortage of gaps in certain categories. These factors are likely to continue hurting the brand’s comps in the fiscal second quarter. Estimates have been going down lately. However, the company’s fiscal first-quarter marked the sixth straight positive sales surprise. Further, comps improved for the sixth straight quarter due to continued strength at Old Navy and growth at Banana Republic. The company’s new growth strategy focused on growing its Old Navy and Athleta brands look promising. Its efforts to boost digital and mobile offerings, alongside improving product acceptance also bode well.”
  • 5/29/2018 – GAP had its price target lowered by analysts at MKM Partners to $32.00. They now have a “neutral” rating on the stock.
  • 5/28/2018 – GAP was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Gap’s shares have outpaced the industry in the past year driven by its solid focus on enhancing product quality and responsiveness to changing consumer trends. The company has been making constant efforts to boost digital and mobile offerings, alongside improving product acceptance. Further, the company’s new growth strategy focused on growing its Old Navy and Athleta brands looks promising. While the company’s first-quarter fiscal 2018 results marked sixth straight positive sales surprise, earnings lagged estimates after four straight quarters of beat. Further, comps improved for the sixth straight quarter due to continued strength at Old Navy brand and growth at Banana Republic brand. Management also reiterated guidance for fiscal 2018. However, the company is witnessing softness across its namesake brand due to operational issues, which are likely to continue in the fiscal second quarter. Estimates have been going down lately.”
  • 5/27/2018 – GAP was given a new $39.00 price target on by analysts at Barclays PLC. They now have a “buy” rating on the stock.
  • 5/25/2018 – GAP had its price target lowered by analysts at Credit Suisse Group from $35.00 to $33.00. They now have a “neutral” rating on the stock.
  • 5/25/2018 – GAP had its price target lowered by analysts at Deutsche Bank AG from $34.00 to $33.00. They now have a “hold” rating on the stock.
  • 5/25/2018 – GAP had its price target lowered by analysts at Deutsche Bank AG from $34.00 to $33.00. They now have a “hold” rating on the stock.
  • 5/25/2018 – GAP had its price target lowered by analysts at SunTrust Banks, Inc. to $29.00. They now have a “hold” rating on the stock.
  • 5/24/2018 – GAP was upgraded by analysts at ValuEngine from a “hold” rating to a “buy” rating.
  • 5/15/2018 – GAP was upgraded by analysts at Telsey Advisory Group from a “market perform” rating to an “outperform” rating. They now have a $39.00 price target on the stock.
  • 5/8/2018 – GAP was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Gap’s shares have underperformed the industry in the past three months. Though the company’s earnings and sales topped estimates in fourth-quarter fiscal 2017, adverse currency movements dented bottom-line growth. Well, currency woes along with stiff industry completion and other macroeconomic headwinds remain threats. Further, the company has been witnessing soft comps across its namesake brand. However, the company’s solid focus on enhancing product quality and responsiveness to changing consumer trends, remain encouraging. The company has also been making constant efforts to boost digital and mobile offerings, alongside improving product acceptance. Further, comps improved for the fifth straight quarter in fourth-quarter fiscal 2017, owing to persistent momentum at Old Navy brand. Nevertheless, the company’s earnings estimates have been witnessing downward revisions ahead of first-quarter fiscal 2018 earnings.”
  • 4/25/2018 – GAP was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Gap’s shares have outpaced the industry in the past year driven by its solid focus on enhancing product quality and responsiveness to changing consumer trends. The company has been making constant efforts to boost digital and mobile offerings, alongside improving product acceptance. Consequently, it delivered robust fourth-quarter fiscal 2017 results. While this marked the company’s fourth straight earnings beat, it also reflected the fourth consecutive quarter of positive sales surprise. Further, comps improved for the fifth straight quarter due to gains at Old Navy brand and growth at Banana Republic brand. Management also provided robust outlook for fiscal 2018, which reflects an increased confidence in its growth strategy and a momentous growth in earnings capacity. However, currency woes continue to persist, which hurt earnings growth by 4 percentage points. Of late, estimates have been witnessing downward revisions.”

Shares of NYSE GPS traded down $0.16 during mid-day trading on Wednesday, reaching $32.77. 30,948 shares of the company traded hands, compared to its average volume of 7,130,643. Gap Inc has a fifty-two week low of $21.02 and a fifty-two week high of $35.68. The company has a debt-to-equity ratio of 0.39, a current ratio of 2.03 and a quick ratio of 1.05. The firm has a market capitalization of $12.69 billion, a PE ratio of 15.38, a P/E/G ratio of 1.58 and a beta of 0.81.

GAP (NYSE:GPS) last posted its quarterly earnings data on Thursday, May 24th. The apparel retailer reported $0.42 EPS for the quarter, missing the Zacks’ consensus estimate of $0.46 by ($0.04). GAP had a net margin of 5.36% and a return on equity of 28.04%. The company had revenue of $3.78 billion for the quarter, compared to analyst estimates of $3.60 billion. During the same quarter in the prior year, the business earned $0.36 EPS. GAP’s revenue was up 10.0% compared to the same quarter last year. sell-side analysts anticipate that Gap Inc will post 2.59 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 1st. Investors of record on Wednesday, July 11th will be paid a dividend of $0.2425 per share. The ex-dividend date is Tuesday, July 10th. This represents a $0.97 dividend on an annualized basis and a dividend yield of 2.96%. GAP’s dividend payout ratio is presently 45.54%.

In related news, VP Dara Bazzano sold 6,860 shares of the firm’s stock in a transaction that occurred on Monday, March 19th. The shares were sold at an average price of $32.32, for a total transaction of $221,715.20. Following the transaction, the vice president now owns 4,859 shares in the company, valued at $157,042.88. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Robert J. Fisher sold 500,000 shares of the firm’s stock in a transaction that occurred on Wednesday, April 4th. The stock was sold at an average price of $31.28, for a total transaction of $15,640,000.00. Following the sale, the director now owns 8,702,097 shares of the company’s stock, valued at $272,201,594.16. The disclosure for this sale can be found here. Insiders have sold 1,085,693 shares of company stock worth $34,454,238 in the last quarter. Company insiders own 30.60% of the company’s stock.

A number of large investors have recently modified their holdings of the stock. Suntrust Banks Inc. boosted its holdings in GAP by 83.3% during the first quarter. Suntrust Banks Inc. now owns 37,506 shares of the apparel retailer’s stock worth $1,169,000 after buying an additional 17,043 shares in the last quarter. Allianz Asset Management GmbH boosted its holdings in GAP by 177.5% during the first quarter. Allianz Asset Management GmbH now owns 300,495 shares of the apparel retailer’s stock worth $9,375,000 after buying an additional 192,212 shares in the last quarter. Principal Financial Group Inc. boosted its holdings in GAP by 34.3% during the first quarter. Principal Financial Group Inc. now owns 557,049 shares of the apparel retailer’s stock worth $17,380,000 after buying an additional 142,335 shares in the last quarter. Gyroscope Capital Management Group LLC boosted its holdings in GAP by 1.5% during the first quarter. Gyroscope Capital Management Group LLC now owns 203,546 shares of the apparel retailer’s stock worth $6,351,000 after buying an additional 3,081 shares in the last quarter. Finally, CIBC World Markets Inc. boosted its holdings in GAP by 203.8% during the first quarter. CIBC World Markets Inc. now owns 52,864 shares of the apparel retailer’s stock worth $1,649,000 after buying an additional 35,461 shares in the last quarter. Hedge funds and other institutional investors own 58.71% of the company’s stock.

The Gap, Inc operates as an apparel retail company worldwide. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, and Intermix brands. Its products include denim, tees, button-downs, khakis, and other products; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities to women and girls.

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