The Gap Inc. (GPS) Analysis & Forecast for August 2020

The Gap Inc. (NYSE: GPS) is -0.79% lower on its value in year-to-date trading and has touched a low of $5.26 and a high of $19.86 in the current 52-week trading range. The GPS stock was last observed hovering at around $17.38 in the last trading session, with the day’s gains setting it 0.16% off its average median price target of $16.00 for the next 12 months. It is also 37.36% off the consensus price target high of $28.00 offered by 24 analysts, but current levels are -192.33% lower than the price target low of $6.00 for the same period.

Currently trading at $17.54, the stock is 17.90% and 32.25% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 20.16 million and changing 0.92% at the moment leaves the stock 33.61% off its SMA200. GPS registered 10.25% gain for a year compared to 6-month loss of 25.02%. The firm has a 50-day simple moving average (SMA 50) of $14.09 and a 200-day simple moving average (SMA200) of $11.25.

The stock witnessed a 28.69% gain in the last 1 month and extending the period to 3 months gives it a 77.35%, and is 21.55% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 5.71% over the week and 4.66% over the month.

The Gap Inc. (GPS) has around 129000 employees, a market worth around $6.49B and $14.05B in sales. Fwd P/E is 16.00. Profit margin for the company is 2.50%. Distance from 52-week low is 233.46% and -11.68% from its 52-week high. The company has generated returns on investments over the last 12 months (9.40%).

The Gap Inc. (GPS) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for The Gap Inc. (GPS) is a “Hold”. 24 analysts offering their recommendations for the stock have an average rating of 3.10, where 16 rate it as a Hold and 1 think it is a “Overweight”. 3 of the analysts rate the stock as a “Buy”. 3 analysts have rated the stock as a Sell or Underperform.

The Gap Inc. is expected to release its quarterly report on 11/19/2020 and quarterly earnings per share for the current quarter are estimated at $0.25 with sales reaching $3.71B over the same period.The EPS is expected to shrink by -62.30% this year, but quarterly earnings will post -18.10% year-over-year. Quarterly sales are estimated to shrink -7.30% in year-over-year returns.

The Gap Inc. (GPS) Top Institutional Holders

612 institutions hold shares in The Gap Inc. (GPS), with 165.6M shares held by insiders accounting for 44.28% while institutional investors hold 114.03% of the company’s shares. The shares outstanding are 372.00M, and float is at 207.92M with Short Float at 16.77%. Institutions hold 63.54% of the Float.

The top institutional shareholder in the company is Dodge & Cox Inc with over 28.52 million shares valued at $359.98 million. The investor’s holdings represent 7.64% of the GPS Shares outstanding. As of Jun 29, 2020, the second largest holder is Vanguard Group, Inc. (The) with 27.66 million shares valued at $349.1 million to account for 7.41% of the shares outstanding. The other top investors are Blackrock Inc. which holds 14.31 million shares representing 3.83% and valued at over $180.54 million, while Parnassus Investments /ca holds 2.81% of the shares totaling 10.5 million with a market value of $132.51 million.

The Gap Inc. (GPS) Insider Activity

A total of 48 insider transactions have happened at The Gap Inc. (GPS) in the last six months, with sales accounting for 16 and purchases happening 32 times. The most recent transaction is an insider sale by Gruber Julie, the company’s Chief Legal&Compliance Officer. SEC filings show that Gruber Julie sold 9,535 shares of the company’s common stock on Aug 25 at a price of $16.21 per share for a total of $0.15 million. Following the sale, the insider now owns 2435.0 shares.

The Gap Inc. disclosed in a document filed with the SEC on Aug 11 that Gruber Julie (Chief Legal&Compliance Officer) sold a total of 29,109 shares of the company’s common stock. The trade occurred on Aug 11 and was made at $14.98 per share for $0.44 million. Following the transaction, the insider now directly holds 11970.0 shares of the GPS stock.

Still, SEC filings show that on Jun 09, Strain John (Chief Digital & Tech Officer) acquired 5,500 shares at an average price of $12.84 for $70605.0. The insider now directly holds 7,005 shares of The Gap Inc. (GPS).

The Gap Inc. (GPS): Who are the competitors?

The company’s main competitors (and peers) include Tilly’s Inc. (TLYS) that is trading -35.15% down over the past 12 months. Abercrombie & Fitch Co. (ANF) is -14.81% down on the 1-year trading charts. Short interest in the company’s stock has risen 7.14% from the last report on Jul 14, 2020 to stand at a total of 32.38 million short shares sold with a short interest ratio of 3.33.