GAP (NYSE:GAP) Shares Gap Down - Time to Sell?

The Gap, Inc. (NYSE:GAP - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $22.38, but opened at $19.06. GAP shares last traded at $17.43, with a volume of 4,420,129 shares changing hands.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Robert W. Baird cut their price objective on shares of GAP from $31.00 to $29.00 and set a "neutral" rating on the stock in a research report on Friday, March 7th. JPMorgan Chase & Co. lifted their price objective on shares of GAP from $29.00 to $30.00 and gave the company an "overweight" rating in a research note on Friday, March 7th. UBS Group lowered their target price on shares of GAP from $26.00 to $25.00 and set a "neutral" rating on the stock in a research report on Monday, March 10th. Argus raised GAP from a "hold" rating to a "buy" rating and set a $27.00 price target for the company in a research report on Tuesday, January 21st. Finally, Telsey Advisory Group reissued a "market perform" rating and set a $26.00 price objective on shares of GAP in a report on Friday, March 7th. Five investment analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $29.25.

GAP Price Performance

The firm has a market cap of $6.62 billion, a P/E ratio of 8.12, a price-to-earnings-growth ratio of 0.94 and a beta of 2.15. The stock's 50-day moving average is $21.80 and its 200-day moving average is $22.51. The company has a quick ratio of 0.84, a current ratio of 1.54 and a debt-to-equity ratio of 0.47.

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GAP (NYSE:GAP - Get Free Report) last posted its quarterly earnings data on Thursday, March 6th. The company reported $0.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.18. GAP had a net margin of 5.40% and a return on equity of 29.03%. The company had revenue of $4.15 billion for the quarter, compared to the consensus estimate of $4.07 billion. As a group, equities analysts anticipate that The Gap, Inc. will post 2.02 EPS for the current fiscal year.

GAP Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 30th. Shareholders of record on Wednesday, April 9th will be given a $0.165 dividend. The ex-dividend date is Wednesday, April 9th. This represents a $0.66 dividend on an annualized basis and a dividend yield of 3.74%. This is an increase from GAP's previous quarterly dividend of $0.15. GAP's dividend payout ratio (DPR) is currently 29.86%.

Insider Activity

In related news, CFO Katrina O'connell sold 80,029 shares of the stock in a transaction dated Friday, March 14th. The shares were sold at an average price of $20.35, for a total value of $1,628,590.15. Following the completion of the transaction, the chief financial officer now owns 8,290 shares of the company's stock, valued at $168,701.50. This represents a 90.61 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Sarah Gilligan sold 29,813 shares of GAP stock in a transaction that occurred on Friday, March 14th. The shares were sold at an average price of $20.34, for a total value of $606,396.42. Following the sale, the insider now directly owns 2,634 shares in the company, valued at $53,575.56. The trade was a 91.88 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 177,495 shares of company stock worth $3,598,459. Company insiders own 31.00% of the company's stock.

Institutional Investors Weigh In On GAP

A hedge fund recently bought a new stake in GAP stock. GAMMA Investing LLC bought a new stake in The Gap, Inc. (NYSE:GAP - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 95,610 shares of the company's stock, valued at approximately $1,971,000. 58.81% of the stock is currently owned by hedge funds and other institutional investors.

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.