For The Gap Inc. [GPS], Barclays sees a rise to $20. What next?

The Gap Inc. [NYSE: GPS] stock went on an upward path that rose over 13.65% on Thursday, amounting to a one-week price increase of more than 6.50%. The company report on October 21, 2020 that Gap Inc. to Unveil Power Plan 2023 Strategy and Provide Long-Term Financial Targets.

Gap Inc. (NYSE: GPS) tomorrow is hosting a virtual investor meeting to unveil its Power Plan 2023 strategy and provide an economic framework for the company going forward.

During the event, Gap Inc. executives will outline the company’s strategy to drive long-term shareholder value while also providing financial objectives aligned with the Power Plan 2023.

Over the last 12 months, GPS stock rose by 20.44%. The one-year The Gap Inc. stock forecast points to a potential downside of -17.17. The average equity rating for GPS stock is currently 2.90, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $8.12 billion, with 374.00 million shares outstanding and 207.98 million shares in the current float. Compared to the average trading volume of 9.45M shares, GPS stock reached a trading volume of 47739513 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on The Gap Inc. [GPS]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GPS shares is $18.05 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GPS stock is a recommendation set at 2.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Barclays have made an estimate for The Gap Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on October 07, 2020. The new note on the price target was released on August 28, 2020, representing the official price target for The Gap Inc. stock. Previously, the target price had yet another raise from $10 to $17, while Telsey Advisory Group kept a Market Perform rating on GPS stock. On August 25, 2020, analysts increased their price target for GPS shares from 12 to 24.

The Average True Range (ATR) for The Gap Inc. is set at 1.00, with the Price to Sales ratio for GPS stock in the period of the last 12 months amounting to 0.58. The Price to Book ratio for the last quarter was 3.51, with the Price to Cash per share for the same quarter was set at 5.76. Price to Free Cash Flow for GPS in the course of the last twelve months was 24.39 with Quick ratio for the last quarter at 0.80.

GPS Stock Performance Analysis:

The Gap Inc. [GPS] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.50. With this latest performance, GPS shares gained by 27.79% in over the last four-week period, additionally plugging by 206.52% over the last 6 months – not to mention a rise of 20.44% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GPS stock in for the last two-week period is set at 68.49, with the RSI for the last a single of trading hit 71.93, and the three-weeks RSI is set at 67.16 for The Gap Inc. [GPS]. The present Moving Average for the last 50 days of trading for this stock 17.46, while it was recorded at 19.44 for the last single week of trading, and 13.30 for the last 200 days.

Insight into The Gap Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and The Gap Inc. [GPS] shares currently have an operating margin of +6.16 and a Gross Margin at +37.39. The Gap Inc.’s Net Margin is presently recorded at +2.14.

Return on Total Capital for GPS is now 12.78, given the latest momentum, and Return on Invested Capital for the company is 4.72. Return on Equity for this stock inclined to 10.22, with Return on Assets sitting at 3.23. When it comes to the capital structure of this company, The Gap Inc. [GPS] has a Total Debt to Total Equity ratio set at 231.51. Additionally, GPS Total Debt to Total Capital is recorded at 69.84, with Total Debt to Total Assets ending up at 56.12. Long-Term Debt to Equity for the company is recorded at 203.77, with the Long-Term Debt to Total Capital now at 61.47.

Reflecting on the efficiency of the workforce at the company, The Gap Inc. [GPS] managed to generate an average of $2,721 per employee. Receivables Turnover for the company is 48.54 with a Total Asset Turnover recorded at a value of 1.51.The Gap Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 1.50.

GPS Stock EPS

With the latest financial reports released by the company, The Gap Inc. posted 0.53/share EPS, while the average EPS was predicted by analysts to be reported at 0.51/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 3.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GPS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for The Gap Inc. go to -10.90%.

The Gap Inc. [GPS] Insider Position Details

There are presently around $4,573 million, or 59.70% of GPS stock, in the hands of institutional investors. The top three institutional holders of GPS stocks are: DODGE & COX with ownership of 28,524,381, which is approximately -0.473% of the company’s market cap and around 9.00% of the total institutional ownership; VANGUARD GROUP INC, holding 27,662,778 shares of the stock with an approximate value of $585.07 million in GPS stocks shares; and BLACKROCK INC., currently with $302.56 million in GPS stock with ownership of nearly -37.643% of the company’s market capitalization.

Positions in The Gap Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 177 institutional holders increased their position in The Gap Inc. [NYSE:GPS] by around 45,764,285 shares. Additionally, 220 investors decreased positions by around 62,569,405 shares, while 50 investors held positions by with 107,879,645 shares. The mentioned changes placed institutional holdings at 216,213,335 shares, according to the latest SEC report filing. GPS stock had 84 new institutional investments in for a total of 22,110,178 shares, while 80 institutional investors sold positions of 12,840,783 shares during the same period.

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