The Gap Inc. [NYSE: GPS] stock went on a downward path that fall over -3.72% on Tuesday, amounting to a one-week price decrease of less than -0.88%. The company report on May 12, 2021 that Gap Inc. Announces Second Quarter Dividend and Resumption of Share Repurchase Program.
Gap Inc. (NYSE: GPS) announced its board of directors has authorized a second quarter fiscal year 2021 dividend of $0.12 per share, payable on or after July 28, 2021 to shareholders of record at the close of business on July 7, 2021.
Additionally, the company announced the resumption of its share repurchase program, which has $800 million of its $1 billion authorization remaining. Subject to market conditions and other considerations, the company currently intends to repurchase up to $200 million of shares under the program in the remainder of fiscal year 2021.
Over the last 12 months, GPS stock rose by 347.31%. The one-year The Gap Inc. stock forecast points to a potential downside of -18.14. 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 $12.30 billion, with 377.00 million shares outstanding and 197.31 million shares in the current float. Compared to the average trading volume of 6.53M shares, GPS stock reached a trading volume of 8402681 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 $29.61 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.
Credit Suisse have made an estimate for The Gap Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on May 18, 2021. While these analysts kept the previous recommendation, RBC Capital Mkts raised their target price to Outperform. The new note on the price target was released on April 23, 2021, representing the official price target for The Gap Inc. stock. Previously, the target price had yet another raise from $23 to $27, while Telsey Advisory Group kept a Market Perform rating on GPS stock.
The Average True Range (ATR) for The Gap Inc. is set at 1.69, with the Price to Sales ratio for GPS stock in the period of the last 12 months amounting to 0.89. The Price to Book ratio for the last quarter was 5.05, with the Price to Cash per share for the same quarter was set at 6.82.
GPS Stock Performance Analysis:
The Gap Inc. [GPS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.88. With this latest performance, GPS shares gained by 7.93% in over the last four-week period, additionally plugging by 58.50% over the last 6 months – not to mention a rise of 347.31% 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 55.39, with the RSI for the last a single of trading hit 53.42, and the three-weeks RSI is set at 56.92 for The Gap Inc. [GPS]. The present Moving Average for the last 50 days of trading for this stock 32.20, while it was recorded at 34.60 for the last single week of trading, and 23.19 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 -2.25 and a Gross Margin at +34.00. The Gap Inc.’s Net Margin is presently recorded at -4.82.
Return on Total Capital for GPS is now -2.92, given the latest momentum, and Return on Invested Capital for the company is -6.81. Return on Equity for this stock declined to -22.43, with Return on Assets sitting at -4.85. When it comes to the capital structure of this company, The Gap Inc. [GPS] has a Total Debt to Total Equity ratio set at 293.19. Additionally, GPS Total Debt to Total Capital is recorded at 74.57, with Total Debt to Total Assets ending up at 55.66. Long-Term Debt to Equity for the company is recorded at 261.40, with the Long-Term Debt to Total Capital now at 66.48.
Reflecting on the efficiency of the workforce at the company, The Gap Inc. [GPS] managed to generate an average of -$5,684 per employee. Receivables Turnover for the company is 40.65 with a Total Asset Turnover recorded at a value of 1.01.The Gap Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.50.
GPS Stock EPS
With the latest financial reports released by the company, The Gap Inc. posted -2.51/share EPS, while the average EPS was predicted by analysts to be reported at -0.67/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -274.60%. 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 4.90%.
The Gap Inc. [GPS] Insider Position Details
There are presently around $7,013 million, or 55.80% of GPS stock, in the hands of institutional investors. The top three institutional holders of GPS stocks are: VANGUARD GROUP INC with ownership of 26,508,356, which is approximately 1.47% of the company’s market cap and around 8.90% of the total institutional ownership; DODGE & COX, holding 24,299,762 shares of the stock with an approximate value of $850.01 million in GPS stocks shares; and BLACKROCK INC., currently with $558.72 million in GPS stock with ownership of nearly 29.937% of the company’s market capitalization.
Positions in The Gap Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 183 institutional holders increased their position in The Gap Inc. [NYSE:GPS] by around 44,293,943 shares. Additionally, 236 investors decreased positions by around 40,236,536 shares, while 58 investors held positions by with 115,946,790 shares. The mentioned changes placed institutional holdings at 200,477,269 shares, according to the latest SEC report filing. GPS stock had 89 new institutional investments in for a total of 10,518,640 shares, while 74 institutional investors sold positions of 17,835,107 shares during the same period.