Market Analysts see The Gap Inc. [GPS] gaining to $38. Time to buy?

The Gap Inc. [NYSE: GPS] traded at a high on 06/21/21, posting a 1.05 gain after which it closed the day’ session at $31.61. The company report on June 21, 2021 that Gap Inc. & Harlem’s Fashion Row Announce Award Winners for ‘Closing the Gap’ Initiative.

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$510,000 in Funding to be Awarded to Ten Deserving Fashion Departments at HBCUs.

In an ongoing effort to bridge the gap between education and fashion’s new generation of Black, Indigenous and Other People of Color (BIPOC) leaders, Gap Inc., Harlem’s Fashion Row (HFR), and ICON360, a nonprofit subsidiary of HFR, announced the winners of the ‘Closing the Gap’ scholarships. These 10 deserving fashion departments at Historically Black Colleges and Universities (HBCUs) will be receiving financial awards from a pool of $510,000, making this the largest donation to HBCUs fashion programs by a major retailer.

The results of the trading session contributed to over 7140425 shares changing hands. Over the past one week, the price volatility of The Gap Inc. stands at 3.59% while the volatility over the past one month is 3.76%.

The market cap for GPS stock reached $12.36 billion, with 376.00 million shares outstanding and 200.07 million shares in the current float. Compared to the average trading volume of 6.43M shares, GPS reached a trading volume of 7140425 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about 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 $36.37 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 2.80. 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.

Telsey Advisory Group have made an estimate for The Gap Inc. shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on May 28, 2021. While these analysts kept the previous recommendation, Telsey Advisory Group raised their target price from $27 to $35. The new note on the price target was released on May 25, 2021, representing the official price target for The Gap Inc. stock. Previously, the target price had yet another raise to $23, while Credit Suisse analysts kept a Neutral rating on GPS stock.

The Average True Range (ATR) for The Gap Inc. is set at 1.42, with the Price to Sales ratio for GPS stock in the period of the last 12 months amounting to 0.79. The Price to Book ratio for the last quarter was 4.24, with the Price to Cash per share for the same quarter was set at 6.50. Price to Free Cash Flow for GPS in the course of the last twelve months was 11.97 with Quick ratio for the last quarter at 1.00.

How has GPS stock performed recently?

The Gap Inc. [GPS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.56. With this latest performance, GPS shares dropped by -2.98% in over the last four-week period, additionally plugging by 52.34% over the last 6 months – not to mention a rise of 196.53% 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 44.49, with the RSI for the last a single of trading hit 42.54, and the three-weeks RSI is set at 46.65 for The Gap Inc. [GPS]. The present Moving Average for the last 50 days of trading for this stock 33.26, while it was recorded at 32.10 for the last single week of trading, and 25.15 for the last 200 days.

The Gap Inc. [GPS]: Deeper insight into the 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 1.00 and a Current Ratio set at 1.60.

Earnings analysis for The Gap Inc. [GPS]

With the latest financial reports released by the company, The Gap Inc. posted -0.17/share EPS, while the average EPS was predicted by analysts to be reported at -0.41/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 58.50%. 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%.

Insider trade positions for The Gap Inc. [GPS]

There are presently around $6,335 million, or 54.60% 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 8.80% of the total institutional ownership; DODGE & COX, holding 24,299,762 shares of the stock with an approximate value of $768.12 million in GPS stocks shares; and BLACKROCK INC., currently with $504.9 million in GPS stock with ownership of nearly 29.937% of the company’s market capitalization.

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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 188 institutional holders increased their position in The Gap Inc. [NYSE:GPS] by around 44,182,018 shares. Additionally, 236 investors decreased positions by around 40,510,172 shares, while 58 investors held positions by with 115,712,424 shares. The mentioned changes placed institutional holdings at 200,404,614 shares, according to the latest SEC report filing. GPS stock had 92 new institutional investments in for a total of 10,356,094 shares, while 75 institutional investors sold positions of 18,142,841 shares during the same period.

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