The Gap Inc. [GPS] is 21.74% higher this YTD. Is it still time to buy?

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The Gap Inc. [NYSE: GPS] surged by $0.67 during the normal trading session on Monday and reaching a high of $24.86 during the day while it closed the day at $24.58. The company report on September 28, 2021 that Gap Inc. Announces Closing of $1.5 Billion Senior Notes Offering.

The Gap, Inc. (NYSE: GPS) (“Gap Inc.” or the “Company”) announced it has closed its previously announced offering of $1.5 billion of senior notes (the “Notes”), consisting of $750 million aggregate principal amount of the Company’s 3.625% Senior Notes due 2029 and $750 million aggregate principal amount of the Company’s 3.875% Senior Notes due 2031.

The Notes were issued under an Indenture, dated as of September 27, 2021, among the Company, certain subsidiary guarantors of the Company and U.S. Bank National Association, as Trustee, Registrar and Paying Agent.

The Gap Inc. stock has also gained 3.19% of its value over the past 7 days. However, GPS stock has declined by -24.74% in the 3 months of the year. Over the past six months meanwhile, it has lost -14.53% and gained 21.74% year-on date.

The market cap for GPS stock reached $9.35 billion, with 378.00 million shares outstanding and 198.51 million shares in the current float. Compared to the average trading volume of 6.64M shares, GPS reached a trading volume of 7327243 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to 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 $34.25 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 2.70. 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.

Deutsche Bank have made an estimate for The Gap Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 27, 2021. While these analysts kept the previous recommendation, BofA Securities dropped their target price from $40 to $32. The new note on the price target was released on August 27, 2021, representing the official price target for The Gap Inc. stock. Previously, the target price had yet another drop from $35 to $28, while B. Riley Securities kept a Neutral rating on GPS stock. On July 26, 2021, analysts increased their price target for GPS shares from 38 to 42.

The Average True Range (ATR) for The Gap Inc. is set at 0.92, with the Price to Sales ratio for GPS stock in the period of the last 12 months amounting to 0.56. The Price to Book ratio for the last quarter was 3.08, with the Price to Cash per share for the same quarter was set at 7.13. Price to Free Cash Flow for GPS in the course of the last twelve months was 17.78 with Quick ratio for the last quarter at 1.10.

GPS stock trade performance evaluation

The Gap Inc. [GPS] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.19. With this latest performance, GPS shares dropped by -6.72% in over the last four-week period, additionally sinking by -14.53% over the last 6 months – not to mention a rise of 50.89% 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 44.40, with the RSI for the last a single of trading hit 49.90, and the three-weeks RSI is set at 42.44 for The Gap Inc. [GPS]. The present Moving Average for the last 50 days of trading for this stock 26.98, while it was recorded at 23.92 for the last single week of trading, and 27.99 for the last 200 days.

The Gap Inc. [GPS]: An insightful look at the core 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 1.10 and a Current Ratio set at 1.70.

Earnings per share (EPS) analysis for The Gap Inc. [GPS] stock

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 Ownership positions

There are presently around $5,129 million, or 56.30% of GPS stock, in the hands of institutional investors. The top three institutional holders of GPS stocks are: VANGUARD GROUP INC with ownership of 27,061,253, which is approximately 2.086% of the company’s market cap and around 5.60% of the total institutional ownership; JPMORGAN CHASE & CO, holding 24,900,862 shares of the stock with an approximate value of $612.06 million in GPS stocks shares; and DODGE & COX, currently with $576.91 million in GPS stock with ownership of nearly -3.411% 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 August and at the time of the August reporting period, where 229 institutional holders increased their position in The Gap Inc. [NYSE:GPS] by around 36,904,375 shares. Additionally, 195 investors decreased positions by around 28,105,038 shares, while 56 investors held positions by with 143,658,591 shares. The mentioned changes placed institutional holdings at 208,668,004 shares, according to the latest SEC report filing. GPS stock had 80 new institutional investments in for a total of 6,005,783 shares, while 63 institutional investors sold positions of 6,307,993 shares during the same period.

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