Guggenheim slashes price target on The Gap Inc. [GPS] – find out why.

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The Gap Inc. [NYSE: GPS] stock went on an upward path that rose over 4.67% on Monday, amounting to a one-week price increase of more than 4.50%. The company report on April 21, 2022 that Gap Inc. Announces Old Navy Leadership Change.

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Gap Inc. (NYSE: GPS) announced today that Old Navy President and CEO Nancy Green is exiting the Old Navy business this week.

“We believe in the power and potential of the Old Navy brand and the contribution it will have as we execute our Power Plan strategy and drive value creation at Gap Inc.,” said Gap Inc. CEO Sonia Syngal. “As we look to seize Old Navy’s potential, particularly amidst the macro-economic dynamics facing our industry, we believe now is the right time to bring in a new leader with the operational rigor and creative vision to execute on the brand’s unique value proposition. I want to thank Nancy Green for her decades of leadership and passion for our brands and customers, as well as the communities we serve.”.

Over the last 12 months, GPS stock dropped by -63.35%. The one-year The Gap Inc. stock forecast points to a potential upside of 16.34. The average equity rating for GPS stock is currently 2.70, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $4.98 billion, with 373.00 million shares outstanding and 203.22 million shares in the current float. Compared to the average trading volume of 11.19M shares, GPS stock reached a trading volume of 7357877 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 $15.54 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.

Guggenheim have made an estimate for The Gap Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on April 25, 2022. The new note on the price target was released on April 18, 2022, representing the official price target for The Gap Inc. stock. Previously, the target price had yet another drop from $17 to $13, while Barclays kept a Underweight rating on GPS stock.

The Average True Range (ATR) for The Gap Inc. is set at 0.78, with the Price to Sales ratio for GPS stock in the period of the last 12 months amounting to 0.30. The Price to Book ratio for the last quarter was 1.78, with the Price to Cash per share for the same quarter was set at 2.29.

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 4.50. With this latest performance, GPS shares dropped by -7.67% in over the last four-week period, additionally sinking by -42.71% over the last 6 months – not to mention a drop of -63.35% 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 45.25, with the RSI for the last a single of trading hit 46.67, and the three-weeks RSI is set at 44.53 for The Gap Inc. [GPS]. The present Moving Average for the last 50 days of trading for this stock 14.02, while it was recorded at 12.66 for the last single week of trading, and 20.15 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 +4.79 and a Gross Margin at +39.90. The Gap Inc.’s Net Margin is presently recorded at +1.54.

Return on Equity for this stock inclined to 9.60, with Return on Assets sitting at 1.93.

The Gap Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.50 and a Current Ratio set at 1.30.

GPS Stock EPS

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 17.50%.

The Gap Inc. [GPS] Insider Position Details

There are presently around $2,802 million, or 63.70% of GPS stock, in the hands of institutional investors. The top three institutional holders of GPS stocks are: JPMORGAN CHASE & CO with ownership of 35,092,225, which is approximately 2.666% of the company’s market cap and around 11.30% of the total institutional ownership; VANGUARD GROUP INC, holding 27,695,377 shares of the stock with an approximate value of $360.04 million in GPS stocks shares; and DODGE & COX, currently with $318.38 million in GPS stock with ownership of nearly 5.976% 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 206 institutional holders increased their position in The Gap Inc. [NYSE:GPS] by around 36,825,384 shares. Additionally, 190 investors decreased positions by around 37,017,894 shares, while 55 investors held positions by with 141,673,045 shares. The mentioned changes placed institutional holdings at 215,516,323 shares, according to the latest SEC report filing. GPS stock had 74 new institutional investments in for a total of 7,042,696 shares, while 81 institutional investors sold positions of 19,358,802 shares during the same period.