The Gap Inc. [GPS] is -45.04% lower this YTD. Is it still time to buy?



The Gap Inc. [NYSE: GPS] gained 0.83% or 0.08 points to close at $9.70 with a heavy trading volume of 7051117 shares. The company report on July 27, 2022 that Gap’s Back-to-School Campaign, “EVERYONE BELONGS,” Spotlights Real Kids with Unique Abilities and Differences Who Inspire and Embody Inclusion.

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Based on the book, Everyone Belongs, by Heather Avis, GapKids’ latest campaign continues to celebrate kids of all kinds who are flourishing with their unique abilities and talents.

Inspiring, inclusive and packed with joy, GapKids Fall campaign reminds us that life is brighter when everyone belongs, and everyone has a chance to shine. Just ahead of the back-to-school season, Gap celebrates belonging with newly released creative inspired by the children’s book of the same name, Everyone Belongs, by Heather Avis. The campaign features a wide range of real kids of all abilities and special talents, including those of Avis’s own children with Down syndrome.

It opened the trading session at $9.53, the shares rose to $9.87 and dropped to $9.36, the range by which the price of stock traded the whole day. The daily chart for GPS points out that the company has recorded -45.41% loss over the past six months. However, it is still -24.52% lower than its most recent low trading price.

If we look at the average trading volume of 10.26M shares, GPS reached to a volume of 7051117 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $10.29 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.

Deutsche Bank have made an estimate for The Gap Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on July 13, 2022. While these analysts kept the previous recommendation, Wells Fargo dropped their target price from $16 to $10. The new note on the price target was released on July 12, 2022, representing the official price target for The Gap Inc. stock. Previously, the target price had yet another drop from $13 to $8, while Morgan Stanley kept a Underweight rating on GPS stock. On May 27, 2022, analysts decreased their price target for GPS shares from 11 to 9.

The Average True Range (ATR) for The Gap Inc. is set at 0.49, with the Price to Sales ratio for GPS stock in the period of the last 12 months amounting to 0.20. The Price to Book ratio for the last quarter was 1.46, with the Price to Cash per share for the same quarter was set at 2.49.

Trading performance analysis for GPS stock

The Gap Inc. [GPS] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.32. With this latest performance, GPS shares gained by 17.72% in over the last four-week period, additionally sinking by -45.41% over the last 6 months – not to mention a drop of -66.75% 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 57.02, with the RSI for the last a single of trading hit 63.52, and the three-weeks RSI is set at 52.02 for The Gap Inc. [GPS]. The present Moving Average for the last 50 days of trading for this stock 9.49, while it was recorded at 9.29 for the last single week of trading, and 15.12 for the last 200 days.

The Gap Inc. [GPS]: A deeper dive into fundamental analysis

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 1.40.

The Gap Inc. [GPS]: An earnings per share (EPS) analysis

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 -9.40%.

An analysis of insider ownership at The Gap Inc. [GPS]

There are presently around $2,048 million, or 59.60% of GPS stock, in the hands of institutional investors. The top three institutional holders of GPS stocks are: DODGE & COX with ownership of 38,361,478, which is approximately 56.638% of the company’s market cap and around 9.30% of the total institutional ownership; VANGUARD GROUP INC, holding 25,362,875 shares of the stock with an approximate value of $246.02 million in GPS stocks shares; and JPMORGAN CHASE & CO, currently with $230.91 million in GPS stock with ownership of nearly -32.163% 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 179 institutional holders increased their position in The Gap Inc. [NYSE:GPS] by around 45,267,080 shares. Additionally, 209 investors decreased positions by around 51,904,856 shares, while 51 investors held positions by with 114,002,263 shares. The mentioned changes placed institutional holdings at 211,174,199 shares, according to the latest SEC report filing. GPS stock had 62 new institutional investments in for a total of 6,720,982 shares, while 81 institutional investors sold positions of 8,547,306 shares during the same period.