The Gap Inc. [GPS] Stock trading around $11.33 per share: What’s Next?

The Gap Inc. [NYSE: GPS] surged by $0.05 during the normal trading session on Tuesday and reaching a high of $11.38 during the day while it closed the day at $11.33. The company report on November 17, 2022 that Gap Inc. Reports Third Quarter Fiscal 2022 Results.

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Gap Inc. (NYSE: GPS), a portfolio of purpose-led, billion-dollar lifestyle brands including Old Navy, Gap, Banana Republic, and Athleta, and the largest specialty apparel company in the U.S., today reported financial results for its third quarter ended October 29, 2022.

“I have deep conviction that we have a portfolio of iconic brands that our customers love, increased confidence in our platform to drive leverage and economies of scale, and belief in the team’s ability to deliver. We have sharpened our focus on execution to optimize profitability and cash flow, are bringing more rigor to our operations, and balancing our assortments in response to what our customers are telling us. While our efforts show early signs of improvement, we are clear that there is work to be done to deliver what our customers, employees and shareholders expect from Gap Inc.” said Bob Martin, Executive Chairman and Interim CEO, Gap Inc.

The Gap Inc. stock has also loss -6.05% of its value over the past 7 days. However, GPS stock has inclined by 31.59% in the 3 months of the year. Over the past six months meanwhile, it has gained 29.93% and gained 0.44% year-on date.

The market cap for GPS stock reached $4.18 billion, with 365.00 million shares outstanding and 179.49 million shares in the current float. Compared to the average trading volume of 8.60M shares, GPS reached a trading volume of 8167836 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 $12.26 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 3.20. 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.

Goldman have made an estimate for The Gap Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on December 12, 2022. While these analysts kept the previous recommendation, Barclays raised their target price from $6 to $9. The new note on the price target was released on August 30, 2022, representing the official price target for The Gap Inc. stock. Previously, the target price had yet another raise from $7.50 to $8, while Morgan Stanley kept a Underweight rating on GPS stock. On July 13, 2022, analysts decreased their price target for GPS shares from 12 to 9.

The Average True Range (ATR) for The Gap Inc. is set at 0.52, with the Price to Sales ratio for GPS stock in the period of the last 12 months amounting to 0.26. The Price to Book ratio for the last quarter was 1.61, with the Price to Cash per share for the same quarter was set at 1.84.

GPS stock trade performance evaluation

The Gap Inc. [GPS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -6.05. With this latest performance, GPS shares dropped by -21.37% in over the last four-week period, additionally plugging by 29.93% over the last 6 months – not to mention a drop of -35.81% 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 33.67, with the RSI for the last a single of trading hit 26.24, and the three-weeks RSI is set at 39.91 for The Gap Inc. [GPS]. The present Moving Average for the last 50 days of trading for this stock 12.59, while it was recorded at 11.36 for the last single week of trading, and 11.14 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 +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 0.60 and a Current Ratio set at 1.50.

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 -7.98%.

The Gap Inc. [GPS]: Insider Ownership positions

There are presently around $2,399 million, or 59.30% of GPS stock, in the hands of institutional investors. The top three institutional holders of GPS stocks are: DODGE & COX with ownership of 38,268,126, which is approximately -0.882% of the company’s market cap and around 5.70% of the total institutional ownership; VANGUARD GROUP INC, holding 24,108,365 shares of the stock with an approximate value of $273.15 million in GPS stocks shares; and BLACKROCK INC., currently with $229.96 million in GPS stock with ownership of nearly 0.735% of the company’s market capitalization.

Positions in The Gap Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 181 institutional holders increased their position in The Gap Inc. [NYSE:GPS] by around 24,516,004 shares. Additionally, 165 investors decreased positions by around 26,531,891 shares, while 62 investors held positions by with 160,726,912 shares. The mentioned changes placed institutional holdings at 211,774,807 shares, according to the latest SEC report filing. GPS stock had 55 new institutional investments in for a total of 12,470,190 shares, while 55 institutional investors sold positions of 3,055,465 shares during the same period.


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