why The Gap Inc. [GPS] is a Good Choice for Investors After New Price Target of $11.82

The Gap Inc. [NYSE: GPS] stock went on an upward path that rose over 2.14% on Monday, amounting to a one-week price decrease of less than -4.41%. The company report on March 28, 2023 that Old Navy Doubles Down on Pockets with Spring Dress Collection.

Brand Offers 50% More Women’s Dresses with Pockets in Spring Line.

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Old Navy is giving women what they want – more dresses with pockets! The retailer has doubled the number of dresses with pockets in its new spring collection, answering the rallying cry from women everywhere to provide pocket parity in their clothes.

Over the last 12 months, GPS stock dropped by -34.02%. The one-year The Gap Inc. stock forecast points to a potential upside of 19.29. The average equity rating for GPS stock is currently 3.20, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $3.51 billion, with 367.00 million shares outstanding and 179.49 million shares in the current float. Compared to the average trading volume of 8.57M shares, GPS stock reached a trading volume of 6618164 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 $11.82 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.

Morgan Stanley have made an estimate for The Gap Inc. shares, keeping their opinion on the stock as Equal-Weight, with their previous recommendation back on January 18, 2023. The new note on the price target was released on January 05, 2023, representing the official price target for The Gap Inc. stock. Previously, the target price had yet another raise to $18, while Goldman analysts kept a Buy rating on GPS stock. On August 30, 2022, analysts increased their price target for GPS shares from 6 to 9.

The Average True Range (ATR) for The Gap Inc. is set at 0.50, with the Price to Sales ratio for GPS stock in the period of the last 12 months amounting to 0.22. The Price to Book ratio for the last quarter was 1.57.

GPS Stock Performance Analysis:

The Gap Inc. [GPS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.41. With this latest performance, GPS shares dropped by -4.89% in over the last four-week period, additionally sinking by -3.05% over the last 6 months – not to mention a drop of -34.02% 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 43.17, with the RSI for the last a single of trading hit 46.06, and the three-weeks RSI is set at 41.66 for The Gap Inc. [GPS]. The present Moving Average for the last 50 days of trading for this stock 11.38, while it was recorded at 9.63 for the last single week of trading, and 11.07 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 -0.62 and a Gross Margin at +34.05. The Gap Inc.’s Net Margin is presently recorded at -1.29.

Return on Total Capital for GPS is now -1.13, given the latest momentum, and Return on Invested Capital for the company is -2.55. Return on Equity for this stock declined to -8.15, with Return on Assets sitting at -1.67. When it comes to the capital structure of this company, The Gap Inc. [GPS] has a Total Debt to Total Equity ratio set at 269.59. Additionally, GPS Total Debt to Total Capital is recorded at 72.94, with Total Debt to Total Assets ending up at 52.87. Long-Term Debt to Equity for the company is recorded at 239.72, with the Long-Term Debt to Total Capital now at 64.86.

Reflecting on the efficiency of the workforce at the company, The Gap Inc. [GPS] managed to generate an average of -$2,126 per employee. Receivables Turnover for the company is 42.26 with a Total Asset Turnover recorded at a value of 1.29.The Gap Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.70 and a Current Ratio set at 1.40.


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 -3.21%.

The Gap Inc. [GPS] Insider Position Details

There are presently around $2,042 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 37,980,426, which is approximately -0.752% of the company’s market cap and around 5.70% of the total institutional ownership; BLACKROCK INC., holding 23,325,389 shares of the stock with an approximate value of $217.86 million in GPS stocks shares; and VANGUARD GROUP INC, currently with $213.29 million in GPS stock with ownership of nearly -5.277% of the company’s market capitalization.

Positions in The Gap Inc. stocks held by institutional investors increased at the end of Thursday and at the time of the Thursday reporting period, where 204 institutional holders increased their position in The Gap Inc. [NYSE:GPS] by around 39,116,400 shares. Additionally, 158 investors decreased positions by around 30,606,670 shares, while 65 investors held positions by with 148,899,831 shares. The mentioned changes placed institutional holdings at 218,622,901 shares, according to the latest SEC report filing. GPS stock had 74 new institutional investments in for a total of 24,122,280 shares, while 48 institutional investors sold positions of 7,408,803 shares during the same period.


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