Telsey Advisory Group has recently reiterated Gap Inc (GAP) stock to Market Perform rating, as announced on August 30, 2024, according to Finviz. Earlier, on July 31, 2024, BofA Securities had raised the stock from a Underperform to Neutral, setting a price target of $25 for GAP stock. Morgan Stanley also raised their rating with a price target of $29. Additionally, TD Cowen raised Buy rating on June 25, 2024, with a target price of $30. Telsey Advisory Group analysts, in their report published on May 31, 2024, also reiterated Market Perform rating and set a price target of $29 for Gap Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Gap Inc (GAP) Stock Trading Recap
On Friday, Gap Inc (GAP) stock saw a modest uptick, ending the day at $21.21 which represents a slight increase of $0.67 or 3.26% from the prior close of $20.54. The stock opened at $20.85 and touched a low of $20.84 during the day, reaching a high of $21.43. The volume of shares traded was 5.58 million falling short of the average volume of 6.55 million.
GAP Stock Performance and Moving Averages
In recent trading, Gap Inc (GAP) stock price has shown some volatility, fluctuating 6.00% over the last five trades and -6.61% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -7.78%, and it has plunged by -17.95% in the previous three months. Currently, GAP is trading at -5.65%, -5.87%, and -4.20% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, GAP, a Consumer Cyclical sector stock, is trading -31.02% below its 52-week high but remains 118.43% above its 52-week low. The Average True Range (ATR) (14 days) of 1.06 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Gap Inc’s Profitability and Valuation Ratios
Gap Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 6.09% and a profit margin of 5.06%, with a gross margin of -7.78%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Gap Inc’s market capitalization stands at $7.98 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 10.51, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 10.43. Additionally, the Price-to-Sales Ratio is 0.53, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 2.75, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 40.08% of Gap Inc (GAP)’s shares, while financial institutions hold 63.62%.
Notable insider trades include Barbeito Horacio, President & CEO, Old Navy at Gap Inc (GAP), who sold 75385 shares on Sep 12 ’24, at $20 each, totaling $1.51 million. On Aug 23 ’24, Gilligan Sarah, Chief Sup Chn & Transform Ofcr, sold 12000 shares for $25 each, amounting to $0.30 million. Additionally, on Aug 23 ’24, Breitbard Mark sold 93808 shares at $25 each, generating $2.35 million.
