The Gap Inc. (NYSE: GPS) stock fell -2.50% on Thursday to $7.42 against a previous-day closing price of $7.61. With 20.13 million shares changed hands, the volume of the stock remained heavier than its average volume of 9.49 million shares. During the session, the Apparel Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $7.66 whereas the lowest price it dropped to was $7.22. The 52-week range on GPS shows that it touched its highest point at $15.49 and its lowest point at $7.48 during that stretch. It currently has a 1-year price target of $11.23. With its current market cap of 2.85 billion, GPS has annualized dividend of $0.60 while the current yield stands at 8.09%. Beta for the stock currently stands at 1.91.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GPS was down-trending over the past week, with a drop of -8.51%, but this was down by -20.56% over a month. Three-month performance dropped to -43.96% while six-month performance fell -49.42%. The stock lost -21.65% in the past year, while it has lost -34.22% so far this year. A look at the trailing 12-month EPS for GPS yields -0.55 with Next year EPS estimates of 0.85. For the next quarter, that number is 0.17. This implies an EPS growth rate of -188.60% for this year and 50.44% for next year. EPS is expected to decline by -3.21% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -17.60%.
Float and Shares Shorts:
At present, 367.00 million GPS shares are outstanding with a float of 179.49 million shares on hand for trading. On May 14, 2023, short shares totaled 31.45 million, which was 8.55% higher than short shares on Apr 13, 2023. In addition to Dr. Bobby L. Martin Ph.D. as the firm’s Exec. Chairman, Interim Pres & Interim CEO, Ms. Katrina O’Connell serves as its Exec. VP & CFO.
Institutional Ownership:
Through their ownership of 60.66% of GPS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 89.33% of GPS, in contrast to 31.46% held by mutual funds. Shares owned by individuals account for 28.67%. As the largest shareholder in GPS with 10.30% of the stake, Dodge & Cox holds 37,722,126 shares worth 37,722,126. A second-largest stockholder of GPS, The Vanguard Group, Inc., holds 22,953,523 shares, controlling over 6.27% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in GPS, holding 16,716,382 shares or 4.57% stake. With a 7.27% stake in GPS, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 26,631,900 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.02% of GPS stock, is the second-largest Mutual Fund holder. It holds 7,391,681 shares valued at 70.96 million. iShares Core S&P Mid Cap ETF holds 1.80% of the stake in GPS, owning 6,607,035 shares worth 63.43 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jan 27, 2023, GPS reported revenue of $3.48B and operating income of -$197.00M. The EBITDA in the recently reported quarter was -$67.00M and diluted EPS was -$0.44.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GPS since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With GPS analysts setting a high price target of $18.00 and a low target of $7.00, the average target price over the next 12 months is $10.73. Based on these targets, GPS could surge 142.59% to reach the target high and fall by -5.66% to reach the target low. Reaching the average price target will result in a growth of 44.61% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded GPS stock several times over the past three months with 24 Buys and 27 Sells. In these transactions, 240,094 shares were bought while 606,675 shares were sold. The number of buy transactions has increased to 43 while that of sell transactions has risen to 48 over the past year. The total number of shares bought during that period was 434,188 while 950,835 shares were sold.
