GAP (GPS) Downgraded by Zacks Investment Research

GAP (NYSE:GPS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.

According to Zacks, “Gap’s shares have underperformed the industry in the past three months. Though the company’s earnings and sales topped estimates in fourth-quarter fiscal 2017, adverse currency movements dented bottom-line growth. Well, currency woes along with stiff industry completion and other macroeconomic headwinds remain threats. Further, the company has been witnessing soft comps across its namesake brand. However, the company’s solid focus on enhancing product quality and responsiveness to changing consumer trends, remain encouraging. The company has also been making constant efforts to boost digital and mobile offerings, alongside improving product acceptance. Further, comps improved for the fifth straight quarter in fourth-quarter fiscal 2017, owing to persistent momentum at Old Navy brand. Nevertheless, the company’s earnings estimates have been witnessing downward revisions ahead of first-quarter fiscal 2018 earnings.”

Several other equities research analysts also recently weighed in on the company. ValuEngine downgraded GAP from a “buy” rating to a “hold” rating in a report on Monday, April 2nd. Credit Suisse Group assumed coverage on GAP in a report on Monday, March 12th. They issued a “neutral” rating and a $35.00 price target on the stock. Oppenheimer increased their price target on GAP from $30.00 to $33.00 in a report on Friday, March 9th. Nomura increased their price target on GAP from $31.00 to $33.00 and gave the stock a “neutral” rating in a report on Monday, March 5th. Finally, TheStreet upgraded GAP from a “c+” rating to a “b” rating in a report on Thursday, March 1st. Four analysts have rated the stock with a sell rating, twenty-one have issued a hold rating and five have assigned a buy rating to the stock. GAP currently has a consensus rating of “Hold” and an average price target of $31.99.

Shares of NYSE GPS traded up $0.37 during midday trading on Tuesday, hitting $28.72. The company’s stock had a trading volume of 935,159 shares, compared to its average volume of 4,815,169. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.04 and a current ratio of 1.86. GAP has a 12-month low of $21.02 and a 12-month high of $35.68. The company has a market cap of $11.20 billion, a price-to-earnings ratio of 13.48, a PEG ratio of 1.38 and a beta of 0.84.

GAP (NYSE:GPS) last issued its quarterly earnings results on Thursday, March 1st. The apparel retailer reported $0.61 earnings per share for the quarter, topping the consensus estimate of $0.58 by $0.03. GAP had a return on equity of 28.13% and a net margin of 5.35%. The firm had revenue of $4.78 billion for the quarter, compared to the consensus estimate of $4.68 billion. During the same period in the prior year, the business posted $0.51 earnings per share. The company’s revenue for the quarter was up 7.9% on a year-over-year basis. sell-side analysts predict that GAP will post 2.62 earnings per share for the current year.

In related news, Director Brian Goldner bought 5,000 shares of the company’s stock in a transaction on Monday, March 5th. The shares were acquired at an average price of $33.75 per share, with a total value of $168,750.00. Following the transaction, the director now owns 5,000 shares of the company’s stock, valued at $168,750. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Dara Bazzano sold 4,066 shares of the firm’s stock in a transaction on Monday, March 5th. The stock was sold at an average price of $34.00, for a total value of $138,244.00. The disclosure for this sale can be found here. Insiders have sold a total of 1,770,425 shares of company stock worth $57,824,673 in the last ninety days. Insiders own 30.60% of the company’s stock.

Several institutional investors have recently bought and sold shares of GPS. Acropolis Investment Management LLC boosted its position in shares of GAP by 115.4% in the 4th quarter. Acropolis Investment Management LLC now owns 4,185 shares of the apparel retailer’s stock worth $143,000 after purchasing an additional 2,242 shares in the last quarter. Bristol Advisors LLC acquired a new stake in shares of GAP in the 4th quarter worth $2,384,000. Nisa Investment Advisors LLC lifted its position in GAP by 10.7% during the 4th quarter. Nisa Investment Advisors LLC now owns 167,612 shares of the apparel retailer’s stock worth $5,709,000 after acquiring an additional 16,155 shares during the period. Bank of Montreal Can lifted its position in GAP by 68.9% during the 4th quarter. Bank of Montreal Can now owns 2,212,793 shares of the apparel retailer’s stock worth $75,367,000 after acquiring an additional 902,621 shares during the period. Finally, Schwab Charles Investment Management Inc. lifted its position in GAP by 1.9% during the 4th quarter. Schwab Charles Investment Management Inc. now owns 1,418,815 shares of the apparel retailer’s stock worth $48,325,000 after acquiring an additional 26,458 shares during the period. 58.61% of the stock is owned by hedge funds and other institutional investors.

About GAP

The Gap, Inc operates as an apparel retail company worldwide. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, and Intermix brands. Its products include denim, tees, button-downs, khakis, and other products; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities to women and girls.

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