Here is How Warren Buffer Would Trade The Gap Inc. (GPS)


The Gap Inc. (NYSE:GPS) went down by -0.96% from its latest closing price compared to the recent 1-year high of $18.99. The company’s stock price has collected -4.00% of loss in the last five trading sessions. Barron’s reported on 09/10/20 that Many Retailers Are Closing. That’s Good for Survivors.

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Is It Worth Investing in The Gap Inc. (NYSE :GPS) Right Now?

Plus, the 36-month beta value for GPS is at 1.59.

GPS currently public float of 208.09M and currently shorts hold a 16.65% ratio of that float. Today, the average trading volume of GPS was 13.40M shares.

GPS’s Market Performance

GPS stocks went down by -4.00% for the week, with a monthly jump of 6.77% and a quarterly performance of 58.83%, while its annual performance rate touched -3.67%. The volatility ratio for the week stands at 3.75% while the volatility levels for the past 30 days are set at 4.19% for The Gap Inc.. The simple moving average for the period of the last 20 days is -3.90% for GPS stocks with a simple moving average of 25.65% for the last 200 days.

Analysts’ Opinion of GPS

Many brokerage firms have already submitted their reports for GPS stocks, with BofA Securities repeating the rating for GPS by listing it as a “Neutral.” The predicted price for GPS in the upcoming period, according to BofA Securities is $18 based on the research report published on August 28th of the current year 2020.

Telsey Advisory Group, on the other hand, stated in their research note that they expect to see GPS reach a price target of $17, previously predicting the price at $10. The rating they have provided for GPS stocks is “Market Perform” according to the report published on August 28th, 2020.

Citigroup gave a rating of “Buy” to GPS, setting the target price at $24 in the report published on August 25th of the current year.

GPS Trading at 9.24% from the 50-Day Moving Average

After a stumble in the market that brought GPS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.85% of loss for the given period.

Volatility was left at 4.19%, however, over the last 30 days, the volatility rate increased by 3.75%, as shares sank -3.27% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +48.43% upper at present.

During the last 5 trading sessions, GPS fell by -4.00%, which changed the moving average for the period of 200-days by +1.72% in comparison to the 20-day moving average, which settled at $17.19. In addition, The Gap Inc. saw -6.39% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at GPS starting from Syngal Sonia, who sale 36,830 shares at the price of $17.58 back on Aug 31. After this action, Syngal Sonia now owns 57,085 shares of The Gap Inc., valued at $647,449 using the latest closing price.

Gruber Julie, the Chief Legal&Compliance Officer of The Gap Inc., sale 9,535 shares at $16.21 during a trade that took place back on Aug 25, which means that Gruber Julie is holding 2,435 shares at $154,562 based on the most recent closing price.

Stock Fundamentals for GPS

Current profitability levels for the company are sitting at:

  • +6.16 for the present operating margin
  • +37.39 for the gross margin

The net margin for The Gap Inc. stands at +2.14. The total capital return value is set at 12.78, while invested capital returns managed to touch 4.72. Equity return is now at value -36.00, with -7.70 for asset returns.

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Based on The Gap Inc. (GPS), the company’s capital structure generated 231.51 points at debt to equity in total, while total debt to capital is 69.84. Total debt to assets is 56.12, with long-term debt to equity ratio resting at 203.77. Finally, the long-term debt to capital ratio is 61.47.

Currently, EBITDA for the company is 224.00M with total debt to EBITDA at 0.80. When we switch over and look at the enterprise to sales, we see a ratio of 0.77, with the company’s debt to enterprise value settled at 0.61. The receivables turnover for the company is 48.54 and the total asset turnover is 1.51. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.41.


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