The stock price of Gap, Inc. (NYSE: GPS) has jumped by 0.80 compared to previous close of 27.55. Despite this, the company has seen a fall of -1.10% in its stock price over the last five trading days. Zacks Investment Research reported 2024-04-01 that Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Is It Worth Investing in Gap, Inc. (NYSE: GPS) Right Now?
Gap, Inc. (NYSE: GPS) has a price-to-earnings ratio of 20.83x that is above its average ratio. Additionally, the 36-month beta value for GPS is 2.27. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 3 rating it as “overweight,” 19 rating it as “hold,” and 3 rating it as “sell.”
The public float for GPS is 214.06M and currently, short sellers hold a 16.12% ratio of that float. The average trading volume of GPS on April 01, 2024 was 7.60M shares.
GPS’s Market Performance
GPS’s stock has seen a -1.10% decrease for the week, with a 46.62% rise in the past month and a 31.61% gain in the past quarter. The volatility ratio for the week is 2.57%, and the volatility levels for the past 30 days are at 4.60% for Gap, Inc. The simple moving average for the past 20 days is 16.79% for GPS’s stock, with a 81.34% simple moving average for the past 200 days.
Analysts’ Opinion of GPS
Many brokerage firms have already submitted their reports for GPS stocks, with Telsey Advisory Group repeating the rating for GPS by listing it as a “Market Perform.” The predicted price for GPS in the upcoming period, according to Telsey Advisory Group is $22 based on the research report published on March 08, 2024 of the current year 2024.
JP Morgan, on the other hand, stated in their research note that they expect to see GPS reach a price target of $20, previously predicting the price at $16. The rating they have provided for GPS stocks is “Neutral” according to the report published on February 26th, 2024.
Telsey Advisory Group gave a rating of “Market Perform” to GPS, setting the target price at $17 in the report published on November 17th of the previous year.
GPS Trading at 31.03% 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 -2.87% of loss for the given period.
Volatility was left at 4.60%, however, over the last 30 days, the volatility rate increased by 2.57%, as shares surge +45.12% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +49.27% upper at present.
During the last 5 trading sessions, GPS fell by -1.50%, which changed the moving average for the period of 200-days by +183.69% in comparison to the 20-day moving average, which settled at $24.21. In addition, Gap, Inc. saw 32.81% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at GPS starting from Breitbard Mark, who sale 17,392 shares at the price of $27.94 back on Mar 26 ’24. After this action, Breitbard Mark now owns 123,985 shares of Gap, Inc., valued at $485,880 using the latest closing price.
O’Connell Katrina, the Chief Financial Officer of Gap, Inc., sale 9,818 shares at $27.94 during a trade that took place back on Mar 26 ’24, which means that O’Connell Katrina is holding 0 shares at $274,270 based on the most recent closing price.
Stock Fundamentals for GPS
Current profitability levels for the company are sitting at:
- 0.02 for the present operating margin
- 0.37 for the gross margin
The net margin for Gap, Inc. stands at 0.0. The total capital return value is set at 0.04. Equity return is now at value 20.80, with 4.48 for asset returns.
Based on Gap, Inc. (GPS), the company’s capital structure generated 0.68 points at debt to capital in total, while cash flow to debt ratio is standing at 0.29. The debt to equity ratio resting at 2.1. The interest coverage ratio of the stock is 4.05.
Currently, EBITDA for the company is 471.0 million with net debt to EBITDA at 4.21. When we switch over and look at the enterprise to sales, we see a ratio of 0.94. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.42.
Conclusion
In conclusion, Gap, Inc. (GPS) has seen better performance in recent times. Analysts have a bearish opinion on the stock, with some rating it as a “sell” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
