Gap, Inc. (NYSE: GPS) shares rose ahead of Friday trading after the company reported quarterly earnings that were higher than analysts had expected. However, the stock price fell to $12.71 by the end of the trading day after opening at $13.85. The last price at which GAP shares traded was $13.60 per share and 139,728 shares were traded.
Earnings per share for the quarter were reported at $0.71 for the apparel business, which is $0.70 better than the consensus estimate of $0.01 among industry analysts. Return on equity for GAP was negative at 1.48% and the company’s net margin was negative at 2.40%. Quarterly revenue was $4.04 billion, well above the $3.83 billion forecast by analysts. In the same period last year, the company earned $0.27 per share. In the same period last year, GAP’s revenues increased by 2.4% compared to the previous year’s total.
Additionally, the company has announced a quarterly dividend, which is set to be paid on the 25th of this month. A dividend of $0.15 will be paid to shareholders of record on January 4th. The ex-dividend date for this dividend is the third Tuesday of January. That equates to a dividend payment of $0.60 per year and a yield of 4.37%. The RTP for GAP is now -59.41%.
Several different research companies have recently made statements about GPS. Goldman Sachs Group raised its price target on GAP to $9.00 from $8.00 and gave the company a neutral rating in a report published on Friday, August 26. Barclays raised its target price on GAP shares from $6.00 to $9.00 and upgraded the company’s rating from “underweight” to “equal weight” in a research report published on August 30. Cowen lowered his price target on GAP to $10.00 from $12.00 and gave the company a “Market Perform” rating in a report published on Aug. 31. Finally, JPMorgan Chase & Co. increased its price target on GAP to $9.00 from $8.00 in a research report published on Friday, September 16.
Last but not least, Jefferies Financial Group released a study on Friday raising its price estimate for GAP from $11.00 to $13.00. Six financial experts believe investors should consider selling the stock, while thirteen others believe investors should consider staying in. According to data from Bloomberg, the current recommendation for GAP is Hold and analysts’ consensus target for the stock is $11.09 per share.
On October 31, the Company’s CEO, Mary Beth Laughton, sold 11,030 shares of the Company. At an average price of $11.28 per share, the shares were sold for a total of $124,418.40, bringing the total to $124,418.40. As a result of the transaction, the company’s CEO now owns 31,561 shares of the company, which is valued at $356,008.08. This information about the sale was contained in a filing with the Securities and Exchange Commission (SEC) and is available here. The company’s insiders collectively hold 44.19% of the company’s stock.
Recent events have led to a change in the company’s position in the hedge fund. In the second quarter, Lindbrook Capital LLC increased its GAP holdings by 290.2%. Following an additional purchase of 3,021 shares in the prior quarter, Lindbrook Capital LLC now owns 4,062 shares of the apparel retailer, valued at $33,000. During the second quarter, Patriot Financial Group Insurance Agency LLC increased its stake in GAP by 58.5%. Patriot Financial Group Insurance Agency LLC currently owns 5,150 shares of the apparel business, valued at $42,000, after purchasing an additional 1,900 shares in the prior quarter. During the second quarter, Captrust Financial Advisors increased the percentage of the company’s stock it owns by 12.2%. Following an additional purchase of 930 shares in the prior quarter, Captrust Financial Advisors currently owns 8,561 shares held by the apparel business, totaling $71,000. The value of Covestor Ltd.’s stake to GAP increased by 208.4% in the first quarter. After further purchases totaling 4,678 shares in the previous quarter, Covestor Ltd. now owns 6,923 shares of the fashion retailer, which is currently valued at $97,000. Dorsey & Whitney Trust CO LLC added 14.2% more GAP shares to its holdings during the second quarter, bringing the total number of GAP shares it owns to 58. Dorsey & Whitney Trust CO LLC currently owns 13,161 shares of the fashion retailer for $108,000 after purchasing an additional 1,634 shares in the prior quarter. Institutional investors own 57.46% of the company’s shares.