JPMorgan Chase & Co. Downgrades GAP (NYSE:GPS) to Neutral

JPMorgan Chase & Co. downgraded shares of GAP (NYSE:GPS) from an overweight rating to a neutral rating in a report published on Wednesday, Price Targets.com reports. The firm currently has $22.00 price objective on the apparel retailer’s stock, down from their prior price objective of $39.00.

GPS has been the topic of a number of other reports. Bank of America increased their price objective on shares of GAP from $32.00 to $40.00 and gave the stock a neutral rating in a research note on Friday, August 27th. B. Riley reduced their price objective on shares of GAP from $35.00 to $28.00 and set a neutral rating on the stock in a research note on Friday, August 27th. Wells Fargo & Company reduced their price objective on shares of GAP from $45.00 to $40.00 and set an overweight rating on the stock in a research note on Friday, October 15th. Telsey Advisory Group reduced their price objective on shares of GAP from $38.00 to $33.00 and set a market perform rating on the stock in a research note on Friday, August 27th. Finally, Wedbush restated a neutral rating on shares of GAP in a research note on Friday, August 27th. Sixteen equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of Hold and a consensus target price of $26.53.

GPS stock opened at $17.84 on Wednesday. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.07 and a current ratio of 1.70. The company’s 50-day simple moving average is $23.56 and its 200 day simple moving average is $27.95. GAP has a 52 week low of $17.71 and a 52 week high of $37.63. The company has a market capitalization of $6.71 billion, a PE ratio of 9.10, a price-to-earnings-growth ratio of 0.92 and a beta of 1.67.

GAP (NYSE:GPS) last announced its quarterly earnings data on Monday, November 22nd. The apparel retailer reported $0.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.23). The firm had revenue of $3.94 billion for the quarter, compared to analyst estimates of $4.43 billion. GAP had a return on equity of 24.45% and a net margin of 4.53%. The company’s quarterly revenue was down 1.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.25 earnings per share. On average, analysts forecast that GAP will post 2.19 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 26th. Shareholders of record on Wednesday, January 5th will be issued a dividend of $0.12 per share. The ex-dividend date of this dividend is Tuesday, January 4th. This represents a $0.48 annualized dividend and a yield of 2.69%. GAP’s payout ratio is 24.49%.

In other GAP news, CEO Sonia Syngal sold 6,945 shares of the firm’s stock in a transaction that occurred on Tuesday, November 16th. The shares were sold at an average price of $24.71, for a total transaction of $171,610.95. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 41.39% of the stock is currently owned by company insiders.

Several large investors have recently added to or reduced their stakes in the company. Patriot Financial Group Insurance Agency LLC increased its stake in shares of GAP by 270.0% in the 3rd quarter. Patriot Financial Group Insurance Agency LLC now owns 1,850 shares of the apparel retailer’s stock valued at $42,000 after acquiring an additional 1,350 shares in the last quarter. American International Group Inc. increased its stake in shares of GAP by 1.3% in the 3rd quarter. American International Group Inc. now owns 64,120 shares of the apparel retailer’s stock valued at $1,456,000 after acquiring an additional 840 shares in the last quarter. Bank of New York Mellon Corp increased its stake in shares of GAP by 1.9% in the 3rd quarter. Bank of New York Mellon Corp now owns 1,774,210 shares of the apparel retailer’s stock valued at $40,274,000 after acquiring an additional 32,404 shares in the last quarter. BNP Paribas Arbitrage SA increased its stake in shares of GAP by 53.0% in the 3rd quarter. BNP Paribas Arbitrage SA now owns 641,203 shares of the apparel retailer’s stock valued at $14,555,000 after acquiring an additional 222,203 shares in the last quarter. Finally, Migdal Insurance & Financial Holdings Ltd. bought a new stake in shares of GAP in the 3rd quarter valued at $94,000. Institutional investors own 54.90% of the company’s stock.

About GAP

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections.

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Analyst Recommendations for GAP (NYSE:GPS)

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