The Gap, Inc. (NYSE:GPS) Short Interest Update

The Gap, Inc. (NYSE:GPS) saw a large increase in short interest in the month of July. As of July 15th, there was short interest totalling 38,910,000 shares, an increase of 11.4% from the June 30th total of 34,940,000 shares. Based on an average daily volume of 7,990,000 shares, the days-to-cover ratio is presently 4.9 days. Currently, 17.4% of the company’s shares are sold short.

GAP Stock Performance

GPS stock traded up $0.80 during midday trading on Monday, reaching $22.24. 7,650,189 shares of the company’s stock traded hands, compared to its average volume of 7,758,452. GAP has a 52-week low of $9.38 and a 52-week high of $30.75. The stock has a market cap of $8.34 billion, a P/E ratio of 12.36, a PEG ratio of 3.63 and a beta of 2.39. The company has a current ratio of 1.50, a quick ratio of 0.80 and a debt-to-equity ratio of 0.55. The stock’s 50-day moving average is $23.84 and its 200 day moving average is $22.39.

GAP (NYSE:GPS) last announced its earnings results on Thursday, May 30th. The apparel retailer reported $0.41 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.27. GAP had a net margin of 4.52% and a return on equity of 27.57%. The business had revenue of $3.39 billion during the quarter, compared to analysts’ expectations of $3.29 billion. During the same period in the prior year, the company earned $0.01 earnings per share. The firm’s revenue was up 3.4% on a year-over-year basis. As a group, analysts anticipate that GAP will post 1.75 EPS for the current year.

GAP Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 31st. Stockholders of record on Wednesday, July 10th will be paid a $0.15 dividend. The ex-dividend date of this dividend is Wednesday, July 10th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.70%. GAP’s dividend payout ratio (DPR) is presently 33.33%.

Wall Street Analyst Weigh In

GPS has been the topic of several research analyst reports. The Goldman Sachs Group boosted their price target on shares of GAP from $24.00 to $25.00 and gave the company a “buy” rating in a research report on Thursday, April 25th. Evercore ISI boosted their price objective on shares of GAP from $24.00 to $32.00 and gave the stock an “outperform” rating in a research note on Friday, May 31st. Barclays boosted their price objective on shares of GAP from $28.00 to $31.00 and gave the stock an “overweight” rating in a research note on Monday, June 3rd. TD Cowen raised shares of GAP from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $28.00 to $30.00 in a research note on Tuesday, June 25th. Finally, Daiwa America raised shares of GAP to a “moderate buy” rating in a research note on Wednesday, June 5th. One analyst has rated the stock with a sell rating, six have given a hold rating and ten have given a buy rating to the company’s stock. According to data from MarketBeat.com, GAP presently has an average rating of “Moderate Buy” and a consensus price target of $26.11.

Insider Buying and Selling

In other GAP news, Director Tracy Gardner sold 2,934 shares of the business’s stock in a transaction dated Monday, July 1st. The shares were sold at an average price of $23.48, for a total value of $68,890.32. Following the transaction, the director now owns 51,901 shares in the company, valued at $1,218,635.48. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In other GAP news, Director Tracy Gardner sold 2,934 shares of the business’s stock in a transaction dated Monday, July 1st. The shares were sold at an average price of $23.48, for a total value of $68,890.32. Following the transaction, the director now owns 51,901 shares in the company, valued at $1,218,635.48. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Katrina O’connell sold 20,000 shares of the business’s stock in a transaction dated Friday, May 31st. The shares were sold at an average price of $29.01, for a total transaction of $580,200.00. The disclosure for this sale can be found here. Insiders have sold a total of 23,132 shares of company stock worth $654,003 in the last 90 days. 30.81% of the stock is owned by company insiders.

Institutional Trading of GAP

Hedge funds and other institutional investors have recently modified their holdings of the company. Hennessy Advisors Inc. boosted its position in shares of GAP by 32.6% during the second quarter. Hennessy Advisors Inc. now owns 3,056,100 shares of the apparel retailer’s stock worth $73,010,000 after acquiring an additional 750,500 shares during the last quarter. SG Americas Securities LLC bought a new position in shares of GAP during the second quarter worth $5,643,000. BNP Paribas Financial Markets boosted its position in shares of GAP by 33.0% during the fourth quarter. BNP Paribas Financial Markets now owns 367,130 shares of the apparel retailer’s stock worth $7,677,000 after acquiring an additional 91,151 shares during the last quarter. Bank of New York Mellon Corp boosted its position in shares of GAP by 3.6% during the second quarter. Bank of New York Mellon Corp now owns 2,469,693 shares of the apparel retailer’s stock worth $59,001,000 after acquiring an additional 86,224 shares during the last quarter. Finally, Pinkerton Retirement Specialists LLC bought a new position in shares of GAP during the fourth quarter worth $614,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

GAP Company Profile

The Gap, Inc operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include adult apparel and accessories; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls.