FBR & Co Reiterates “$28.00” Price Target for Gap Inc (GPS)

Gap Inc (NYSE:GPS) has been assigned a $28.00 price target by research analysts at FBR & Co in a research report issued to clients and investors on Friday. The firm presently has a “hold” rating on the apparel retailer’s stock. FBR & Co’s price target points to a potential upside of 20.74% from the stock’s current price.

The analysts wrote, “GPS reported 1Q17 adjusted EPS of $0.36, versus FBR/consensus of $0.29, on SSS of +2% (versus FBR/consensus of 0.4%/–0.1%), GM expansion of +271 bps (versus FBR/consensus +50 bps/+30 bps), and SGA de-leverage of –179 bps (versus FBR/ consensus –100 bps/–80 bps). Management reiterated 2017 EPS guidance of $1.95 to $2.05 (versus FBR/consensus of $2.00/$1.99) on SSS of flat/slightly up, though EPS for 1H17 should be –MSD, versus –HSD previously. AUR was positive across all brands in 1Q, and we believe GPS has been able to pull back on promos to help drive AUR/margins. 1H17 inventory guidance shifted to flat from –LSD previously, mainly driven by timing. We like the strong ON performance, which we believe can continue, but we remain on the sidelines until we see consistent SSS improvement at Gap and sustained gross margin improvement or a more attractive entry point.””

GPS has been the topic of several other research reports. Vetr cut shares of Gap from a “buy” rating to a “hold” rating and set a $24.84 target price on the stock. in a report on Thursday, April 20th. Jefferies Group LLC reissued a “buy” rating and set a $34.00 price objective on shares of Gap in a report on Tuesday, March 28th. MKM Partners reissued a “neutral” rating and set a $28.00 price objective on shares of Gap in a report on Tuesday, February 7th. TheStreet raised shares of Gap from a “c” rating to a “b-” rating in a report on Thursday, April 20th. Finally, ValuEngine raised shares of Gap from a “buy” rating to a “strong-buy” rating in a report on Wednesday. Three investment analysts have rated the stock with a sell rating, twenty-three have assigned a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average price target of $25.71.

Analyst Recommendations for Gap (NYSE:GPS)

Gap (NYSE:GPS) traded down 3.49% on Friday, hitting $22.38. 12,202,173 shares of the company traded hands. The firm has a market capitalization of $8.95 billion, a P/E ratio of 13.24 and a beta of 0.99. The stock’s 50-day moving average is $24.97 and its 200 day moving average is $24.74. Gap has a 12 month low of $17.31 and a 12 month high of $30.74. Gap also was the recipient of some unusual options trading activity on Thursday. Stock investors acquired 31,496 put options on the stock. This is an increase of approximately 695% compared to the typical daily volume of 3,964 put options.

Gap (NYSE:GPS) last issued its earnings results on Thursday, May 18th. The apparel retailer reported $0.36 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.29 by $0.07. The firm had revenue of $3.44 billion for the quarter, compared to analysts’ expectations of $3.39 billion. Gap had a net margin of 4.33% and a return on equity of 32.19%. The firm’s revenue was up .1% compared to the same quarter last year. During the same quarter last year, the company earned $0.32 earnings per share. Equities analysts forecast that Gap will post $1.99 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 26th. Stockholders of record on Wednesday, July 5th will be paid a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.97%. Gap’s dividend payout ratio is currently 55.09%.

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In other news, CEO Jeff Kirwan sold 5,000 shares of the business’s stock in a transaction dated Tuesday, May 16th. The stock was sold at an average price of $24.88, for a total transaction of $124,400.00. Following the completion of the sale, the chief executive officer now owns 29,548 shares in the company, valued at approximately $735,154.24. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Robert J. Fisher sold 500,000 shares of the business’s stock in a transaction dated Friday, March 31st. The stock was sold at an average price of $24.58, for a total value of $12,290,000.00. Following the sale, the director now owns 8,867,728 shares of the company’s stock, valued at approximately $217,968,754.24. The disclosure for this sale can be found here. Corporate insiders own 30.00% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. Ameritas Investment Partners Inc. purchased a new stake in shares of Gap during the first quarter worth about $127,000. Penserra Capital Management LLC boosted its stake in shares of Gap by 9.5% in the first quarter. Penserra Capital Management LLC now owns 5,980 shares of the apparel retailer’s stock worth $145,000 after buying an additional 520 shares during the last quarter. Yorktown Management & Research Co Inc purchased a new stake in shares of Gap during the first quarter worth about $211,000. Foster & Motley Inc. purchased a new stake in shares of Gap during the first quarter worth about $217,000. Finally, Folger Hill Asset Management LP purchased a new stake in shares of Gap during the fourth quarter worth about $225,000. Institutional investors and hedge funds own 57.87% of the company’s stock.

Gap Company Profile

The Gap, Inc (Gap Inc) is an apparel retail company. The Company offers apparel, accessories and personal care products for men, women and children under the Gap, Banana Republic, Old Navy, Athleta and Intermix brands. Its products are available to customers online through Company-owned Websites and through the use of third-parties that provide logistics and fulfillment services.

5 Day Chart for NYSE:GPS

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