Metric Deep Dive: Understanding Gap, Inc. (GAP) Through its Ratios

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After finishing at $20.01 in the prior trading day, Gap, Inc. (NYSE: GAP) closed at $19.73, down -1.40%. In other words, the price has decreased by -$1.40 from its previous closing price. On the day, 7.74 million shares were traded. GAP stock price reached its highest trading level at $20.35 during the session, while it also had its lowest trading level at $19.69.

Ratios:

Our goal is to gain a better understanding of GAP by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 3.46 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 6.29. For the most recent quarter (mrq), Quick Ratio is recorded 0.84 and its Current Ratio is at 1.49. In the meantime, Its Debt-to-Equity ratio is 1.88 whereas as Long-Term Debt/Eq ratio is at 1.67.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Telsey Advisory Group on August 30, 2024, Reiterated its Market Perform rating but revised its target price to $26 from $29 previously.

On July 31, 2024, BofA Securities Upgraded its rating to Neutral which previously was Underperform and also upped its target price recommendation from $18.50 to $25.

Morgan Stanley Upgraded its Equal-Weight to Overweight on July 18, 2024, whereas the target price for the stock was revised from $27 to $29.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Sep 03 ’24 when Barbeito Horacio sold 311 shares for $22.19 per share. The transaction valued at 6,894 led to the insider holds 75,385 shares of the business.

Gilligan Sarah sold 12,000 shares of GAP for $300,000 on Aug 23 ’24. The Chief Sup Chn & Transform Ofcr now owns 0 shares after completing the transaction at $25.00 per share. On Aug 23 ’24, another insider, Breitbard Mark, who serves as the President & CEO, Gap Brand of the company, sold 93,808 shares for $25.00 each. As a result, the insider received 2,345,200 and left with 123,985 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, GAP now has a Market Capitalization of 7424734208 and an Enterprise Value of 10737732608. As of this moment, Gap,’s Price-to-Earnings (P/E) ratio for their current fiscal year is 9.78, and their Forward P/E ratio for the next fiscal year is 9.71. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.68. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.49 while its Price-to-Book (P/B) ratio in mrq is 2.56. Its current Enterprise Value per Revenue stands at 0.708 whereas that against EBITDA is 7.34.

Stock Price History:

Over the past 52 weeks, GAP has reached a high of $30.75, while it has fallen to a 52-week low of $9.71. The 50-Day Moving Average of the stock is -13.56%, while the 200-Day Moving Average is calculated to be -10.79%.

Shares Statistics:

The stock has traded on average 6.59M shares per day over the past 3-months and 7780370 shares per day over the last 10 days, according to various share statistics. A total of 372.00M shares are outstanding, with a floating share count of 225.48M. Insiders hold about 40.54% of the company’s shares, while institutions hold 63.61% stake in the company. Shares short for GAP as of 1723680000 were 29970826 with a Short Ratio of 4.55, compared to 1721001600 on 38906621. Therefore, it implies a Short% of Shares Outstanding of 29970826 and a Short% of Float of 15.32.

Dividends & Splits

In the trailing 12 months, GAP’s forward annual dividend rate was 0.6, compared to 0.60 this year. Against a Trailing Annual Dividend Yield of 0.029985009The stock’s 5-year Average Dividend Yield is 4.21.

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