GAP Target of Unusually Large Options Trading (NYSE:GAP)

The Gap, Inc. (NYSE:GAP) was the target of unusually large options trading on Monday. Stock traders acquired 21,345 call options on the stock. This represents an increase of approximately 32% compared to the typical volume of 16,115 call options.

GAP Price Performance

Shares of GAP opened at $21.74 on Tuesday. GAP has a twelve month low of $18.54 and a twelve month high of $26.41. The company has a market capitalization of $8.15 billion, a P/E ratio of 10.06, a price-to-earnings-growth ratio of 0.94 and a beta of 2.38. The firm has a 50 day moving average of $22.48 and a 200 day moving average of $22.49. The company has a quick ratio of 0.84, a current ratio of 1.54 and a debt-to-equity ratio of 0.47.

GAP (NYSE:GAP) last posted its earnings results on Thursday, March 6th. The company reported $0.54 EPS for the quarter, topping analysts’ consensus estimates of $0.36 by $0.18. GAP had a return on equity of 29.03% and a net margin of 5.40%. The business had revenue of $4.15 billion during the quarter, compared to analyst estimates of $4.07 billion. As a group, equities research analysts anticipate that GAP will post 2.02 earnings per share for the current fiscal year.

GAP Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 30th. Shareholders of record on Wednesday, April 9th will be paid a dividend of $0.165 per share. The ex-dividend date of this dividend is Wednesday, April 9th. This represents a $0.66 annualized dividend and a yield of 3.04%. This is a boost from GAP’s previous quarterly dividend of $0.15. GAP’s dividend payout ratio is currently 29.86%.

Analysts Set New Price Targets

GAP has been the subject of a number of research analyst reports. Barclays raised their target price on GAP from $32.00 to $33.00 and gave the company an “overweight” rating in a research note on Friday, March 7th. JPMorgan Chase & Co. raised their price objective on GAP from $29.00 to $30.00 and gave the company an “overweight” rating in a research report on Friday, March 7th. Robert W. Baird reduced their target price on shares of GAP from $31.00 to $29.00 and set a “neutral” rating on the stock in a research report on Friday, March 7th. Telsey Advisory Group reissued a “market perform” rating and set a $26.00 price target on shares of GAP in a research report on Friday, March 7th. Finally, Argus upgraded shares of GAP from a “hold” rating to a “buy” rating and set a $27.00 price objective on the stock in a report on Tuesday, January 21st. Five equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $29.25.

Insiders Place Their Bets

In related news, CEO Mark Breitbard sold 16,055 shares of the business’s stock in a transaction dated Friday, March 14th. The shares were sold at an average price of $20.43, for a total transaction of $328,003.65. Following the transaction, the chief executive officer now owns 123,985 shares in the company, valued at $2,533,013.55. The trade was a 11.46 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Katrina O’connell sold 80,029 shares of the firm’s stock in a transaction dated Friday, March 14th. The stock was sold at an average price of $20.35, for a total transaction of $1,628,590.15. Following the completion of the sale, the chief financial officer now owns 8,290 shares of the company’s stock, valued at $168,701.50. This trade represents a 90.61 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 177,495 shares of company stock worth $3,598,459. 31.00% of the stock is currently owned by company insiders.

Institutional Trading of GAP

A hedge fund recently bought a new stake in GAP stock. California State Teachers Retirement System bought a new position in The Gap, Inc. (NYSE:GAP) during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 209,599 shares of the company’s stock, valued at approximately $4,953,000. California State Teachers Retirement System owned about 0.06% of GAP at the end of the most recent quarter. 58.81% of the stock is currently owned by institutional investors.

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.