Stock of The Gap Inc. (GPS) performance and profitability takes another direction

A share price of The Gap Inc. [GPS] is currently trading at $13.32, down -1.19%. In order to assess the stock’s recent performance, you can check whether its short-term value is rising or falling. The GPS shares have gain 3.82% over the last week, with a monthly amount glided 11.56%, and seem to be holding up well over a long-time horizon.

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On 17, November 2022, Gap Inc. Reports Third Quarter Fiscal 2022 Results. In a post published today on Yahoo Finance, Gap Inc. (NYSE: GPS), a portfolio of purpose-led, billion-dollar lifestyle brands including Old Navy, Gap, Banana Republic, and Athleta, and the largest specialty apparel company in the U.S., today reported financial results for its third quarter ended October 29, 2022.

From an analyst’s perspective:

The Gap Inc. [NYSE: GPS] stock has seen the most recent analyst activity on January 18, 2023, when Morgan Stanley upgraded its rating to a Equal-Weight. Previously, UBS downgraded its rating to Sell on January 05, 2023, and kept the price target unchanged to $7. On December 12, 2022, upgrade upgraded it’s rating to Buy but maintained its price target of $18 on the stock. Barclays upgraded its rating to a Equal Weight and increased its price target to $9 on August 30, 2022. Deutsche Bank downgraded its rating to Hold for this stock on July 13, 2022, and downed its price target to $9. In a note dated July 12, 2022, Wells Fargo downgraded an Equal Weight rating on this stock and revised its target price from $16 to $10.

The Gap Inc. experienced fluctuations in its stock price throughout the past year between $7.79 and $18.46. Currently, Wall Street analysts expect the stock to reach $11.93 within the next 12 months. The Gap Inc. [NYSE: GPS] shares were valued at $13.32 at the most recent close of the market. An investor can expect a potential drop of -10.44% based on the average GPS price forecast.

Analyzing the GPS fundamentals

During the last quarter, The Gap Inc. [NYSE:GPS] saw sales of 4.04 billion, an improvement of 2.40%. Gross Margin for this corporation currently stands at +39.90% with Operating Margin at +4.79%, Pretax Margin comes in at +1.94%, and Net Margin reading is +1.54%.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 13.19 points at the first support level, and at 13.06 for the second support level. However, for the 1st resistance point, the stock is sitting at 13.55, and for the 2nd resistance point, it is at 13.78.

The Gap Inc. [GPS] reported earnings per share of $0.08 for its fiscal quarter that ended on 7/30/2022. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of -$0.05/share, meaning a difference of $0.13 and a surprise factor of 260.00%. By comparison, the stated earnings for the previous quarter ended on 4/29/2022 were -$0.44 per share as compared to estimates of -$0.13 per share, a difference of -$0.31 representing a surprise of -238.50%.

Ratios To Look Out For

A current ratio of 1.50 is a noteworthy aspect of The Gap Inc. [NYSE:GPS]. In addition, the Quick Ratio stands at 0.53 and the Cash Ratio stands at 0.22. Considering the valuation of this stock, the price to sales ratio is 0.41, the price to book ratio is 2.42 and the P/E (TTM) ratio is 123.33.

Transactions by insiders

In the past 3 months, 3 insiders have purchased 48,666 shares, and 6 have sold 73,867 shares. Recent insider trading involved Breitbard Mark, President & CEO, Gap Brand, that happened on Dec 21 when 7311.0 shares were sold. EVP CFO, O’Connell Katrina completed a deal on Nov 18 to sell 31294.0 shares. Meanwhile, President & CEO, Athleta Laughton Mary Beth sold 11030.0 shares on Oct 31.