GPS

Evercore ISI Group Initiates Coverage of Gap (GPS) with Outperform Recommendation

Fintel reports that on November 7, 2023, Evercore ISI Group initiated coverage of Gap (NYSE:GPS) with a Outperform recommendation.

Analyst Price Forecast Suggests 16.16% Downside

As of October 31, 2023, the average one-year price target for Gap is 11.59. The forecasts range from a low of 6.06 to a high of $18.90. The average price target represents a decrease of 16.16% from its latest reported closing price of 13.83.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Gap is 16,166MM, an increase of 7.02%. The projected annual non-GAAP EPS is 0.78.

Gap Declares $0.15 Dividend

On August 16, 2023 the company declared a regular quarterly dividend of $0.15 per share ($0.60 annualized). Shareholders of record as of October 4, 2023 received the payment on October 25, 2023. Previously, the company paid $0.15 per share.

At the current share price of $13.83 / share, the stock's dividend yield is 4.34%.

Looking back five years and taking a sample every week, the average dividend yield has been 4.58%, the lowest has been 1.32%, and the highest has been 7.57%. The standard deviation of yields is 1.60 (n=178).

The current dividend yield is 0.15 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 2.05. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

What is the Fund Sentiment?

There are 658 funds or institutions reporting positions in Gap. This is an increase of 7 owner(s) or 1.08% in the last quarter. Average portfolio weight of all funds dedicated to GPS is 0.10%, a decrease of 7.70%. Total shares owned by institutions increased in the last three months by 3.32% to 277,998K shares. GPS / Gap, Inc. Put/Call Ratios The put/call ratio of GPS is 0.80, indicating a bullish outlook.

What are Other Shareholders Doing?

GPS / Gap, Inc. Shares Held by Institutions

Dodge & Cox holds 37,478K shares representing 10.13% ownership of the company. In it's prior filing, the firm reported owning 37,722K shares, representing a decrease of 0.65%. The firm decreased its portfolio allocation in GPS by 13.46% over the last quarter.

DODGX - Dodge & Cox Stock Fund holds 26,730K shares representing 7.23% ownership of the company. In it's prior filing, the firm reported owning 26,632K shares, representing an increase of 0.37%. The firm decreased its portfolio allocation in GPS by 14.41% over the last quarter.

Pzena Investment Management holds 10,165K shares representing 2.75% ownership of the company. In it's prior filing, the firm reported owning 10,644K shares, representing a decrease of 4.71%. The firm decreased its portfolio allocation in GPS by 16.02% over the last quarter.

Arrowstreet Capital, Limited Partnership holds 9,060K shares representing 2.45% ownership of the company. In it's prior filing, the firm reported owning 7,095K shares, representing an increase of 21.69%. The firm increased its portfolio allocation in GPS by 6.68% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,747K shares representing 2.36% ownership of the company. In it's prior filing, the firm reported owning 7,308K shares, representing an increase of 16.45%. The firm decreased its portfolio allocation in GPS by 1.78% over the last quarter.

Gap Background Information
(This description is provided by the company.)

Gap Inc., a collection of purpose-led lifestyle brands, is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Janie and Jack brands. Fiscal year 2019 net sales were $16.4 billion. Gap Inc. products are available for purchase worldwide through company-operated stores, franchise stores, and e-commerce sites.

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This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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