Traders Buy Large Volume of GAP Put Options (NYSE:GAP)

The Gap, Inc. (NYSE:GAP) was the recipient of unusually large options trading on Wednesday. Investors bought 27,840 put options on the stock. This is an increase of 70% compared to the typical daily volume of 16,398 put options.

GAP Price Performance

GAP stock traded up $1.19 during midday trading on Wednesday, reaching $22.41. 6,245,715 shares of the stock were exchanged, compared to its average volume of 6,476,170. GAP has a 52 week low of $18.54 and a 52 week high of $26.41. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.84 and a current ratio of 1.54. The firm has a market cap of $8.40 billion, a PE ratio of 10.38, a PEG ratio of 0.94 and a beta of 2.14. The company’s fifty day moving average is $22.20 and its 200-day moving average is $22.53.

GAP (NYSE:GAP) last announced its quarterly earnings data on Thursday, March 6th. The company reported $0.54 EPS for the quarter, beating the consensus estimate of $0.36 by $0.18. The firm had revenue of $4.15 billion for the quarter, compared to analyst estimates of $4.07 billion. GAP had a return on equity of 29.03% and a net margin of 5.40%. On average, sell-side analysts forecast that GAP will post 2.02 EPS for the current year.

GAP Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 30th. Investors of record on Wednesday, April 9th will be issued 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 dividend yield of 2.95%. This is a positive change from GAP’s previous quarterly dividend of $0.15. GAP’s dividend payout ratio (DPR) is currently 29.86%.

Insiders Place Their Bets

In other GAP news, CFO Katrina O’connell sold 2,365 shares of the firm’s stock in a transaction that occurred on Tuesday, March 18th. The shares were sold at an average price of $19.59, for a total transaction of $46,330.35. Following the completion of the transaction, the chief financial officer now owns 8,503 shares in the company, valued at approximately $166,573.77. This trade represents a 21.76 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Mark Breitbard sold 3,393 shares of the company’s stock in a transaction on Tuesday, March 18th. The shares were sold at an average price of $19.58, for a total transaction of $66,434.94. Following the completion of the sale, the chief executive officer now directly owns 133,341 shares in the company, valued at approximately $2,610,816.78. This represents a 2.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 177,495 shares of company stock valued at $3,598,459. 31.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On GAP

A hedge fund recently bought a new stake in GAP stock. California State Teachers Retirement System acquired a new stake in shares of The Gap, Inc. (NYSE:GAP) in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 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 owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

GAP has been the topic of a number of research analyst reports. JPMorgan Chase & Co. upped their price target on shares of 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 cut their target price on GAP from $31.00 to $29.00 and set a “neutral” rating on the stock in a research report on Friday, March 7th. Argus upgraded GAP from a “hold” rating to a “buy” rating and set a $27.00 target price for the company in a report on Tuesday, January 21st. UBS Group cut their price target on GAP from $26.00 to $25.00 and set a “neutral” rating on the stock in a report on Monday, March 10th. Finally, Barclays lifted their price objective on shares of GAP from $32.00 to $33.00 and gave the company an “overweight” rating in a research note on Friday, March 7th. Five research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $29.25.

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.