A Reversal for Gap Inc Is Not Near. Professional Options Traders Are Bullish

 A Reversal for Gap Inc Is Not Near. Professional Options Traders Are Bullish

In today’s session Gap Inc (GPS) registered an unusually high (557) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the January, 2017 call, expecting serious GPS increase. With 557 contracts traded and 8934 open interest for the Jan, 17 contract, it seems this is a quite bullish bet. The option with symbol: GPS170120C00026000 closed last at: $1.18 or 1.7% down. About 543,719 shares traded hands. Gap Inc (NYSE:GPS) has risen 5.30% since April 27, 2016 and is uptrending. It has outperformed by 0.07% the S&P500.

Analysts await Gap Inc (NYSE:GPS) to report earnings on February, 23. They expect $0.44 earnings per share, down 22.81% or $0.13 from last year’s $0.57 per share. GPS’s profit will be $173.70M for 14.36 P/E if the $0.44 EPS becomes a reality. After $0.60 actual earnings per share reported by Gap Inc for the previous quarter, Wall Street now forecasts -26.67% negative EPS growth.

Gap Inc (NYSE:GPS) Ratings Coverage

Out of 32 analysts covering The Gap Inc. (NYSE:GPS), 4 rate it a “Buy”, 7 “Sell”, while 21 “Hold”. This means 13% are positive. $48 is the highest target while $16 is the lowest. The $28.19 average target is 11.51% above today’s ($25.28) stock price. The Gap Inc. has been the topic of 112 analyst reports since August 5, 2015 according to StockzIntelligence Inc. The firm has “Neutral” rating by M Partners given on Friday, January 8. The stock has “Underperform” rating given by Mizuho on Friday, November 20. The company was maintained on Friday, May 20 by Telsey Advisory Group. The firm has “Buy” rating given on Tuesday, August 11 by Stifel Nicolaus. The firm has “Neutral” rating given on Friday, November 18 by Wedbush. Jefferies maintained the stock with “Buy” rating in Friday, August 19 report. The rating was maintained by Telsey Advisory Group on Friday, November 20 with “Market Perform”. On Friday, October 9 the stock rating was maintained by Topeka Capital Markets with “Buy”. Wedbush maintained Gap Inc (NYSE:GPS) on Friday, November 20 with “Neutral” rating. Deutsche Bank upgraded it to “Hold” rating and $24 target price in Friday, October 7 report.

According to Zacks Investment Research, “The Gap, Inc. is a global specialty retailer which operates stores selling casual apparel, personal care and other accessories for men, women and children under the Gap, Banana Republic and Old Navy brands. The company designs virtually all of its products, which in turn are manufactured by independent sources, and sells them under its brand names.”

Insitutional Activity: The institutional sentiment decreased to 0.91 in Q2 2016. Its down 0.20, from 1.11 in 2016Q1. The ratio dived, as 67 funds sold all Gap Inc shares owned while 109 reduced positions. 56 funds bought stakes while 140 increased positions. They now own 219.06 million shares or 4.71% less from 229.88 million shares in 2016Q1.
First Interstate Bancorporation has 1,207 shares for 0.01% of their US portfolio. Stratos Wealth Limited accumulated 13,757 shares or 0.02% of the stock. Advantus Capital holds 21,945 shares or 0.01% of its portfolio. Hall Kathryn A reported 3.39 million shares or 94.68% of all its holdings. Piedmont Investment Advsr Lc holds 6 shares or 0% of its portfolio. Metropolitan Life Insur Company New York has 0.02% invested in the company for 118,784 shares. The Ohio-based Johnson Invest Counsel has invested 0.01% in Gap Inc (NYSE:GPS). Schwab Charles Inv Mgmt holds 0.03% of its portfolio in Gap Inc (NYSE:GPS) for 1.08 million shares. Parkside Bancshares & Trust reported 59 shares or 0% of all its holdings. Financial Bank Of America De holds 0.01% of its portfolio in Gap Inc (NYSE:GPS) for 2.69M shares. Nj State Employees Deferred Compensation Plan has 0.23% invested in the company for 50,000 shares. Huntington Natl Bank last reported 3,427 shares in the company. Checchi Capital Advisers Limited Liability reported 3,477 shares or 0.01% of all its holdings. Fil Ltd owns 1.03 million shares or 0.07% of their US portfolio. Bb&T Securities Ltd Company accumulated 40,575 shares or 0.01% of the stock.

Insider Transactions: Since November 21, 2016, the stock had 0 buys, and 2 selling transactions for $458,538 net activity. 11,406 shares with value of $289,484 were sold by Kirwan Jeff on Monday, November 21. 6,764 shares with value of $169,054 were sold by Chapman Paul Joseph on Monday, November 21.

The Gap, Inc. is an apparel retail company. The company has a market cap of $9.98 billion. The Firm offers apparel, accessories and personal care products for men, women and children under the Gap, Banana Republic, Old Navy, Athleta and Intermix brands. It has a 15.12 P/E ratio. The Company’s products are available to clients online through Company-owned Websites and through the use of third-parties that provide logistics and fulfillment services.

GPS Company Profile

The Gap, Inc. (Gap Inc.), incorporated on April 15, 1988, is an apparel retail company. The Firm offers apparel, accessories and personal care products for men, women and children under the Gap, Banana Republic, Old Navy, Athleta and Intermix brands. The Company’s products are available to clients online through Company-owned Websites and through the use of third-parties that provide logistics and fulfillment services. It also sells products that are designed and manufactured by branded third-parties, especially at its Intermix brands. The Company’s divisions include Gap Global, Old Navy Global, Banana Republic Global, Athleta and Intermix. The Company’s omni-channel services, including order-in-store, reserve-in-store, find-in-store and ship-from-store, are tailored across its portfolio of brands. Gap Inc. has Company-operated stores in the United States, Canada, the United Kingdom, France, Ireland, Japan, Italy, China, Taiwan and Hong Kong. It operates Gap, Banana Republic and Old Navy stores throughout Asia, Australia, Europe, Latin America, the Middle East and Africa.

More notable recent Gap Inc (NYSE:GPS) news were published by: Wsj.com which released: “As Gap Struggles, Its Analytical CEO Prizes Data Over Design” on November 27, 2016, also Prnewswire.com with their article: “Gap, in Partnership with (RED), Launches Limited-Edition Collection of Utility …” published on November 29, 2016, Fool.com published: “Why Shares of Gap Inc. Slumped Today” on November 18, 2016. More interesting news about Gap Inc (NYSE:GPS) were released by: Fortune.com and their article: “Gap Shares Are Way up Despite Decline in Sales” published on November 07, 2016 as well as Bizjournals.com‘s news article titled: “Former P&G treasurer hired as Gap Inc. CFO” with publication date: November 16, 2016.

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