The stock of The Gap, Inc. (NYSE:GPS) is now priced at $17.39 and the shares are -0.15 points down or -0.86% lower compared to its previous closing price of $17.54. The stock had 8.043 million contracts set over the past session. GPS shares’ daily volume is compared to its average trading volume at 15.988 million shares. However, it has a float of 208 million and although its performance was 12.19% over the week, it’s one to watch. Analysts have given the GPS stock a yearly average price target of $11.11 per share. It means the stock’s downside potential is -36.11% with the GPS share price recently placing at $17.302 to $17.85. However, some brokerage firms have priced the stock below the average, including one that has called $6.
The shorts are running away from the The Gap, Inc. stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the GPS shares have declined. Short interest in the stock represents just 16.77% of its float, but the volume has dropped by 0.
In the last trading session, The Gap, Inc. (NYSE:GPS) raised by $1.89 over the week and gained $4.28 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $19.86. The stock recorded its established 52-week high on 09/12/19.
Since 04/02/20, the stock has traded to a low of $5.26 at 230.61%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.63. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, The Gap, Inc.’s two-week RSI is 72.31. This suggests that the stock is oversold at the moment and that GPS shares’ price movement remains not stable. The stochastic readings are equally revealing at 86.69% meaning the GPS share price is currently in oversold territory.
The technical chart shows that the GPS stock will likely settle at between $17.73 and $18.06 per share. However, if the stock dips below $17.18, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $16.97.
Currently, the stock is trading in the green of MACD, with a reading of 1.23. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at BofA Securities raised their recommendation for GPS from Underperform to Neutral in August 28 review while maintain their target price of $18. Telsey Advisory Group analysts see the stock as a Market Perform, but they also raised the share’s target price from $10 to $17 in a flash note released to investors on August 28. Citigroup seeing the improvements upgraded the stock from Neutral to Buy on August 25, placing it at $12 to $24.
The average rating for the GPS equity is 3.09 and is currently gathering a bearish momentum. Of 23 analysts tracking The Gap, Inc. polled by Reuters, 16 rated GPS as a hold. The remaining 7 analysts were split evenly. However, the split wasn’t equal as a majority (3) rated it as a buy or strong buy. 4 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the GPS stock price is 15.87X ahead of its 12-month Consensus earnings per share estimates.
Zacks Consensus Estimate forecasts that the current-quarter revenues for The Gap, Inc. (NYSE:GPS) will increase by about 13.28%, which will see them reach $3710 million. The company’s full-year revenues are, however, expected to diminish by about -18.07%, down from $16400 million to $13400 million. GPS’s expected adjusted earnings should drop almost -52.83% to end up at $0.25 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -210.15% to record -$2.17/share.