Gap investors were likely spooked this afternoon by Barrons's report: "Gap and Victoria's Secret Receive Downgrade From UBS." For more coverage, read the full article here. On the back of this news, Gap sank -2.8% to a price of $11.45. Are the markets overreacting?
The Gap, Inc. operates as an apparel retail company. The company belongs to the Consumer Cyclical sector, which has an average price to earnings (P/E) ratio of 24.11 and an average price to book (P/B) ratio of 3.11. In contrast, Gap has a trailing 12 month P/E ratio of 76.3 and a P/B ratio of 1.6.
Gap has moved -36.5% over the last year compared to -18.0% for the S&P 500 -- a difference of -18.6%. Gap has a 52 week high of $18.98 and a 52 week low of $7.79. At today's price of $11.45 per share, Gap is -6.65% away from its target price of $12.26, and on average, analysts give the stock a rating of hold. 22.5% of the company's shares are linked to short positions, and 59.3% of the shares are owned by institutional investors.