GAP slips on UBS Downgrade

By Susan Ramirez • Thursday, January 05 15:01 • Permanent Link

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.