Gap (GPS) Valuation Check After William Sydney Fisher’s Significant Insider Share Sale
Gap (GPS) is back in the spotlight after long time insider William Sydney Fisher unloaded 400,000 shares, a move that briefly knocked the stock while investors weighed it against the company’s improving fundamentals.
See our latest analysis for Gap.
Despite the brief shock from the insider sale, Gap’s 1 month share price return of 11.32 percent and 3 year total shareholder return of 129.54 percent suggest momentum is still building as supply chain upgrades, fresh collaborations and a stronger holiday marketing push reset expectations around growth and risk.
If this kind of turnaround story has your attention, it could be worth scanning fast growing stocks with high insider ownership to see what other fast moving, high conviction names are emerging on investors’ radars.
With shares now trading just below analyst targets and only a modest intrinsic discount implied by cash flow estimates, the real debate is whether Gap still offers mispriced upside or if the market is already pricing in its comeback.
Most Popular Narrative: 3.5% Undervalued
The most followed narrative sees Gap’s fair value near $27.70 per share versus a last close of $26.74, framing a modestly discounted turnaround.
Fair Value Estimate has risen modestly, increasing from approximately $26.03 per share to about $27.71 per share, reflecting higher long term growth expectations.
Future P or E multiple has risen from around 12.7x to roughly 13.4x, signaling a modest expansion in the valuation multiple applied to forward earnings.
Curious why a mature retailer earns a richer future earnings multiple without explosive growth assumptions, and which margin and cash flow levers justify it? Dig into the full narrative.
Result: Fair Value of $27.71 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent Athleta underperformance and elevated inventories, which risk heavier discounting, could quickly challenge assumptions about sustainable margin recovery and valuation upside.
Find out about the key risks to this Gap narrative.
Build Your Own Gap Narrative
If you are not fully convinced by this perspective or simply prefer crunching the numbers yourself, you can build a personalized view in minutes: Do it your way.
A great starting point for your Gap research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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