Horacio Barbeito, the President & Chief Executive Officer of Old Navy, a division of Gap Inc (GPS, Financial), has sold 23,640 shares of the company on March 22, 2024, according to a recent SEC filing. The transaction was executed at an average price of $28.18 per share, resulting in a total value of $665,795.20.
Gap Inc, headquartered in San Francisco, California, is a global retailer offering clothing, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Athleta, and Intermix brands. The company operates in both the specialty and outlet store markets, as well as online.
Over the past year, Horacio Barbeito has engaged in the sale of 179,847 shares of Gap Inc and has not made any purchases of the stock. The insider's recent sale further aligns with the overall insider trading trend for the company, which has seen 25 insider sells and no insider buys over the past year.
On the valuation front, Gap Inc's shares were trading at $28.18 on the day of the insider's sale, giving the company a market capitalization of $10.424 billion. The price-earnings ratio of the company stands at 20.83, which is above the industry median of 18.39 and also higher than Gap Inc's historical median price-earnings ratio.
The stock's price relative to the GuruFocus Value (GF Value) indicates that Gap Inc is significantly overvalued. With a share price of $28.18 and a GF Value of $12.73, the price-to-GF-Value ratio is 2.21.
The GF Value is a proprietary intrinsic value estimate from GuruFocus, which is calculated based on historical trading multiples, a GuruFocus adjustment factor for past returns and growth, and future business performance estimates provided by Morningstar analysts.
Investors and analysts often monitor insider trading patterns as an indicator of management's perspective on the company's future performance. The recent sale by the insider may attract attention from the market, considering the company's valuation metrics and the current price-to-GF-Value ratio.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
