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SAN FRANCISCO—Chris Blakeslee, President and CEO of Athleta, a division of Gap Inc. (NYSE:GAP), recently executed a significant stock sale, according to a recent SEC filing. The transaction comes as Gap shares trade near their 52-week low of $18.54, with InvestingPro data showing the stock has declined over 8% in the past week alone. The transaction involved the sale of 16,980 shares of Gap Inc. common stock at an average price of $19.5819 per share, amounting to a total of approximately $332,500. This transaction was carried out under a pre-determined Rule 10b5-1 trading plan, which Blakeslee adopted in September 2024. Despite recent price volatility, Gap maintains solid fundamentals with an overall "GOOD" financial health score according to InvestingPro analysis.
In addition to the stock sale, Blakeslee also engaged in other stock transactions. He exercised options to acquire 16,041 shares of common stock at no cost and disposed of 5,739 shares to cover tax obligations at $20.1 per share, totaling approximately $115,353. Following these transactions, Blakeslee holds a total of 82,341.476 shares directly.
These actions reflect ongoing portfolio management by Blakeslee as he continues to oversee operations at Athleta, while maintaining a significant stake in Gap Inc.
In other recent news, Gap Inc. reported a strong fourth-quarter performance, with earnings per share (EPS) reaching $0.54, exceeding expectations of $0.38. The company’s revenues for the quarter were $4.15 billion, surpassing estimates by $79 million. Analyst firm Evercore ISI maintained an Outperform rating on Gap, setting a price target of $30, while CFRA upgraded the stock to Strong Buy and also set a $30 target. BMO Capital Markets, however, kept its Market Perform rating with a $25 target, noting Gap’s solid earnings beat and EBIT growth forecast for FY25.
Gap’s recent financial results showed improvements across its brands, except for Athleta, which did not meet expectations. The company’s gross margin improved by 250 basis points year-over-year to 41.3%, attributed to decreased commodity and rent costs. Looking forward, Gap has projected revenue growth of 1% to 2% and an operating margin between 8% and 10%. Evercore ISI highlighted Gap’s successful marketing strategies and partnerships with celebrities like Timothée Chalamet, which have boosted brand visibility.
The company also announced updates to its incentive plans for employees and directors to align their interests with those of shareholders. These developments reflect Gap’s strategic efforts to enhance its brand appeal and operational efficiency, which analysts view as steps toward sustainable growth.
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