The Gap, Inc. (NYSE:GPS) operates as an apparel retail company worldwide. It offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, Athleta, and Intermix brands.
Insider selling during the last 30 days
Here is a table of Gap's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Sabrina Simmons||CFO||March 12-19||110,987||Yes||113,233 shares + 90,000 options||35.3%|
|Mayo Shattuck||Director||March 12||2,000||No||71,401 shares||2.7%|
|Colin Funnell||EVP||March 12||12,500||No||55,243 shares + 25,000 options||13.5%|
There have been 125,487 shares sold by insiders during the last 30 days. Sabrina Simmons sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.
Insider selling by calendar month
Here is a table of Gap's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 4,649,483 shares sold, and there have been zero shares purchased by insiders since January 2013.
Gap reported the fiscal 2013 full-year, which ended February 1, financial results on February 27 with the following highlights:
|Net income||$1.3 billion|
The three insiders sold their shares after these results.
Gap had a negative quarterly revenue growth year-over-year in the fourth quarter.
Gap expects earnings per share to be in the range of $2.90 to $2.95 for fiscal year 2014.
|Qtrly Rev Growth (yoy):||-0.03||-0.06||-0.12||0.09|
|PEG (5 yr expected):||1.04||4.45||0.88||2.34|
Gap has the second-highest P/S ratio among these four companies.
Here is a table of these competitors' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Gap has seen intensive insider selling during the last 30 days.
There have been three different insiders selling Gap, and there have not been any insiders buying Gap during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. Gap has an insider ownership of 0.10%.
Before going short Gap, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are negative revenue growth, and the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.