The Gap, Inc. (NYSE:GPS) operates as an apparel retail company worldwide.
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||June 23||12,369||Yes||0 shares + 22,500 options||35.5%|
|Robert Fisher||Director||June 10-18||500,000||No||107,626,097
shares + 21,048 options
|Sonia Syngal||EVP||June 10||8,416||No||0 shares + 32,500 options||20.6%|
|John Fisher||10% Owner||May 30||152,379||No||117,752,543
There have been 673,164 shares sold by insiders during the last 30 days. Sabrina Simmons sold her 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 5,650,768 shares sold and there have been zero shares purchased by insiders since January 2013. The month of June has seen the most insider selling this year.
Gap reported the fiscal 2014 first-quarter, which ended May 3, financial results on May 22 with the following highlights:
|Net income||$260 million|
The four insiders sold their shares after these results.
(Source: Earnings presentation)
Gap had negative earnings growth in the first quarter.
Gap reported on June 5 that May net sales increased 4% compared with last year.
(Source: Investor presentation)
|Qtrly Rev Growth (yoy):||0.01||-0.05||-0.02||0.14|
|PEG (5 yr expected):||1.09||5.29||1.01||1.83|
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 four different insiders selling Gap and there have not been any insiders buying Gap during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Gap has an insider ownership of 38.26%.
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 earnings growth, and the intensive insider-selling activity.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.