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Gap CFO Katrina O'Connell sells over $1m in company stock

Published 2024-03-15, 06:30 p/m
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GPS
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In a recent move, Katrina O'Connell, the Chief Financial Officer of Gap Inc. (NYSE:GPS), has sold a significant amount of company stock, totaling over $1 million. The transaction was carried out on March 14, 2024, and was reported in a filing with the Securities and Exchange Commission.

O'Connell sold a total of 45,266 shares of Gap's common stock at weighted average prices ranging between $22.28 and $22.92, with the total proceeds amounting to approximately $1,022,305. The average price for the shares sold was reported as $22.5844. Following this transaction, O'Connell no longer holds any shares of Gap Inc. common stock directly.

In addition to the sale, the filing revealed that O'Connell exercised options to acquire 12,036 shares of common stock at no cost. This transaction did not affect the total proceeds from the sale but increased her ownership in the company, which she subsequently disposed of in part to cover tax obligations. Specifically, 6,099 shares were sold at a price of $23.00 per share, generating a total of $140,277.

The filing also included information about derivative securities, specifically restricted stock units (RSUs). O'Connell was granted 48,143 RSUs on March 14, 2022, which vest in four equal annual installments starting from the first anniversary of the grant date. Each RSU represents a contingent right to receive one share of Gap Inc. common stock. On the same day as the reported sale, 12,036 RSUs were converted into common stock at no cost, leaving O'Connell with a balance of 182,873 RSUs.

The transactions were made pursuant to a Rule 10b5-1 trading plan, which O'Connell adopted on August 28, 2023. This plan allows corporate insiders to set up a predetermined schedule to buy or sell company stock to avoid accusations of insider trading.

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Investors and market watchers often pay close attention to the buying and selling activities of corporate insiders like CFOs, as these actions can provide insights into the executives' perspectives on the company's future performance.

InvestingPro Insights

Gap Inc. (NYSE:GPS) has been in the spotlight following the CFO's recent stock sale, and investors are keen to understand the financial health and future prospects of the company. According to InvestingPro data, Gap has a market capitalization of $8.71 billion and a price-to-earnings (P/E) ratio of 17.3, which adjusts to 15.9 when considering the last twelve months as of Q4 2024. This valuation could suggest that the stock is trading at a reasonable price relative to its earnings.

One of the key InvestingPro Tips that stands out for Gap is the company's dividend history. Gap has raised its dividend for 3 consecutive years, demonstrating a commitment to returning value to shareholders. In addition, 7 analysts have revised their earnings estimates upwards for the upcoming period, which may indicate a positive outlook on the company's financial performance.

InvestingPro data also reveals a robust dividend yield of 2.54% as of the last dividend's ex-date on January 2, 2024. This yield, coupled with a significant one-year price total return of 155.1%, underscores the stock's attractiveness to both income and growth-focused investors. The stock is also trading near its 52-week high, at 98.71% of the peak price, reflecting strong market sentiment.

For those interested in further insights, InvestingPro offers additional tips on Gap Inc., which can be accessed by visiting https://www.investing.com/pro/GPS. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 12 more InvestingPro Tips available that could provide valuable guidance for your investment decisions in Gap Inc.

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