Breaking away from a prolonged 52 weeks low, Gap is ready for a comeback for the stock as shares of the company surged over 20% earlier this month after it announced the split of its Old Navy business from the rest of the company brands.
Last Wednesday the company saw its average daily call volume increase two-fold despite the company announcing the closure of its 100 Arden Pl. store, after being operational for nearly 27 years. Traders also highlighted that there was ample optimism surrounding the company after it recently announced its restructuring plan and expects GAP’s shares to reach $28.27 by June expiration, resulting into the purchase of 6,000 June 27- calls for $1.27 per options contract.
However, Gap’s overall performance for the full year has been unremarkable as shares of Gap are up just over 1% this year in contrast to the broader retailer group’s gains of 10%.
Interestingly at its current price point, the company’s market capitalization stood at $10.13 billion with 387.86 million shares outstanding. And on the last trading day of the month GAP’s daily trade volume clocked 5,274,498 shares which when compared with its usual volume of about 5.79 million shares per day of trading, fell marginally short.