Remember those old TV commercials – fall into the Gap ! Well it appears one Gap insider is going the other way. This insider wants out.
Fast Money trader and CNBC contributor Patty Edwards of Trutina Financial has spotted some curious insider selling at the trendy clothing company.
She's done some digging and her research shows company co-founder Doris Fisher has sold 5 chunks of stock this month, totaling $147 million dollars worth of equity.
Take a look:
Doris Fisher Sales This Month
| Date | Value | |
| Sold | 12/16/10 | $17.5M |
| Sold | 12/14/10 | $26.1M |
| Sold | 12/10/10 | $42.9M |
| Sold | 12/8/10 | $34.0M |
| Sold | 12/6/10 | $26.7M |
| Total Sold In Dec. $147.2M |
Source: InsiderScore.com
What should you make of it?
Patty Edwards speculates that these developments could be a stealth sign that Gap may be putting itself up for sale.
”If you look at Gap on a P/E basis it’s cheap,” she says “but no one has been willing to think of it as a takeout because of the family’s stake. (Despite the company's publicly traded status, the Fisher family remains deeply involved in Gap's business and collectively owns a significant quantity of the company's stock.)
"But the sale could signal Gap opening the door to becoming some kind of takeout candidate," she says.
Now, Edwards concedes that this is strictly speculation and she could be absolutely wrong. Fisher simply be rearranging her portfolio for end of year tax reasons.
Nonetheless Edwards calls the stock sale “an awfully loud bang in the room.”
