GAP (NYSE:GAP) Shares Up 5% – Here’s Why

The Gap, Inc. (NYSE:GAP)’s share price traded up 5% during trading on Wednesday . The stock traded as high as $21.12 and last traded at $21.1650. Approximately 1,288,522 shares were traded during mid-day trading, a decline of 83% from the average session volume of 7,604,655 shares. The stock had previously closed at $20.15.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. The Goldman Sachs Group dropped their price target on GAP from $28.00 to $25.00 and set a “buy” rating for the company in a report on Thursday, August 20th. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $27.00 price objective (down from $35.00) on shares of GAP in a report on Friday, May 29th. BTIG Research set a $26.00 price objective on GAP in a research report on Thursday, July 30th. Weiss Ratings downgraded GAP from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, July 28th. Finally, Evercore set a $20.00 target price on shares of GAP and gave the company an “in-line” rating in a research report on Friday, May 29th. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, GAP has a consensus rating of “Moderate Buy” and an average price target of $26.29.

GAP Trading Up 5.7%

The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41. The firm has a market capitalization of $7.67 billion, a P/E ratio of 8.38, a PEG ratio of 1.21 and a beta of 2.05. The firm has a 50 day moving average of $20.01 and a 200-day moving average of $22.98.

GAP (NYSE:GAP) last posted its quarterly earnings data on Thursday, May 28th. The company reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). GAP had a return on equity of 21.13% and a net margin of 6.25%.The company had revenue of $3.50 billion for the quarter, compared to the consensus estimate of $3.52 billion. During the same quarter last year, the business earned $0.51 EPS. GAP’s revenue was up 1.0% on a year-over-year basis. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, equities research analysts predict that The Gap, Inc. will post 2.33 earnings per share for the current fiscal year.

GAP Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be issued a dividend of $0.175 per share. This represents a $0.70 annualized dividend and a dividend yield of 3.3%. The ex-dividend date of this dividend is Wednesday, October 7th. GAP’s dividend payout ratio is 27.56%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of GAP. Public Employees Retirement System of Ohio raised its holdings in shares of GAP by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 71,867 shares of the company’s stock worth $1,537,000 after buying an additional 447 shares in the last quarter. Cullen Frost Bankers Inc. bought a new position in GAP in the fourth quarter valued at about $26,000. Plato Investment Management Ltd bought a new position in shares of GAP in the fourth quarter worth about $28,000. Global Retirement Partners LLC bought a new position in shares of GAP in the second quarter worth about $29,000. Finally, California State Teachers Retirement System boosted its stake in shares of GAP by 0.8% in the 2nd quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock valued at $4,940,000 after purchasing an additional 1,703 shares in the last quarter. Institutional investors and hedge funds own 58.81% of the company’s stock.

About GAP

Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand’s distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world’s largest apparel companies.