The Gap, Inc. (NYSE:GAP) Given Consensus Rating of “Moderate Buy” by Analysts

The Gap, Inc. (NYSE:GAP) has been assigned an average recommendation of “Moderate Buy” from the eighteen analysts that are currently covering the stock, Marketbeat Ratings reports. Six analysts have rated the stock with a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $28.7143.

Several brokerages have issued reports on GAP. Wells Fargo & Company decreased their target price on shares of GAP from $30.00 to $26.00 and set an “overweight” rating for the company in a report on Friday. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $27.00 target price (down from $35.00) on shares of GAP in a report on Friday. Evercore set a $20.00 target price on shares of GAP and gave the stock an “in-line” rating in a report on Friday. The Goldman Sachs Group decreased their target price on shares of GAP from $32.00 to $28.00 and set a “buy” rating for the company in a report on Friday. Finally, Citigroup lifted their target price on shares of GAP from $25.00 to $27.00 and gave the stock a “neutral” rating in a report on Friday, March 6th.

Insider Transactions at GAP

In other news, major shareholder John J. Fisher sold 300,000 shares of the business’s stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $25.40, for a total transaction of $7,620,000.00. Following the completion of the transaction, the insider directly owned 446,781 shares of the company’s stock, valued at $11,348,237.40. The trade was a 40.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Julie Gruber sold 5,302 shares of the business’s stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $27.00, for a total transaction of $143,154.00. Following the transaction, the insider directly owned 58,414 shares of the company’s stock, valued at $1,577,178. The trade was a 8.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 923,098 shares of company stock valued at $22,648,158. Company insiders own 31.00% of the company’s stock.

Institutional Trading of GAP

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. LSV Asset Management increased its holdings in GAP by 3.6% during the fourth quarter. LSV Asset Management now owns 3,462,702 shares of the company’s stock valued at $88,645,000 after buying an additional 121,001 shares during the last quarter. Quantbot Technologies LP purchased a new stake in GAP during the third quarter valued at approximately $1,845,000. Quent Capital LLC increased its holdings in GAP by 1,900.2% during the fourth quarter. Quent Capital LLC now owns 21,202 shares of the company’s stock valued at $543,000 after buying an additional 20,142 shares during the last quarter. Miller Howard Investments Inc. NY purchased a new stake in GAP during the fourth quarter valued at approximately $20,561,000. Finally, Neo Ivy Capital Management purchased a new stake in GAP during the third quarter valued at approximately $3,555,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

GAP Trading Down 15.4%

Shares of NYSE GAP opened at $21.14 on Tuesday. GAP has a 1 year low of $18.68 and a 1 year high of $29.36. The stock has a market cap of $7.72 billion, a P/E ratio of 8.32, a price-to-earnings-growth ratio of 1.23 and a beta of 2.11. The firm has a 50-day moving average of $24.20 and a 200 day moving average of $25.66. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.75 and a quick ratio of 1.08.

GAP (NYSE:GAP) last issued its quarterly earnings results on Thursday, May 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). GAP had a net margin of 6.25% and a return on equity of 21.17%. The business had revenue of $3.50 billion for the quarter, compared to analysts’ expectations of $3.52 billion. During the same period last year, the business earned $0.51 earnings per share. The company’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. As a group, sell-side analysts expect that GAP will post 2.33 EPS for the current fiscal year.

GAP Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Shareholders of record on Wednesday, July 8th will be issued a $0.175 dividend. The ex-dividend date of this dividend is Wednesday, July 8th. This represents a $0.70 annualized dividend and a yield of 3.3%. GAP’s payout ratio is 27.56%.

Key Stories Impacting GAP

Here are the key news stories impacting GAP this week:

• Negative Sentiment: The Gap reported Q1 EPS of $0.38, missing estimates, and revenue of $3.50 billion, also slightly below expectations. The market is reacting to the earnings miss and lower revenue trend. Article Title
• Negative Sentiment: Management lowered fiscal 2026 revenue guidance to 1% to 2% growth from 2% to 3%, citing slower Old Navy growth and weaker-than-expected spring/summer demand. Article Title
• Negative Sentiment: Several headlines highlighted that shares fell sharply after the company’s cautious Q2 outlook and sales guidance reset, with analysts and media focusing on the weak consumer backdrop and pressure on nonessential spending. Article Title
• Neutral Sentiment: Gap still posted 2% comparable sales growth for a ninth straight quarter, and the flagship Gap brand remained relatively strong, which partially offsets the weaker outlook. Article Title
• Neutral Sentiment: Analysts broadly kept positive or neutral ratings but lowered price targets, signaling that Wall Street sees upside from current levels, while acknowledging slower near-term growth. Article Title
• Negative Sentiment: A shareholder investigation notice added another overhang, reflecting investor concern that the quarter’s results may have involved disclosure or securities-law issues. Article Title

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.