The Gap, Inc. (NYSE:GAP) Stock Has Average Target Price of $27.07

Shares of The Gap, Inc. (NYSE:GAP) have earned an average recommendation of “Hold” from the nineteen ratings firms that are currently covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, eleven have given a hold recommendation, five have given a buy recommendation and two have issued a strong buy recommendation on the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $27.07.

Several equities analysts have weighed in on the company. UBS Group raised their target price on GAP from $40.00 to $42.00 and gave the company a “buy” rating in a report on Friday, August 28th. Weiss Ratings downgraded GAP from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, July 28th. TD Cowen increased their price objective on GAP from $23.00 to $27.00 and gave the company a “buy” rating in a report on Friday, August 28th. BMO Capital Markets initiated coverage on GAP in a research note on Tuesday, September 8th. They issued a “market perform” rating and a $23.00 price objective on the stock. Finally, The Goldman Sachs Group boosted their target price on GAP from $25.00 to $27.00 and gave the stock a “buy” rating in a report on Monday, August 31st.

GAP Stock Down 2.8%

GAP stock opened at $22.88 on Monday. The company has a market capitalization of $8.04 billion, a P/E ratio of 6.83, a P/E/G ratio of 0.98 and a beta of 2.08. The firm’s fifty day simple moving average is $21.00 and its 200-day simple moving average is $22.03. The company has a current ratio of 1.82, a quick ratio of 1.11 and a debt-to-equity ratio of 0.38. GAP has a 1-year low of $18.11 and a 1-year high of $29.36.

GAP (NYSE:GAP) last released its quarterly earnings data on Thursday, August 27th. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.04. The business had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.69 billion. GAP had a net margin of 8.14% and a return on equity of 19.72%. GAP’s quarterly revenue was down 2.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.57 EPS. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. Sell-side analysts forecast that GAP will post 2.41 earnings per share for the current fiscal year.

GAP Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be given a $0.1750 dividend. The ex-dividend date of this dividend is Wednesday, October 7th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.1%. GAP’s dividend payout ratio (DPR) is currently 20.90%.

Institutional Trading of GAP

Institutional investors and hedge funds have recently modified their holdings of the company. Jupiter Topco LLC acquired a new position in GAP in the 2nd quarter valued at $2,017,000. BlackRock Inc. bought a new position in GAP in the 2nd quarter worth $428,824,000. Robinhood Asset Management LLC acquired a new position in GAP during the 2nd quarter worth $6,312,000. Miller Howard Investments Inc. NY lifted its position in GAP by 112.2% during the 1st quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company’s stock worth $41,237,000 after acquiring an additional 900,855 shares during the last quarter. Finally, Engineers Gate Manager LP bought a new stake in GAP during the second quarter valued at about $4,216,000. 58.81% of the stock is currently owned by institutional investors and hedge funds.

GAP Company Profile

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections. The Old Navy Global segment offers clothing and accessories for adults and children.