GAP (NYSE:GAP) Upgraded to "Hold" at BMO Capital Markets

Key Points

• BMO Capital Markets upgraded GAP to “Hold,” while the broader analyst consensus remains “Hold” with an average price target of $27.07.
• GAP exceeded quarterly EPS expectations, reporting $0.52 versus the $0.48 consensus, but revenue declined 2% year over year to $3.65 billion, below estimates.
• The stock opened at $20.93 and was down 2%; institutional investors own approximately 58.81% of GAP’s outstanding shares.

GAP (NYSE:GAP - Get Free Report) was upgraded by BMO Capital Markets to a "hold" rating in a report released on Tuesday, Zacks reports.

Several other analysts have also commented on the stock. Jefferies Financial Group lowered shares of GAP from a "buy" rating to a "hold" rating and dropped their price target for the company from $29.00 to $23.00 in a research report on Wednesday, August 12th. Weiss Ratings lowered shares of GAP from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, July 28th. TD Cowen lifted their price target on GAP from $23.00 to $27.00 and gave the company a "buy" rating in a research note on Friday, August 28th. Morgan Stanley upped their price target on GAP from $21.00 to $23.00 and gave the stock an "equal weight" rating in a report on Friday, August 28th. Finally, UBS Group increased their price target on GAP from $40.00 to $42.00 and gave the stock a "buy" rating in a research report on Friday, August 28th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, GAP presently has a consensus rating of "Hold" and an average target price of $27.07.

GAP Trading Down 2.0%

Shares of NYSE:GAP opened at $20.93 on Tuesday. 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 12-month low of $18.11 and a 12-month high of $29.36. The business has a 50 day moving average of $20.47 and a two-hundred day moving average of $22.47. The company has a market capitalization of $7.35 billion, a PE ratio of 6.25, a PEG ratio of 0.91 and a beta of 2.08.

GAP (NYSE:GAP - Get Free Report) last issued its quarterly earnings data on Thursday, August 27th. The company reported $0.52 EPS for the quarter, topping analysts' consensus estimates of $0.48 by $0.04. The business had revenue of $3.65 billion for the quarter, compared to analysts' expectations of $3.69 billion. GAP had a net margin of 8.14% and a return on equity of 19.72%. The business's revenue was down 2.0% on a year-over-year basis. During the same quarter last year, the company earned $0.57 EPS. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. As a group, analysts forecast that GAP will post 2.41 EPS for the current year.

Institutional Trading of GAP

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Amundi purchased a new position in GAP in the 1st quarter valued at about $259,000. EverSource Wealth Advisors LLC increased its stake in GAP by 177.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company's stock worth $153,000 after buying an additional 4,483 shares in the last quarter. Jump Financial LLC acquired a new position in shares of GAP during the second quarter valued at approximately $612,000. California State Teachers Retirement System raised its holdings in shares of GAP by 0.8% during the second quarter. California State Teachers Retirement System now owns 226,506 shares of the company's stock valued at $4,940,000 after acquiring an additional 1,703 shares during the last quarter. Finally, Ameriprise Financial Inc. lifted its position in shares of GAP by 42.7% in the second quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company's stock valued at $96,134,000 after acquiring an additional 1,318,322 shares in the last quarter. Hedge funds and other institutional investors own 58.81% of the company's stock.

GAP Company Profile

Gap Inc is an American specialty apparel retailer founded in 1969 by Donald and Doris Fisher in San Francisco, California. The company operates a portfolio of consumer brands focused on clothing, accessories and personal-care products for women, men and children.

Its principal brands include Old Navy, Gap, Banana Republic and Athleta. Products are sold through company-operated stores, franchise locations and digital channels, with offerings spanning casual apparel, denim, activewear, accessories and lifestyle products.

Gap Inc serves customers in North America and selected international markets through its retail and e-commerce operations.

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