Bank of America Lowers GAP (NYSE:GAP) Price Target to $26.00

Key Points

• Bank of America cut its price target on GAP from $29 to $26 while keeping a neutral rating. The new target still implies about 26% upside from the current share price.
• GAP’s latest quarterly results were mixed: EPS of $0.38 missed estimates by a penny and revenue of $3.50 billion came in slightly below expectations. The company also issued FY 2026 EPS guidance of $2.30 to $2.40.
• Despite analyst support from several firms, the company has faced some caution from investors, including recent insider selling and a reduced full-year revenue outlook tied to softer Old Navy performance and weaker consumer spending.

GAP (NYSE:GAP - Get Free Report) had its price objective cut by equities researchers at Bank of America from $29.00 to $26.00 in a research report issued on Friday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Bank of America's price target suggests a potential upside of 26.12% from the stock's current price.

Several other equities analysts have also recently issued reports on GAP. Telsey Advisory Group boosted their price objective on shares of GAP from $32.00 to $34.00 and gave the company an "outperform" rating in a research note on Monday, March 2nd. Weiss Ratings raised shares of GAP from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, March 25th. Evercore set a $20.00 price objective on shares of GAP and gave the company an "in-line" rating in a research note on Friday. Wells Fargo & Company decreased their price objective on shares of GAP from $30.00 to $26.00 and set an "overweight" rating on the stock in a research report on Friday. Finally, BTIG Research restated a "buy" rating and issued a $28.00 target price on shares of GAP in a report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, GAP has an average rating of "Moderate Buy" and an average price target of $28.79.

GAP Stock Performance

GAP stock traded down $4.39 on Friday, hitting $20.62. The company's stock had a trading volume of 23,519,478 shares, compared to its average volume of 7,935,491. The firm has a 50 day moving average of $24.26 and a two-hundred day moving average of $25.69. GAP has a 1 year low of $18.68 and a 1 year high of $29.36. The stock has a market cap of $7.53 billion, a price-to-earnings ratio of 9.57, a price-to-earnings-growth ratio of 1.39 and a beta of 2.11. The company has a current ratio of 1.75, a quick ratio of 1.08 and a debt-to-equity ratio of 0.39.

GAP (NYSE:GAP - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The company reported $0.38 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.01). GAP had a net margin of 5.31% and a return on equity of 22.98%. The business had revenue of $3.50 billion during the quarter, compared to analysts' expectations of $3.52 billion. During the same quarter last year, the company earned $0.51 EPS. The firm's revenue for the quarter was up 1.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. Equities analysts predict that GAP will post 2.29 EPS for the current fiscal year.

Insider Activity

In other GAP news, insider Amanda J. Thompson sold 25,000 shares of the company's stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $25.14, for a total value of $628,500.00. Following the completion of the transaction, the insider directly owned 86,228 shares of the company's stock, valued at $2,167,771.92. This represents a 22.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, major shareholder John J. Fisher sold 300,000 shares of the company'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 value of $7,620,000.00. Following the completion of the transaction, the insider directly owned 446,781 shares in the company, valued at approximately $11,348,237.40. The trade was a 40.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 923,098 shares of company stock worth $22,648,158. Insiders own 31.00% of the company's stock.

Hedge Funds Weigh In On GAP

Large investors have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio boosted its stake in GAP by 0.6% during the third quarter. Public Employees Retirement System of Ohio now owns 71,867 shares of the company's stock valued at $1,537,000 after buying an additional 447 shares in the last quarter. Cullen Frost Bankers Inc. bought a new position in GAP during the fourth quarter valued at about $26,000. Plato Investment Management Ltd bought a new position in GAP during the fourth quarter valued at about $28,000. V Square Quantitative Management LLC bought a new position in GAP during the fourth quarter valued at about $31,000. Finally, Nisa Investment Advisors LLC boosted its stake in GAP by 3.9% during the fourth quarter. Nisa Investment Advisors LLC now owns 34,766 shares of the company's stock valued at $890,000 after buying an additional 1,301 shares in the last quarter. 58.81% of the stock is currently owned by institutional investors.

More GAP News

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap’s namesake brand remains a bright spot, with management saying it continued to gain market share and deliver strong sales. Gap Inc. Reports First Quarter Fiscal 2026 Results, Raises Full Year Earnings Per Share Outlook
• Positive Sentiment: Several Wall Street firms still have bullish ratings on GAP, including Wells Fargo, Barclays, Goldman Sachs, and BTIG, with price targets well above the current share price. Analyst price target updates
• Neutral Sentiment: Gap reported first-quarter EPS of $0.38 versus $0.39 expected and revenue of $3.50 billion versus $3.52 billion expected, a modest miss that adds to investor caution. Gap earnings report
• Negative Sentiment: Gap lowered its full-year revenue outlook to 1% to 2% growth from 2% to 3%, mainly due to slower-than-expected Old Navy performance and softer discretionary spending. Gap Cuts Full-Year Sales Outlook, Citing Slower Old Navy Growth
• Negative Sentiment: Reuters reported apparel retailers are falling on signs of constrained consumer spending, reinforcing fears that demand remains weak across the sector. Reuters apparel demand report

GAP Company Profile

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.

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