Barclays Cuts GAP (NYSE:GAP) Price Target to $26.00

Key Points

• Barclays cut its price target on GAP from $33 to $26 while keeping an overweight rating, implying about 24.65% upside from the current share price.
• GAP’s latest quarter was mixed: it earned $0.38 per share on $3.50 billion in revenue, both slightly below estimates, though revenue still rose 1.0% year over year.
• Management lowered full-year sales guidance amid weaker performance at Old Navy and a cautious consumer backdrop, even as some analysts maintained buy ratings and pointed to ongoing upside potential.

GAP (NYSE:GAP - Get Free Report) had its price objective cut by stock analysts at Barclays from $33.00 to $26.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Barclays's target price indicates a potential upside of 24.65% from the stock's current price.

GAP has been the topic of several other reports. TD Cowen decreased their price target on shares of GAP from $32.00 to $26.00 and set a "buy" rating for the company in a report on Monday, May 18th. Evercore set a $20.00 target price on shares of GAP and gave the company an "in-line" rating in a research note on Friday. BTIG Research reiterated a "buy" rating and issued a $28.00 price objective on shares of GAP in a report on Friday. The Goldman Sachs Group decreased their target price on GAP from $32.00 to $28.00 and set a "buy" rating for the company in a research report on Friday. Finally, Citigroup raised their price target on GAP from $25.00 to $27.00 and gave the company a "neutral" rating in a research report on Friday, March 6th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, GAP has a consensus rating of "Moderate Buy" and an average target price of $29.14.

GAP Stock Performance

GAP traded down $4.14 during trading on Friday, reaching $20.86. 12,311,128 shares of the company were exchanged, compared to its average volume of 7,770,943. The company has a current ratio of 1.75, a quick ratio of 1.08 and a debt-to-equity ratio of 0.39. The firm has a 50 day moving average of $24.26 and a 200 day moving average of $25.69. The stock has a market cap of $7.62 billion, a P/E ratio of 9.74, a PEG ratio of 1.39 and a beta of 2.11. GAP has a 52 week low of $18.68 and a 52 week high of $29.36.

GAP (NYSE:GAP - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The company reported $0.38 earnings per share for the quarter, missing analysts' consensus estimates of $0.39 by ($0.01). The company had revenue of $3.50 billion during the quarter, compared to analyst estimates of $3.52 billion. GAP had a return on equity of 22.98% and a net margin of 5.31%.The company's revenue was up 1.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.51 earnings per share. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, sell-side analysts forecast that GAP will post 2.29 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Eric Kayen Chan sold 13,377 shares of the company's stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $26.18, for a total transaction of $350,209.86. Following the completion of the transaction, the insider directly owned 21,967 shares of the company's stock, valued at $575,096.06. This represents a 37.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Sarah Gilligan sold 69,912 shares of the stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $25.00, for a total transaction of $1,747,800.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 923,098 shares of company stock worth $22,648,158 over the last quarter. Insiders own 31.00% of the company's stock.

Institutional Investors Weigh In On GAP

Several hedge funds have recently bought and sold shares of the company. Ameriprise Financial Inc. boosted its stake in GAP by 42.7% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company's stock valued at $96,134,000 after purchasing an additional 1,318,322 shares during the period. Miller Howard Investments Inc. NY increased its position in shares of GAP by 112.2% in the first quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company's stock worth $41,237,000 after purchasing an additional 900,855 shares during the period. Jump Financial LLC raised its position in shares of GAP by 2,197.8% in the 3rd quarter. Jump Financial LLC now owns 645,150 shares of the company's stock valued at $13,800,000 after buying an additional 617,073 shares in the last quarter. Bank of New York Mellon Corp raised its position in GAP by 13.0% during the fourth quarter. Bank of New York Mellon Corp now owns 3,195,934 shares of the company's stock valued at $81,816,000 after purchasing an additional 368,191 shares in the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S bought a new stake in shares of GAP during the 4th quarter worth $4,801,000. 58.81% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap reported positive comparable sales for the ninth straight quarter, with net sales up 1% and gross margin of 40.5% topping expectations. The company also raised its full-year EPS outlook, and Goldman Sachs and BTIG both reiterated buy ratings with a $28 price target, suggesting analysts still see upside from current levels. Gap Inc. Reports First Quarter Fiscal 2026 Results, Raises Full Year Earnings Per Share Outlook
• Neutral Sentiment: The company posted adjusted-looking mixed quarter details, with EPS of $0.38 versus $0.39 expected and revenue of $3.50 billion versus $3.52 billion expected, indicating the results were close to forecasts but not strong enough to offset concerns about guidance. Gap Quarterly Earnings Report
• Negative Sentiment: Management lowered full-year sales guidance, citing weaker-than-expected performance at Old Navy and a cautious consumer backdrop. Reuters also noted apparel stocks fell on signs that discretionary spending remains constrained, which is weighing on sentiment around GAP. Reuters: Gap, American Eagle fall as weak apparel demand signals constrained consumer spending

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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