The Gap, Inc. (NYSE:GAP) Given Consensus Rating of "Hold" by Analysts

Key Points

• Analysts maintain a “Hold” consensus on Gap, with 10 hold, five buy, two strong-buy and one sell rating among 18 firms. The average 12-month price target is $27.36.
• Gap exceeded quarterly earnings expectations, reporting $0.52 in EPS versus $0.48 expected, although revenue of $3.65 billion fell short of estimates and declined 2% year over year.
• The company declared a quarterly dividend of $0.175, equivalent to $0.70 annually and a 3.2% yield; institutional investors own 58.81% of outstanding shares.

Shares of The Gap, Inc. (NYSE:GAP - Get Free Report) have earned a consensus recommendation of "Hold" from the eighteen research firms that are covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating, five have issued a buy rating and two have given a strong buy rating to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $27.3571.

Several analysts have recently commented on the stock. TD Cowen raised their price objective on shares of GAP from $23.00 to $27.00 and gave the company a "buy" rating in a research report on Friday, August 28th. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $27.00 price target (down from $35.00) on shares of GAP in a research note on Friday, May 29th. Evercore set a $20.00 price target on GAP and gave the company an "in-line" rating in a report on Friday, May 29th. Bank of America boosted their price objective on GAP from $26.00 to $27.00 and gave the company a "neutral" rating in a research report on Friday, August 28th. Finally, Morgan Stanley upped their price objective on GAP from $21.00 to $23.00 and gave the stock an "equal weight" rating in a research note on Friday, August 28th.

GAP Trading Up 0.3%

GAP stock opened at $22.07 on Thursday. The firm has a 50 day moving average of $20.15 and a 200 day moving average of $22.73. The firm has a market capitalization of $7.75 billion, a price-to-earnings ratio of 6.59, a P/E/G ratio of 0.93 and a beta of 2.08. GAP has a 12-month low of $18.11 and a 12-month high of $29.36. 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 (NYSE:GAP - Get Free Report) last issued its quarterly earnings results on Thursday, August 27th. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.04. The business had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.69 billion. GAP had a net margin of 8.14% and a return on equity of 19.72%. The company's revenue for the quarter was down 2.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.57 earnings per share. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. As a group, research analysts predict that GAP will post 2.41 earnings per share for the current year.

GAP Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Wednesday, October 7th will be paid a $0.175 dividend. This represents a $0.70 annualized dividend and a yield of 3.2%. The ex-dividend date is Wednesday, October 7th. GAP's dividend payout ratio is presently 20.90%.

Institutional Investors Weigh In On GAP

A number of institutional investors have recently added to or reduced their stakes in GAP. BlackRock Inc. purchased a new position in shares of GAP in the 2nd quarter worth $428,824,000. Miller Howard Investments Inc. NY increased its holdings in shares of GAP by 112.2% in the 1st quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company's stock worth $41,237,000 after buying an additional 900,855 shares during the last quarter. LSV Asset Management raised its position in shares of GAP by 3.6% during the 4th 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 in the last quarter. Robinhood Asset Management LLC purchased a new stake in shares of GAP during the 2nd quarter valued at about $6,312,000. Finally, Redwood Investment Management LLC bought a new position in shares of GAP in the 2nd quarter valued at about $1,185,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

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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