GAP (NYSE:GAP) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks Research has downgraded GAP from a "hold" rating to a "strong sell" rating, signaling potential concerns about the company's financial health.
• Several other analysts have lowered their ratings and target prices for GAP, with Barclays projecting a new target price of $19.00, reducing it from $24.00.
• The company reported a moderate increase in revenue and earnings, with a $0.57 EPS for the last quarter, slightly above analysts' expectations.

GAP (NYSE:GAP - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Wednesday,Zacks.com reports.

Other research analysts have also recently issued reports about the stock. Wells Fargo & Company cut shares of GAP from an "overweight" rating to an "equal weight" rating and lowered their target price for the stock from $30.00 to $24.00 in a report on Wednesday, April 30th. Evercore ISI lowered their price objective on shares of GAP from $27.00 to $24.00 and set an "outperform" rating for the company in a research report on Wednesday, July 30th. UBS Group reduced their price objective on GAP from $27.00 to $23.00 and set a "neutral" rating on the stock in a research report on Friday, August 22nd. Wall Street Zen downgraded shares of GAP from a "buy" rating to a "hold" rating in a research note on Sunday, August 3rd. Finally, Telsey Advisory Group cut their price objective on GAP from $26.00 to $24.00 and set a "market perform" rating on the stock in a research note on Monday, August 25th. Six analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $25.87.

GAP Stock Performance

Shares of GAP stock traded up $0.37 on Wednesday, reaching $22.38. The stock had a trading volume of 10,608,897 shares, compared to its average volume of 9,119,849. The company has a quick ratio of 0.96, a current ratio of 1.68 and a debt-to-equity ratio of 0.43. The firm's 50-day moving average is $21.10 and its two-hundred day moving average is $21.70. The firm has a market capitalization of $8.43 billion, a price-to-earnings ratio of 9.56, a P/E/G ratio of 2.46 and a beta of 2.09. GAP has a 12 month low of $16.99 and a 12 month high of $29.29.

GAP (NYSE:GAP - Get Free Report) last released its quarterly earnings data on Thursday, August 28th. The company reported $0.57 EPS for the quarter, topping analysts' consensus estimates of $0.55 by $0.02. The firm had revenue of $3.73 billion during the quarter, compared to analysts' expectations of $3.73 billion. GAP had a net margin of 5.86% and a return on equity of 27.04%. The company's revenue for the quarter was up .1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.54 earnings per share. GAP has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, research analysts expect that GAP will post 2.02 EPS for the current fiscal year.

Institutional Trading of GAP

Large investors have recently bought and sold shares of the company. Caisse DE Depot ET Placement DU Quebec bought a new stake in shares of GAP in the first quarter valued at approximately $7,207,000. Ameriprise Financial Inc. bought a new position in GAP in the 1st quarter worth about $63,674,000. Bank of New York Mellon Corp bought a new position in shares of GAP in the first quarter worth approximately $56,763,000. Nisa Investment Advisors LLC purchased a new stake in shares of GAP during the 1st quarter valued at $832,000. Finally, Atlas Capital Advisors Inc. bought a new stake in GAP during the first quarter worth about $264,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

About GAP

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.