GAP (NYSE:GAP) Hits New 12-Month Low - What's Next?

Key Points

• GAP shares fell to a new 52-week low, trading as low as $18.60 and closing down 7.3% on heavy volume. The stock is now well below its 50-day and 200-day moving averages.
• Recent earnings were slightly weaker than expected, with Q1 EPS of $0.38 versus estimates of $0.39 and revenue of $3.50 billion versus $3.52 billion expected. GAP also lowered its FY 2026 EPS guidance to $2.30-$2.40.
• Analysts remain cautiously positive despite the decline, with a consensus rating of “Moderate Buy” and an average price target of $28.71. The company also announced a quarterly dividend of $0.175 per share, implying a 3.7% yield.

The Gap, Inc. (NYSE:GAP - Get Free Report) hit a new 52-week low on Tuesday . The company traded as low as $18.60 and last traded at $18.7340, with a volume of 17141862 shares. The stock had previously closed at $20.21.

Analysts Set New Price Targets

A number of analysts recently commented on GAP shares. Citigroup increased 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. Telsey Advisory Group boosted their price objective on GAP from $32.00 to $34.00 and gave the stock an "outperform" rating in a research report on Monday, March 2nd. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of GAP in a research report on Thursday, June 18th. BTIG Research restated a "buy" rating and set a $28.00 price target on shares of GAP in a research report on Friday, May 29th. Finally, The Goldman Sachs Group decreased their price objective on shares of GAP from $32.00 to $28.00 and set a "buy" rating for the company in a report on Friday, May 29th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, GAP presently has an average rating of "Moderate Buy" and a consensus price target of $28.71.

GAP Trading Down 7.3%

The firm has a fifty day moving average of $22.55 and a two-hundred day moving average of $25.01. The company has a market cap of $6.74 billion, a PE ratio of 7.38, a price-to-earnings-growth ratio of 1.19 and a beta of 2.03. The company has a current ratio of 1.81, a quick ratio of 1.08 and a debt-to-equity ratio of 0.41.

GAP (NYSE:GAP - Get Free Report) last issued its 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). GAP had a return on equity of 21.13% and a net margin of 6.25%.The business had revenue of $3.50 billion for the quarter, compared to the consensus estimate of $3.52 billion. During the same quarter in the prior year, the business earned $0.51 EPS. GAP'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. As a group, sell-side analysts predict that The Gap, Inc. will post 2.34 EPS for the current year.

GAP Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 29th. Stockholders of record on Wednesday, July 8th will be issued a $0.175 dividend. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend is Wednesday, July 8th. GAP's dividend payout ratio is presently 27.56%.

Insider Activity

In other GAP news, insider Amanda J. Thompson sold 25,000 shares of the firm's stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $25.14, for a total value of $628,500.00. Following the sale, the insider owned 86,228 shares of the company's stock, valued at $2,167,771.92. This trade represents a 22.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Julie Gruber sold 5,302 shares of the firm's stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $27.00, for a total transaction of $143,154.00. Following the completion of the sale, the insider directly owned 58,414 shares in the company, valued at $1,577,178. This represents a 8.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 343,679 shares of company stock valued at $8,741,864. 31.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On GAP

A number of institutional investors have recently made changes to their positions in GAP. Glenmede Trust Co. NA grew its position in GAP by 146.5% in the first quarter. Glenmede Trust Co. NA now owns 77,435 shares of the company's stock worth $1,874,000 after acquiring an additional 46,017 shares in the last quarter. Kentucky Retirement Systems purchased a new stake in GAP during the first quarter valued at about $529,000. California State Teachers Retirement System lifted its stake in GAP by 23.5% during the first quarter. California State Teachers Retirement System now owns 279,201 shares of the company's stock worth $6,757,000 after purchasing an additional 53,098 shares during the last quarter. Miller Howard Investments Inc. NY lifted its stake in GAP by 112.2% during 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 last quarter. Finally, Public Employees Retirement System of Ohio boosted its holdings in shares of GAP by 2.7% in the 4th quarter. Public Employees Retirement System of Ohio now owns 73,812 shares of the company's stock worth $1,890,000 after purchasing an additional 1,945 shares in the last quarter. Institutional investors own 58.81% of the company's stock.

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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