GAP (NYSE:GAP) Lowered to Hold Rating by Barclays

Key Points

• Barclays downgraded GAP from “strong buy” to “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $27.14.
• GAP shares opened at $21.03 and were down 2.3%, trading below their 200-day moving average; the stock has ranged from $18.11 to $29.36 over the past year.
• The company slightly missed quarterly expectations, reporting $0.38 in EPS versus $0.39 expected and $3.50 billion in revenue versus $3.52 billion forecast, though revenue increased 1% year over year.

GAP (NYSE:GAP - Get Free Report) was downgraded by analysts at Barclays from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

A number of other analysts have also recently issued reports on GAP. Bank of America reduced their price objective on GAP from $29.00 to $26.00 and set a "neutral" rating for the company in a research report on Friday, May 29th. TD Cowen dropped their target price on GAP from $32.00 to $26.00 and set a "buy" rating on the stock in a research report on Monday, May 18th. Jefferies Financial Group cut their price target on GAP from $32.00 to $29.00 and set a "buy" rating for the company in a research note on Friday, May 29th. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $27.00 price target (down from $35.00) on shares of GAP in a report on Friday, May 29th. Finally, BTIG Research set a $26.00 price target on GAP in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat.com, GAP has a consensus rating of "Moderate Buy" and a consensus price target of $27.14.

GAP Stock Down 2.3%

GAP stock opened at $21.03 on Tuesday. The company has a 50 day moving average of $20.30 and a two-hundred day moving average of $23.51. The company has a market cap of $7.57 billion, a price-to-earnings ratio of 8.28, a PEG ratio of 1.27 and a beta of 2.05. GAP has a 12-month low of $18.11 and a 12-month high of $29.36. The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41.

GAP (NYSE:GAP - Get Free Report) last posted 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 6.25% and a return on equity of 21.13%. The company had revenue of $3.50 billion for the quarter, compared to analysts' expectations of $3.52 billion. During the same quarter in the prior year, the firm earned $0.51 earnings per share. The company's revenue was up 1.0% on a year-over-year basis. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, equities analysts anticipate that GAP will post 2.34 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Public Employees Retirement System of Ohio grew its position in shares of GAP by 0.6% in 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 purchasing an additional 447 shares during the last quarter. Cullen Frost Bankers Inc. bought a new stake in GAP during the 4th quarter valued at approximately $26,000. Plato Investment Management Ltd acquired a new stake in GAP in the 4th quarter valued at approximately $28,000. Global Retirement Partners LLC acquired a new stake in GAP in the 2nd quarter valued at approximately $29,000. Finally, California State Teachers Retirement System increased its position in GAP by 0.8% in the 2nd quarter. California State Teachers Retirement System now owns 226,506 shares of the company's stock worth $4,940,000 after buying an additional 1,703 shares during the period. Institutional investors and hedge funds 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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