GAP (NYSE:GAP) Price Target Cut to $24.00 by Analysts at Telsey Advisory Group

Key Points

• Telsey Advisory Group has lowered GAP's price target from $26.00 to $24.00, indicating an estimated upside of 8.98% from its previous close.
• Other analysts have also downgraded their ratings, with Barclays cutting its target to $19.00 and UBS lowering its target to $23.00, reflecting a trend of cautious outlooks on the stock.
• GAP recently reported earnings of $0.57 per share for the last quarter, exceeding estimates, but its revenue increased only marginally year-over-year, raising concerns about future growth.

GAP (NYSE:GAP - Get Free Report) had its price objective lowered by equities research analysts at Telsey Advisory Group from $26.00 to $24.00 in a research report issued to clients and investors on Tuesday,Briefing.com Automated Import reports. The firm presently has a "market perform" rating on the stock. Telsey Advisory Group's price target points to a potential upside of 0.91% from the company's current price. Telsey Advisory Group also issued estimates for GAP's Q3 2026 earnings at $0.57 EPS, Q4 2026 earnings at $0.41 EPS, FY2026 earnings at $2.05 EPS, Q1 2027 earnings at $0.53 EPS, Q3 2027 earnings at $0.60 EPS, Q4 2027 earnings at $0.44 EPS and FY2027 earnings at $2.16 EPS.

A number of other analysts have also commented on the stock. Wall Street Zen lowered shares of GAP from a "buy" rating to a "hold" rating in a research report on Sunday, August 3rd. Bank of America boosted their price target on shares of GAP from $21.00 to $23.00 and gave the stock a "neutral" rating in a research report on Friday, August 29th. Zacks Research downgraded shares of GAP from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 27th. Evercore ISI raised their price objective on GAP from $24.00 to $25.00 and gave the company an "outperform" rating in a report on Friday, August 29th. Finally, UBS Group dropped their target price on GAP from $27.00 to $23.00 and set a "neutral" rating on the stock in a report on Friday, August 22nd. Six equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $25.87.

GAP Stock Down 0.6%

GAP stock traded down $0.15 during trading hours on Tuesday, reaching $23.78. 15,511,626 shares of the stock were exchanged, compared to its average volume of 10,327,908. The firm's 50-day moving average is $21.22 and its 200-day moving average is $21.72. GAP has a 12 month low of $16.99 and a 12 month high of $29.29. The company has a market cap of $8.82 billion, a price-to-earnings ratio of 10.16, a PEG ratio of 2.69 and a beta of 2.09. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.68 and a quick ratio of 0.96.

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

Insider Buying and Selling

In other news, Director William Sydney Fisher sold 243,064 shares of GAP stock in a transaction on Thursday, September 4th. The stock was sold at an average price of $23.82, for a total transaction of $5,789,784.48. Following the completion of the sale, the director owned 3,453,453 shares of the company's stock, valued at approximately $82,261,250.46. This trade represents a 6.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 30.56% of the company's stock.

Institutional Investors Weigh In On GAP

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. California State Teachers Retirement System acquired a new stake in shares of GAP in the 4th quarter valued at $4,953,000. GAMMA Investing LLC bought a new stake in shares of GAP during the 1st quarter worth $1,971,000. Rhumbline Advisers acquired a new stake in GAP in the first quarter valued at about $12,210,000. SG Americas Securities LLC bought a new position in GAP in the first quarter valued at about $3,519,000. Finally, Handelsbanken Fonder AB acquired a new position in GAP during the first quarter worth about $1,107,000. 58.81% of the stock is currently owned by institutional investors and hedge funds.

GAP Company Profile

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.