GAP (NYSE:GAP) Price Target Lowered to $29.00 at Jefferies Financial Group

Key Points

• Jefferies cut its price target on GAP to $29 from $32, though it kept a buy rating. The new target still implies roughly 37% upside from the current share price.
• GAP shares fell sharply, trading down 15.6% to $21.10 after the company’s latest earnings update. The company reported EPS of $0.38 on revenue of $3.50 billion, both slightly below expectations.
• Despite the selloff, GAP said comparable sales rose 2% year over year and raised its full-year EPS outlook. However, it also lowered its revenue growth forecast, citing softer demand and slower growth at Old Navy.

GAP (NYSE:GAP - Get Free Report) had its price target dropped by equities researchers at Jefferies Financial Group from $32.00 to $29.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Jefferies Financial Group's price target suggests a potential upside of 37.47% from the company's current price.

A number of other research firms also recently issued reports on GAP. JPMorgan Chase & Co. reissued a "neutral" rating and set a $27.00 price target (down from $35.00) on shares of GAP in a research report on Friday. The Goldman Sachs Group lowered their price target on GAP from $32.00 to $28.00 and set a "buy" rating on the stock in a research report on Friday. Telsey Advisory Group boosted their price target 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 upgraded GAP from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, March 25th. Finally, Wells Fargo & Company reduced their price objective on GAP from $30.00 to $26.00 and set an "overweight" rating for the company in a report on Friday. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $28.71.

GAP Stock Down 15.6%

Shares of GAP traded down $3.91 during midday trading on Friday, hitting $21.10. The stock had a trading volume of 27,886,927 shares, compared to its average volume of 7,968,639. The company has a 50 day simple moving average of $24.26 and a two-hundred day simple moving average of $25.69. GAP has a twelve month low of $18.68 and a twelve month high of $29.36. The firm has a market cap of $7.71 billion, a price-to-earnings ratio of 9.81, a price-to-earnings-growth ratio of 1.39 and a beta of 2.11. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.75 and a quick ratio of 1.08.

GAP (NYSE:GAP - Get Free Report) last released its earnings results on Thursday, May 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.39 by ($0.01). The company had revenue of $3.50 billion during the quarter, compared to analyst estimates of $3.52 billion. GAP had a net margin of 5.31% and a return on equity of 22.98%. GAP's revenue was up 1.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.51 EPS. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, analysts anticipate that GAP will post 2.29 EPS for the current year.

Insider Activity at GAP

In related news, insider Sarah Gilligan sold 69,912 shares of the firm's stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $25.00, for a total value of $1,747,800.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder John J. Fisher sold 300,000 shares of the firm's stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $25.40, for a total value of $7,620,000.00. Following the completion of the transaction, the insider directly owned 446,781 shares of the company's stock, valued at $11,348,237.40. The trade was a 40.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 923,098 shares of company stock worth $22,648,158 over the last 90 days. Corporate insiders own 31.00% of the company's stock.

Institutional Trading of GAP

A number of hedge funds have recently made changes to their positions in GAP. Cullen Frost Bankers Inc. purchased a new position in GAP in the 4th quarter worth $26,000. Plato Investment Management Ltd purchased a new position in shares of GAP in the fourth quarter valued at about $28,000. V Square Quantitative Management LLC purchased a new position in shares of GAP in the fourth quarter valued at about $31,000. Cornerstone Planning Group LLC purchased a new position in shares of GAP in the third quarter valued at about $35,000. Finally, EverSource Wealth Advisors LLC increased its position in shares of GAP by 177.0% in the second quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company's stock valued at $153,000 after acquiring an additional 4,483 shares during the period. 58.81% of the stock is owned by institutional investors.

Key Headlines Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap said comparable sales increased 2% year over year, marking a ninth consecutive quarter of positive comps and showing underlying demand remains intact. Gap Inc. Reports First Quarter Fiscal 2026 Results
• Positive Sentiment: The company returned $464 million to shareholders through dividends and buybacks and raised its full-year EPS outlook, which suggests management still sees earnings resilience despite near-term sales pressure. Gap Inc. Reports First Quarter Fiscal 2026 Results
• Neutral Sentiment: Several Wall Street firms lowered price targets but mostly kept constructive ratings, signaling valuation support even after the selloff. Bank of America cut its target to $26 with a neutral rating, while Wells Fargo, Barclays, Goldman Sachs and BTIG also adjusted targets around the mid-to-high $20s. Analyst price target updates
• Negative Sentiment: Gap lowered its full-year revenue outlook to 1% to 2% growth from 2% to 3%, citing slower Old Navy growth and softer discretionary spending, which points to tougher demand conditions ahead. Gap Cuts Full-Year Sales Outlook, Citing Slower Old Navy Growth
• Negative Sentiment: Q1 revenue of $3.50 billion and EPS of $0.38 both slightly missed estimates, and management’s cautious second-quarter guidance reinforced concerns that margin pressure from tariffs and growth spending could persist. Gap Q1 Earnings Miss Estimates, Comparable Sales Rise 2% Y/Y
• Negative Sentiment: Investors are also reacting to the brand mix, as strength at the Gap banner was offset by weakness at Old Navy and Athleta, raising questions about how broad the turnaround really is. Gap Stock Plunges as Strong Sales at Namesake Stores Are Weighed Down By Weakness at Old Navy, Athleta

About GAP

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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