GAP (NYSE:GAP) Shares Down 6.5% - What's Next?

Key Points

• GAP shares fell 6.5% on Monday, trading as low as $18.97, well below the prior close of $20.21, with volume sharply below average.
• The decline came after a mixed quarterly report: EPS of $0.38 missed estimates by a penny and revenue of $3.50 billion also slightly missed expectations, even though revenue rose 1% year over year.
• Analysts remain cautiously positive overall, but several firms cut price targets recently; GAP now has a consensus rating of “Moderate Buy” with a target price of $28.71.

The Gap, Inc. (NYSE:GAP - Get Free Report) shares traded down 6.5% during trading on Monday . The stock traded as low as $18.97 and last traded at $18.8980. Approximately 2,832,698 shares changed hands during trading, a decline of 64% from the average session volume of 7,919,623 shares. The stock had previously closed at $20.21.

Analyst Ratings Changes

GAP has been the topic of a number of recent research reports. TD Cowen dropped their target price on GAP from $32.00 to $26.00 and set a "buy" rating on the stock in a report on Monday, May 18th. Wells Fargo & Company reduced their target price on GAP from $30.00 to $26.00 and set an "overweight" rating for the company in a report on Friday, May 29th. Citigroup upped their price target on shares of GAP from $25.00 to $27.00 and gave the stock a "neutral" rating in a research note on Friday, March 6th. The Goldman Sachs Group decreased their price objective on shares of GAP from $32.00 to $28.00 and set a "buy" rating on the stock in a report on Friday, May 29th. Finally, Jefferies Financial Group lowered their target price on shares of GAP from $32.00 to $29.00 and set a "buy" rating on the stock in a research report on Friday, May 29th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $28.71.

GAP Stock Down 7.1%

The firm has a market capitalization of $6.76 billion, a PE ratio of 7.38, a price-to-earnings-growth ratio of 1.19 and a beta of 2.03. The firm's 50-day moving average is $22.69 and its 200 day moving average is $25.07. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.08 and a current ratio of 1.81.

GAP (NYSE:GAP - Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The company reported $0.38 earnings per share (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 business had revenue of $3.50 billion during the quarter, compared to analysts' expectations of $3.52 billion. During the same period last year, the company earned $0.51 EPS. The firm's revenue for the quarter was up 1.0% on a year-over-year basis. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. As a group, research analysts forecast that The Gap, Inc. will post 2.34 earnings per share for the current fiscal year.

GAP Announces Dividend

The business 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 payout ratio is 27.56%.

Insider Buying and Selling

In other GAP news, insider Julie Gruber sold 5,302 shares of the company's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $27.00, for a total value of $143,154.00. Following the transaction, the insider directly owned 58,414 shares in the company, valued at approximately $1,577,178. This represents a 8.32% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Kayen Chan sold 13,377 shares of GAP stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $26.18, for a total transaction of $350,209.86. Following the sale, the insider owned 21,967 shares of the company's stock, valued at approximately $575,096.06. This trade represents a 37.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 343,679 shares of company stock valued at $8,741,864 over the last three months. Insiders own 31.00% of the company's stock.

Institutional Trading of GAP

A number of hedge funds have recently bought and sold shares of GAP. LSV Asset Management lifted its stake in shares of GAP by 3.6% during the 4th quarter. LSV Asset Management now owns 3,462,702 shares of the company's stock worth $88,645,000 after purchasing an additional 121,001 shares during the period. Miller Howard Investments Inc. NY grew its position in shares of GAP by 112.2% in the first quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company's stock valued at $41,237,000 after purchasing an additional 900,855 shares during the period. Quantbot Technologies LP acquired a new position in GAP in the third quarter valued at $1,845,000. Bank of New York Mellon Corp lifted its position in GAP by 13.0% during the fourth quarter. Bank of New York Mellon Corp now owns 3,195,934 shares of the company's stock worth $81,816,000 after buying an additional 368,191 shares during the period. Finally, Quent Capital LLC lifted its position in GAP by 1,900.2% during the fourth quarter. Quent Capital LLC now owns 21,202 shares of the company's stock worth $543,000 after buying an additional 20,142 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.