GAP's (GAP) Buy Rating Reaffirmed at BTIG Research

Key Points

• BTIG Research reaffirmed its Buy rating on GAP and kept a $28 price target, implying about 12% upside from the current price.
• Analyst sentiment remains generally positive, with GAP holding a Moderate Buy consensus and a $29.21 average target price across Wall Street coverage.
• Despite some positives, GAP recently missed first-quarter EPS and revenue estimates and lowered its full-year sales outlook, citing softer demand at Old Navy and weaker discretionary spending.

GAP (NYSE:GAP - Get Free Report)'s stock had its "buy" rating restated by BTIG Research in a research note issued to investors on Friday,Benzinga reports. They presently have a $28.00 price objective on the stock. BTIG Research's target price would suggest a potential upside of 12.24% from the company's current price.

Several other research analysts have also issued reports on the stock. Evercore set a $20.00 price target on shares of GAP in a research note on Friday. Citigroup increased 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. JPMorgan Chase & Co. increased their price target on shares of GAP from $33.00 to $35.00 and gave the stock an "overweight" rating in a research note on Friday, March 20th. Zacks Research lowered shares of GAP from a "strong-buy" rating to a "hold" rating in a research note on Monday, February 2nd. Finally, Wall Street Zen lowered shares of GAP from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, GAP has a consensus rating of "Moderate Buy" and a consensus target price of $29.21.

GAP Trading Up 3.7%

NYSE:GAP opened at $24.95 on Friday. The company has a 50-day moving average price of $24.26 and a 200-day moving average price of $25.69. GAP has a 12 month low of $18.68 and a 12 month high of $29.36. The company has a current ratio of 1.75, a quick ratio of 1.08 and a debt-to-equity ratio of 0.39. The stock has a market cap of $9.11 billion, a price-to-earnings ratio of 11.60, a P/E/G ratio of 1.39 and a beta of 2.11.

GAP (NYSE:GAP - Get Free Report) last posted its 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 return on equity of 22.98% and a net margin of 5.31%.The company had revenue of $3.50 billion during the quarter, compared to analysts' expectations of $3.52 billion. During the same period in the prior year, the business posted $0.51 earnings per share. The company'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. Equities analysts predict that GAP will post 2.29 EPS for the current year.

Insider Buying and Selling at GAP

In other GAP news, insider Eric Kayen Chan sold 13,377 shares of the firm's stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $26.18, for a total transaction of $350,209.86. Following the completion of the sale, the insider directly owned 21,967 shares in the company, valued at approximately $575,096.06. This trade represents a 37.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Amanda J. Thompson sold 25,000 shares of the firm's stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $25.14, for a total transaction of $628,500.00. Following the sale, the insider owned 86,228 shares of the company's stock, valued at approximately $2,167,771.92. This represents a 22.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 923,098 shares of company stock worth $22,648,158 in the last 90 days. Insiders own 31.00% of the company's stock.

Institutional Trading of GAP

A number of institutional investors and hedge funds have recently bought and sold shares of GAP. Cullen Frost Bankers Inc. bought a new stake in GAP during the 4th quarter valued at about $26,000. Plato Investment Management Ltd bought a new stake in GAP during the 4th quarter valued at about $28,000. V Square Quantitative Management LLC bought a new stake in GAP during the 4th quarter valued at about $31,000. Cornerstone Planning Group LLC bought a new stake in GAP during the 3rd quarter valued at about $35,000. Finally, EverSource Wealth Advisors LLC increased its stake in GAP by 177.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company's stock valued at $153,000 after purchasing an additional 4,483 shares in the last quarter. 58.81% of the stock is currently owned by institutional investors.

Trending Headlines about GAP

Here are the key news stories impacting GAP this week:

• Negative Sentiment: Gap cut its full-year sales forecast, saying slower growth at Old Navy and weaker discretionary spending are hurting demand. The company now expects revenue growth of 1% to 2%, down from 2% to 3%, which raised concerns about consumer softness and near-term sales momentum. Article Title
• Negative Sentiment: The company missed first-quarter revenue expectations and posted EPS of $0.38 versus the $0.39 estimate, reinforcing worries that results are not keeping pace with analyst forecasts. Article Title
• Negative Sentiment: Management said Old Navy’s spring and summer assortment did not resonate with shoppers, a key reason the company lowered its outlook and why the stock dropped sharply in after-hours and premarket trading. Article Title
• Neutral Sentiment: Gap still reported some positives, including 1% revenue growth, 2% comparable-sales growth, and a raised full-year EPS outlook, but those upside points were outweighed by the cautious sales guidance. Article Title

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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