The Gap, Inc. (NYSE:GAP) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Wall Street sentiment is positive on Gap, with 18 analysts giving the stock an average rating of “Moderate Buy.” The average 12-month price target is about $30.07, above the current share price.
• Recent analyst actions were mixed but still mostly constructive: JPMorgan raised its target to $35, while TD Cowen and BTIG trimmed their targets to $26 and $28, respectively. Several firms have also issued downgrades to hold.
• Gap reported Q1 earnings of $0.45 per share, narrowly missing estimates, while revenue came in at $4.24 billion and rose 2.1% year over year. The company also announced a quarterly dividend of $0.175 per share, equal to a 3.0% annualized yield.

Shares of The Gap, Inc. (NYSE:GAP - Get Free Report) have earned an average rating of "Moderate Buy" from the eighteen research firms that are presently covering the stock, Marketbeat reports. Four investment analysts have rated the stock with a hold rating, twelve have assigned a buy rating and two have issued a strong buy rating on the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $30.0714.

Several research analysts recently commented on the company. JPMorgan Chase & Co. increased their price objective on GAP from $33.00 to $35.00 and gave the company an "overweight" rating in a research note on Friday, March 20th. Zacks Research downgraded GAP from a "strong-buy" rating to a "hold" rating in a research note on Monday, February 2nd. TD Cowen reduced their price objective on GAP from $32.00 to $26.00 and set a "buy" rating for the company in a research note on Monday, May 18th. BTIG Research reduced their price objective on GAP from $31.00 to $28.00 and set a "buy" rating for the company in a research note on Wednesday, May 20th. Finally, Wall Street Zen downgraded GAP from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th.

GAP Trading Down 0.0%

Shares of GAP stock opened at $23.38 on Tuesday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.75 and a quick ratio of 1.08. The company has a market cap of $8.54 billion, a price-to-earnings ratio of 10.88, a PEG ratio of 1.36 and a beta of 2.11. The stock has a 50 day simple moving average of $24.22 and a 200-day simple moving average of $25.67. GAP has a 1-year low of $18.68 and a 1-year high of $29.36.

GAP (NYSE:GAP - Get Free Report) last announced its earnings results on Thursday, March 5th. The company reported $0.45 earnings per share for the quarter, missing the consensus estimate of $0.46 by ($0.01). GAP had a return on equity of 22.98% and a net margin of 5.31%.The business had revenue of $4.24 billion for the quarter, compared to analyst estimates of $4.24 billion. During the same period in the previous year, the company earned $0.54 earnings per share. The company's quarterly revenue was up 2.1% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.200-2.350 EPS. On average, equities research analysts expect that GAP will post 2.29 EPS for the current fiscal year.

GAP Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 29th. Investors of record on Wednesday, July 8th will be paid a $0.175 dividend. This represents a $0.70 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Wednesday, July 8th. GAP's dividend payout ratio is currently 32.56%.

Insider Buying and Selling

In other GAP news, insider Sarah Gilligan sold 69,912 shares of the company's stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $25.00, for a total value of $1,747,800.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Eric Kayen Chan sold 13,377 shares of the company's stock in a transaction on Friday, April 10th. The shares were sold at an average price of $26.18, for a total value of $350,209.86. Following the completion of the sale, the insider owned 21,967 shares of the company's stock, valued at approximately $575,096.06. The trade was a 37.85% 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 over the last quarter. Corporate insiders own 31.00% of the company's stock.

Institutional Trading of GAP

Several large investors have recently added to or reduced their stakes in the stock. Kentucky Retirement Systems purchased a new stake in GAP in the 1st quarter valued at $529,000. California State Teachers Retirement System grew its holdings in GAP by 23.5% in the 1st quarter. California State Teachers Retirement System now owns 279,201 shares of the company's stock valued at $6,757,000 after buying an additional 53,098 shares in the last quarter. Miller Howard Investments Inc. NY grew its holdings in GAP by 112.2% in the 1st quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company's stock valued at $41,237,000 after buying an additional 900,855 shares in the last quarter. Public Employees Retirement System of Ohio grew its holdings in GAP by 2.7% in the 4th quarter. Public Employees Retirement System of Ohio now owns 73,812 shares of the company's stock valued at $1,890,000 after buying an additional 1,945 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its holdings in GAP by 94.8% in the 4th quarter. Russell Investments Group Ltd. now owns 72,239 shares of the company's stock valued at $1,849,000 after buying an additional 35,146 shares in the last quarter. 58.81% of the stock is currently owned by hedge funds and other institutional investors.

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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