The Gap, Inc. (NYSE:GAP) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is cautiously positive on Gap, with 18 brokerages assigning it an average rating of “Moderate Buy.” The consensus 12-month price target is about $28.71, above the recent share price.
• Recent analyst updates have been mixed, including target cuts from Barclays and JPMorgan, while Citigroup and Jefferies maintained more constructive views. The revisions reflect some caution around near-term performance.
• Gap reported Q1 earnings of $0.38 per share, just below estimates, on revenue of $3.50 billion, and the stock was trading around $21.10, near the lower end of its 52-week range. The company also announced a quarterly dividend of $0.175 per share, or $0.70 annually, yielding about 3.3%.

Shares of The Gap, Inc. (NYSE:GAP - Get Free Report) have been given an average rating of "Moderate Buy" by the eighteen brokerages that are currently covering the company, Marketbeat.com reports. Six investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have issued a strong buy rating on the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $28.7143.

Several brokerages have recently commented on GAP. Citigroup boosted their target price on shares of GAP from $25.00 to $27.00 and gave the company a "neutral" rating in a research note on Friday, March 6th. Wall Street Zen downgraded shares of GAP from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. Barclays reduced their price target on shares of GAP from $33.00 to $26.00 and set an "overweight" rating on the stock in a research report on Friday, May 29th. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $27.00 target price (down from $35.00) on shares of GAP in a research note on Friday, May 29th. Finally, Jefferies Financial Group decreased their price target on shares of GAP from $32.00 to $29.00 and set a "buy" rating on the stock in a research note on Friday, May 29th.

Insider Activity at GAP

In other GAP news, insider Sarah Gilligan sold 69,912 shares of the company's stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $25.00, for a total transaction of $1,747,800.00. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, major shareholder John J. Fisher sold 300,000 shares of the stock in a transaction that occurred 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 sale, the insider directly owned 446,781 shares of the company's stock, valued at approximately $11,348,237.40. The trade was a 40.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 413,591 shares of company stock worth $10,489,664. Insiders own 31.00% of the company's stock.

Hedge Funds Weigh In On GAP

Hedge funds and other institutional investors have recently made changes to their positions in the company. Cullen Frost Bankers Inc. acquired a new stake in GAP during the 4th quarter valued at $26,000. Plato Investment Management Ltd acquired a new stake in GAP during the 4th quarter valued at $28,000. V Square Quantitative Management LLC acquired a new stake in GAP during the 4th quarter valued at $31,000. EverSource Wealth Advisors LLC lifted its holdings 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 during the last quarter. Finally, Atlas Capital Advisors Inc. acquired a new stake in GAP during the 4th quarter valued at $203,000. 58.81% of the stock is owned by institutional investors.

GAP Trading Down 0.2%

Shares of GAP stock opened at $21.10 on Friday. GAP has a 1 year low of $18.68 and a 1 year high of $29.36. The firm's fifty day simple moving average is $23.22 and its 200 day simple moving average is $25.29. The firm has a market capitalization of $7.60 billion, a P/E ratio of 8.31, a price-to-earnings-growth ratio of 1.25 and a beta of 2.03. The company has a current ratio of 1.81, a quick ratio of 1.08 and a debt-to-equity ratio of 0.41.

GAP (NYSE:GAP - Get Free Report) last announced 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). GAP had a return on equity of 21.13% and a net margin of 6.25%.The company had revenue of $3.50 billion for the quarter, compared to the consensus estimate of $3.52 billion. During the same period last year, the firm posted $0.51 EPS. The company's revenue was up 1.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. As a group, sell-side analysts predict that GAP will post 2.33 EPS for the current year.

GAP Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Shareholders of record on Wednesday, July 8th will be given a dividend of $0.175 per share. The ex-dividend date is Wednesday, July 8th. This represents a $0.70 dividend on an annualized basis and a yield of 3.3%. GAP's dividend payout ratio is presently 27.56%.

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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