The Gap, Inc. (NYSE:GAP) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Wall Street is cautiously positive on Gap. The stock has a consensus rating of “Moderate Buy” from 18 analysts, with an average 12-month price target of $28.00 versus a recent share price around $20.07.
• Recent results were slightly softer than expected. Gap reported $0.38 in EPS, missing estimates by a penny, while revenue of $3.50 billion also came in just below forecasts and was up only 1% year over year.
• The company is still offering income to shareholders. Gap announced a quarterly dividend of $0.175 per share, implying an annualized dividend of $0.70 and a yield of about 3.5%.

The Gap, Inc. (NYSE:GAP - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the eighteen ratings firms that are currently covering the stock, Marketbeat.com reports. Eight analysts have rated the stock with a hold recommendation, eight have given a buy recommendation and two have given a strong buy recommendation to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $28.00.

GAP has been the topic of several research analyst reports. BTIG Research reissued a "buy" rating and issued a $28.00 price target on shares of GAP in a report on Friday, May 29th. Weiss Ratings cut GAP from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, July 7th. 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 report on Friday, May 29th. Barclays lowered their target price on GAP from $33.00 to $26.00 and set an "overweight" rating on the stock in a research note on Friday, May 29th. Finally, Jefferies Financial Group reduced their price target on GAP from $32.00 to $29.00 and set a "buy" rating for the company in a research note on Friday, May 29th.

GAP Stock Performance

Shares of NYSE GAP opened at $20.07 on Wednesday. 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 has a 12 month low of $18.11 and a 12 month high of $29.36. The stock has a 50 day moving average of $21.19 and a 200-day moving average of $24.41. The company has a market capitalization of $7.22 billion, a P/E ratio of 7.90, a P/E/G ratio of 1.17 and a beta of 2.04.

GAP (NYSE:GAP - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.01). The company had revenue of $3.50 billion during the quarter, compared to the consensus estimate of $3.52 billion. GAP had a net margin of 6.25% and a return on equity of 21.13%. GAP's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.51 earnings per share. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. As a group, equities research analysts predict that GAP will post 2.34 EPS for the current year.

GAP Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Stockholders of record on Wednesday, July 8th will be issued a dividend of $0.175 per share. The ex-dividend date of this dividend is Wednesday, July 8th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.5%. GAP's dividend payout ratio (DPR) is currently 27.56%.

Insider Activity

In related 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 31.00% of the company's stock.

Institutional Trading of GAP

A number of institutional investors have recently bought and sold shares of GAP. Cullen Frost Bankers Inc. bought a new position in shares of GAP during the fourth quarter worth approximately $26,000. Plato Investment Management Ltd bought a new position in GAP during the 4th quarter worth $28,000. V Square Quantitative Management LLC bought a new position in GAP during the 4th quarter worth $31,000. EverSource Wealth Advisors LLC raised its holdings in GAP by 177.0% in the 2nd 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 in the last quarter. Finally, Atlas Capital Advisors Inc. acquired a new position in GAP in the 4th quarter valued at $203,000. Institutional investors 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.

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