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

Key Points

• Analysts maintain a “Moderate Buy” consensus on Gap, with seven buy ratings, two strong-buy ratings and nine holds among 18 brokerages. The average 12-month price target is $27.57, above the reported share price of $20.46.
• Gap’s latest quarterly results slightly missed expectations, with EPS of $0.38 versus $0.39 forecast and revenue of $3.50 billion versus $3.52 billion expected, although revenue increased 1% year over year.
• The company pays a quarterly dividend of $0.175 per share, equivalent to an annualized $0.70 dividend and a 3.4% yield. Institutional investors own approximately 58.81% of Gap’s outstanding stock.

The Gap, Inc. (NYSE:GAP - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the eighteen brokerages that are currently covering the stock, MarketBeat reports. Nine research analysts have rated the stock with a hold rating, seven have issued a buy rating and two have assigned a strong buy rating to the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $27.5714.

A number of brokerages have recently commented on GAP. The Goldman Sachs Group dropped their target price 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. Bank of America decreased their price target on shares of GAP from $29.00 to $26.00 and set a "neutral" rating for the company in a research note on Friday, May 29th. Morgan Stanley reissued an "equal weight" rating and set a $21.00 price target on shares of GAP in a research report on Monday, July 6th. TD Cowen lowered their price target on shares of GAP from $32.00 to $26.00 and set a "buy" rating for the company in a research report on Monday, May 18th. Finally, Evercore set a $20.00 price objective on shares of GAP and gave the stock an "in-line" rating in a research note on Friday, May 29th.

Institutional Trading of GAP

Several institutional investors have recently added to or reduced their stakes in the business. Cullen Frost Bankers Inc. bought a new stake in GAP in the 4th quarter worth approximately $26,000. Plato Investment Management Ltd bought a new position in shares of GAP during the 4th quarter valued at $28,000. Global Retirement Partners LLC bought a new position in shares of GAP during the 2nd quarter valued at $29,000. V Square Quantitative Management LLC purchased a new position in shares of GAP in the 4th quarter worth $31,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of GAP in the 2nd quarter worth $50,000. 58.81% of the stock is currently owned by hedge funds and other institutional investors.

GAP Stock Down 0.3%

NYSE GAP opened at $20.46 on Friday. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.81 and a quick ratio of 1.08. The stock has a market capitalization of $7.37 billion, a PE ratio of 8.06, a PEG ratio of 1.21 and a beta of 2.05. GAP has a 1 year low of $18.11 and a 1 year high of $29.36. The business's 50-day moving average is $20.30 and its 200 day moving average is $23.60.

GAP (NYSE:GAP - Get Free Report) last released its quarterly earnings results 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). GAP had a net margin of 6.25% and a return on equity of 21.13%. The company had revenue of $3.50 billion during the quarter, compared to the consensus estimate of $3.52 billion. During the same quarter last year, the firm earned $0.51 EPS. The business's revenue was up 1.0% on a year-over-year basis. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. Sell-side analysts forecast that GAP will post 2.34 earnings per share for the current year.

GAP Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 29th. Investors of record on Wednesday, July 8th were given a dividend of $0.175 per share. This represents a $0.70 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend was Wednesday, July 8th. GAP's dividend payout ratio is 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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