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

Key Points

• Analyst consensus: Seventeen analysts rate Gap a "Moderate Buy" (11 buys, 4 holds, 2 strong buys) with an average 1‑year price target of about $30.62.
• Recent results and outlook: Q4 EPS was $0.45 (missed by $0.01) on $4.24B revenue, and Gap set FY2026 guidance of $2.20–$2.35 EPS (market forecasts ~$2.30).
• Dividend and insider activity: Gap raised its quarterly dividend to $0.175 (annualized $0.70, ~2.8% yield), while insiders sold ~923,098 shares (~$22.65M) over the past 90 days despite owning 31% of the company.

Shares of The Gap, Inc. (NYSE:GAP - Get Free Report) have earned an average recommendation of "Moderate Buy" from the seventeen research firms that are covering the company, Marketbeat.com reports. Four investment analysts have rated the stock with a hold rating, eleven have given a buy rating and two have issued a strong buy rating on the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $30.6154.

GAP has been the topic of several analyst reports. Barclays reiterated an "overweight" rating on shares of GAP in a report on Tuesday, January 6th. Wall Street Zen lowered GAP from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. UBS Group upgraded GAP from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $26.00 to $41.00 in a report on Wednesday, January 7th. Telsey Advisory Group lifted their price target on GAP from $32.00 to $34.00 and gave the stock an "outperform" rating in a report on Monday, March 2nd. Finally, Zacks Research lowered GAP from a "strong-buy" rating to a "hold" rating in a report on Monday, February 2nd.

GAP Trading Up 1.4%

Shares of GAP opened at $24.60 on Friday. GAP has a 52-week low of $18.68 and a 52-week high of $29.36. The company has a quick ratio of 1.08, a current ratio of 1.75 and a debt-to-equity ratio of 0.39. The firm's fifty day moving average is $25.36 and its two-hundred day moving average is $25.63. The stock has a market cap of $8.99 billion, a PE ratio of 11.44, a price-to-earnings-growth ratio of 1.41 and a beta of 2.27.

GAP (NYSE:GAP - Get Free Report) last announced its earnings results on Thursday, March 5th. The company reported $0.45 earnings per share (EPS) 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 last year, the firm earned $0.54 EPS. The company's revenue for the quarter was up 2.1% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.200-2.350 EPS. Research analysts forecast that GAP will post 2.3 earnings per share for the current fiscal year.

GAP Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 29th. Stockholders of record on Wednesday, April 8th were issued a dividend of $0.175 per share. The ex-dividend date was Wednesday, April 8th. This represents a $0.70 annualized dividend and a dividend yield of 2.8%. This is a boost from GAP's previous quarterly dividend of $0.17. GAP's payout ratio is presently 32.56%.

Insider Buying and Selling at GAP

In other news, insider Julie Gruber sold 74,217 shares of GAP stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $23.85, for a total transaction of $1,770,075.45. Following the transaction, the insider owned 53,970 shares in the company, valued at $1,287,184.50. The trade was a 57.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Horacio Barbeito sold 113,684 shares of GAP stock in a transaction on Friday, March 20th. The stock was sold at an average price of $24.01, for a total value of $2,729,552.84. Following the transaction, the chief executive officer owned 115,024 shares in the company, valued at approximately $2,761,726.24. This represents a 49.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 923,098 shares of company stock worth $22,648,158. Corporate insiders own 31.00% of the company's stock.

Institutional Trading of GAP

Institutional investors and hedge funds have recently bought and sold shares of the stock. Cullen Frost Bankers Inc. purchased a new stake in GAP in the 4th quarter valued at about $26,000. Root Financial Partners LLC purchased a new stake in GAP in the 3rd quarter valued at about $27,000. Plato Investment Management Ltd purchased a new stake in GAP in the 4th quarter valued at about $28,000. V Square Quantitative Management LLC purchased a new stake in GAP in the 4th quarter valued at about $31,000. Finally, Cornerstone Planning Group LLC purchased a new stake in GAP in the 3rd quarter valued at about $35,000. 58.81% of the stock is currently owned by hedge funds and other institutional investors.

About GAP

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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