Wells Fargo & Company Issues Pessimistic Forecast for GAP (NYSE:GAP) Stock Price

Key Points

• Wells Fargo & Company has revised its price target for GAP from $24.00 to $22.00, maintaining an "equal weight" rating, suggesting a potential upside of 1.20% from the stock's previous close.
• Other analysts, including Morgan Stanley and UBS Group, have also significantly lowered their price targets, indicating a consensus trend of reduced optimism regarding GAP's stock performance.
• GAP's recent quarterly earnings reported earnings per share of $0.57, slightly above the consensus estimate, reflecting a year-over-year revenue growth of 0.1%.

GAP (NYSE:GAP - Free Report) had its price objective cut by Wells Fargo & Company from $24.00 to $22.00 in a research note issued to investors on Friday,Benzinga reports. They currently have an equal weight rating on the stock.

Several other equities research analysts have also recently weighed in on the stock. Citigroup restated a "neutral" rating and issued a $22.00 price objective (down previously from $30.00) on shares of GAP in a research report on Wednesday, August 20th. Wall Street Zen cut shares of GAP from a "buy" rating to a "hold" rating in a research note on Sunday, August 3rd. Zacks Research cut shares of GAP from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 27th. Barclays downgraded GAP from an "overweight" rating to an "equal weight" rating and reduced their price objective for the stock from $24.00 to $19.00 in a report on Friday, August 22nd. Finally, Telsey Advisory Group decreased their price objective on GAP from $26.00 to $24.00 and set a "market perform" rating on the stock in a research report on Monday, August 25th. Six investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $25.87.

GAP Price Performance

GAP stock traded up $0.61 during midday trading on Friday, reaching $22.62. 15,039,856 shares of the company's stock traded hands, compared to its average volume of 9,149,013. The company has a 50-day simple moving average of $21.10 and a two-hundred day simple moving average of $21.70. The company has a quick ratio of 0.96, a current ratio of 1.68 and a debt-to-equity ratio of 0.43. GAP has a 1-year low of $16.99 and a 1-year high of $29.29. The company has a market cap of $8.52 billion, a price-to-earnings ratio of 9.67, a PEG ratio of 2.46 and a beta of 2.09.

GAP (NYSE:GAP - Get Free Report) last announced its earnings results on Thursday, August 28th. The company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.55 by $0.02. GAP had a return on equity of 27.04% and a net margin of 5.86%.The company had revenue of $3.73 billion for the quarter, compared to analysts' expectations of $3.73 billion. During the same quarter in the prior year, the business earned $0.54 earnings per share. The business's revenue for the quarter was up .1% on a year-over-year basis. GAP has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, analysts anticipate that GAP will post 2.02 earnings per share for the current year.

GAP Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 29th. Shareholders of record on Wednesday, October 8th will be given a dividend of $0.165 per share. The ex-dividend date is Wednesday, October 8th. This represents a $0.66 annualized dividend and a dividend yield of 2.9%. GAP's payout ratio is presently 28.21%.

Institutional Investors Weigh In On GAP

Institutional investors have recently made changes to their positions in the stock. Hexagon Capital Partners LLC acquired a new position in GAP in the first quarter valued at about $30,000. First Horizon Advisors Inc. acquired a new position in shares of GAP during the 1st quarter worth about $75,000. Brooklyn Investment Group bought a new stake in shares of GAP in the 1st quarter valued at about $80,000. Deseret Mutual Benefit Administrators bought a new stake in shares of GAP in the 1st quarter valued at about $81,000. Finally, Covestor Ltd acquired a new stake in shares of GAP in the 1st quarter valued at approximately $82,000. 58.81% of the stock is owned by institutional investors and hedge funds.

About GAP

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections.