The Gap, Inc. (NYSE:GAP) Receives Average Rating of “Moderate Buy” from Analysts

The Gap, Inc. (NYSE:GAP) has earned an average recommendation of “Moderate Buy” from the eighteen ratings firms that are currently covering the stock, MarketBeat.com reports. Six investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have given a strong buy rating to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $28.7143.

A number of research firms have issued reports on GAP. Citigroup raised their price target on shares of GAP from $25.00 to $27.00 and gave the stock a “neutral” rating in a report on Friday, March 6th. Zacks Research cut shares of GAP from a “strong-buy” rating to a “hold” rating in a report on Monday, February 2nd. Jefferies Financial Group reduced their target price on shares of GAP from $32.00 to $29.00 and set a “buy” rating for the company in a report on Friday. JPMorgan Chase & Co. reissued a “neutral” rating and set a $27.00 target price (down from $35.00) on shares of GAP in a report on Friday. Finally, Wall Street Zen cut shares of GAP from a “buy” rating to a “hold” rating in a report on Saturday, March 7th.

GAP Price Performance

Shares of GAP stock opened at $21.02 on Tuesday. 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 company’s 50-day simple moving average is $24.14 and its two-hundred day simple moving average is $25.65. GAP has a one year low of $18.68 and a one year high of $29.36. The company has a market capitalization of $7.68 billion, a P/E ratio of 8.28, a P/E/G ratio of 1.21 and a beta of 2.11.

GAP (NYSE:GAP) last released its quarterly earnings data 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). The business had revenue of $3.50 billion for 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% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.51 earnings per share. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. As a group, equities analysts anticipate that GAP will post 2.33 EPS for the current year.

GAP Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 29th. Investors of record on Wednesday, July 8th will be given a dividend of $0.175 per share. This represents a $0.70 annualized dividend and a yield of 3.3%. The ex-dividend date is Wednesday, July 8th. GAP’s dividend payout ratio (DPR) is currently 27.56%.

Insider Activity at GAP

In other news, insider Eric Kayen Chan sold 13,377 shares of GAP stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $26.18, for a total value of $350,209.86. Following the sale, the insider owned 21,967 shares in the company, valued at $575,096.06. This trade represents a 37.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Sarah Gilligan sold 69,912 shares of GAP 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 923,098 shares of company stock valued at $22,648,158 in the last quarter. 31.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On GAP

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

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.