GAP (NYSE:GAP) Downgraded by JPMorgan Chase & Co. to “Neutral”

GAP (NYSE:GAP) was downgraded by stock analysts at JPMorgan Chase & Co. from an “overweight” rating to a “neutral” rating in a research report issued on Friday. They presently have a $27.00 price target on the stock. JPMorgan Chase & Co.‘s price target would indicate a potential upside of 8.23% from the stock’s current price.

Several other research firms have also commented on GAP. Zacks Research lowered shares of GAP from a “strong-buy” rating to a “hold” rating in a research report on Monday, February 2nd. Wall Street Zen lowered GAP from a “buy” rating to a “hold” rating in a research note on Saturday, March 7th. The Goldman Sachs Group lowered their target price on GAP from $32.00 to $28.00 and set a “buy” rating on the stock in a report on Friday. Weiss Ratings raised GAP from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, March 25th. Finally, Telsey Advisory Group boosted 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. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and six have given a Hold rating to the company. According to MarketBeat, GAP presently has a consensus rating of “Moderate Buy” and an average target price of $28.64.

GAP Trading Up 3.7%

NYSE:GAP opened at $24.95 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 stock has a fifty day simple moving average of $24.26 and a 200-day simple moving average of $25.69. The company has a market capitalization of $9.11 billion, a PE ratio of 11.60, a price-to-earnings-growth ratio of 1.39 and a beta of 2.11.

GAP (NYSE:GAP) last issued its quarterly earnings data on Thursday, May 28th. The company reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). GAP had a net margin of 5.31% and a return on equity of 22.98%. The business had revenue of $3.50 billion during the quarter, compared to analyst estimates of $3.52 billion. During the same period in the previous year, the company posted $0.51 earnings per share. GAP’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. On average, equities research analysts expect that GAP will post 2.29 earnings per share for the current fiscal year.

Insider Activity

In other GAP news, CEO Mark Breitbard sold 119,155 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $23.80, for a total value of $2,835,889.00. Following the sale, the chief executive officer directly owned 135,884 shares of the company’s stock, valued at approximately $3,234,039.20. This trade represents a 46.72% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder John J. Fisher sold 300,000 shares of GAP stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $25.40, for a total value of $7,620,000.00. Following the completion of the sale, the insider owned 446,781 shares of the company’s stock, valued at $11,348,237.40. This trade represents a 40.17% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 923,098 shares of company stock valued at $22,648,158 in the last three months. Company insiders own 31.00% of the company’s stock.

Hedge Funds Weigh In On GAP

A number of large investors have recently bought and sold shares of the stock. Cullen Frost Bankers Inc. acquired a new stake in shares of GAP during the 4th quarter worth $26,000. Plato Investment Management Ltd purchased a new position in shares of GAP in the fourth quarter valued at $28,000. V Square Quantitative Management LLC acquired a new stake in shares of GAP during the fourth quarter valued at about $31,000. Cornerstone Planning Group LLC acquired a new position in shares of GAP in the third quarter worth about $35,000. Finally, EverSource Wealth Advisors LLC lifted its stake in shares of GAP by 177.0% in the second quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock worth $153,000 after acquiring an additional 4,483 shares in the last quarter. Hedge funds and other institutional investors own 58.81% of the company’s stock.

GAP News Summary

Here are the key news stories impacting GAP this week:

• Negative Sentiment: Gap cut its full-year sales forecast, saying slower growth at Old Navy and weaker discretionary spending are hurting demand. The company now expects revenue growth of 1% to 2%, down from 2% to 3%, which raised concerns about consumer softness and near-term sales momentum. Article Title
• Negative Sentiment: The company missed first-quarter revenue expectations and posted EPS of $0.38 versus the $0.39 estimate, reinforcing worries that results are not keeping pace with analyst forecasts. Article Title
• Negative Sentiment: Management said Old Navy’s spring and summer assortment did not resonate with shoppers, a key reason the company lowered its outlook and why the stock dropped sharply in after-hours and premarket trading. Article Title
• Neutral Sentiment: Gap still reported some positives, including 1% revenue growth, 2% comparable-sales growth, and a raised full-year EPS outlook, but those upside points were outweighed by the cautious sales guidance. Article Title

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.