Brokerages Set The Gap, Inc. (NYSE:GAP) PT at $27.36

The Gap, Inc. (NYSE:GAP) has earned an average rating of “Hold” from the eighteen brokerages that are covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, ten have issued a hold recommendation, five have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $27.3571.

GAP has been the subject of several recent analyst reports. JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a $27.00 price target (down from $35.00) on shares of GAP in a research report on Friday, May 29th. Wells Fargo & Company boosted their price objective on GAP from $22.00 to $23.00 and gave the company a “cautious” rating in a research report on Friday, August 28th. Morgan Stanley increased their target price on GAP from $21.00 to $23.00 and gave the stock an “equal weight” rating in a research note on Friday, August 28th. Evercore set a $20.00 target price on shares of GAP and gave the stock an “in-line” rating in a report on Friday, May 29th. Finally, TD Cowen lifted their price target on shares of GAP from $23.00 to $27.00 and gave the company a “buy” rating in a research note on Friday, August 28th.

GAP Price Performance

GAP opened at $22.43 on Thursday. The company has a quick ratio of 1.11, a current ratio of 1.82 and a debt-to-equity ratio of 0.38. GAP has a 12 month low of $18.11 and a 12 month high of $29.36. The company has a fifty day simple moving average of $20.24 and a 200 day simple moving average of $22.69. The stock has a market cap of $7.88 billion, a P/E ratio of 6.70, a P/E/G ratio of 0.95 and a beta of 2.08.

GAP (NYSE:GAP) last posted its earnings results on Thursday, August 27th. The company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.04. GAP had a return on equity of 19.72% and a net margin of 8.14%.The firm had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.69 billion. During the same period in the previous year, the company posted $0.57 earnings per share. The company’s revenue for the quarter was down 2.0% on a year-over-year basis. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. On average, research analysts expect that GAP will post 2.41 EPS for the current year.

GAP Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 7th will be issued a dividend of $0.175 per share. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date is Wednesday, October 7th. GAP’s dividend payout ratio (DPR) is presently 20.90%.

Hedge Funds Weigh In On GAP

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of GAP in the 2nd quarter valued at about $428,824,000. California State Teachers Retirement System boosted its position in shares of GAP by 1,732.5% during the second quarter. California State Teachers Retirement System now owns 5,116,415 shares of the company’s stock worth $95,575,000 after buying an additional 4,837,214 shares during the period. Bank of America Corp DE acquired a new position in shares of GAP during the second quarter worth about $30,345,000. Ameriprise Financial Inc. grew its holdings in shares of GAP by 42.7% during the second quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company’s stock worth $96,134,000 after buying an additional 1,318,322 shares in the last quarter. Finally, Miller Howard Investments Inc. NY grew its holdings in shares of GAP by 112.2% during the first quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company’s stock worth $41,237,000 after buying an additional 900,855 shares in the last quarter. 58.81% of the stock is owned by institutional investors and hedge funds.

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.