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

The Gap, Inc. (NYSE:GAP) has received a consensus recommendation of “Moderate Buy” from the eighteen ratings firms that are covering the company, MarketBeat reports. Six research analysts have rated the stock with a hold recommendation, eleven have given a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $28.8571.

GAP has been the subject of several recent analyst reports. Zacks Research upgraded shares of GAP from a “strong sell” rating to a “hold” rating in a research note on Monday, October 20th. Morgan Stanley upped their price target on GAP from $30.00 to $31.00 and gave the stock an “overweight” rating in a report on Friday, November 21st. Evercore ISI raised their price objective on GAP from $25.00 to $28.00 and gave the company an “outperform” rating in a research note on Friday, November 21st. The Goldman Sachs Group boosted their target price on GAP from $26.00 to $29.00 and gave the stock a “buy” rating in a research report on Friday, November 21st. Finally, Wells Fargo & Company set a $30.00 price target on GAP and gave the company an “overweight” rating in a research report on Tuesday, December 16th.

GAP Stock Down 1.5%

GAP stock opened at $26.15 on Friday. The stock has a 50 day moving average of $25.09 and a two-hundred day moving average of $22.77. GAP has a twelve month low of $16.99 and a twelve month high of $29.29. The stock has a market capitalization of $9.73 billion, a price-to-earnings ratio of 11.68, a PEG ratio of 2.95 and a beta of 2.28. The company has a current ratio of 1.72, a quick ratio of 0.97 and a debt-to-equity ratio of 0.41.

GAP (NYSE:GAP) last released its earnings results on Tuesday, November 25th. The company reported $0.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.58 by $0.04. GAP had a return on equity of 24.91% and a net margin of 5.57%.The business had revenue of $3.94 billion for the quarter, compared to analyst estimates of $3.90 billion. During the same quarter in the previous year, the company posted $0.72 earnings per share. The company’s revenue for the quarter was up 3.0% compared to the same quarter last year. As a group, research analysts expect 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, January 28th. Shareholders of record on Wednesday, January 7th will be given a dividend of $0.165 per share. The ex-dividend date is Wednesday, January 7th. This represents a $0.66 dividend on an annualized basis and a yield of 2.5%. GAP’s payout ratio is presently 29.46%.

Insider Activity

In related news, Director William Sydney Fisher sold 400,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $27.02, for a total value of $10,808,000.00. Following the sale, the director owned 2,853,453 shares of the company’s stock, valued at approximately $77,100,300.06. This represents a 12.29% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Robert J. Fisher sold 500,000 shares of the firm’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $27.45, for a total value of $13,725,000.00. Following the transaction, the director directly owned 2,329,502 shares of the company’s stock, valued at $63,944,829.90. The trade was a 17.67% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 1,349,044 shares of company stock worth $36,857,065. 30.56% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in GAP. LSV Asset Management grew its holdings in GAP by 101.0% in the second quarter. LSV Asset Management now owns 3,184,477 shares of the company’s stock valued at $69,453,000 after purchasing an additional 1,600,041 shares during the period. Ameriprise Financial Inc. increased its holdings in shares of GAP by 42.7% during the 2nd 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 during the last quarter. Jump Financial LLC raised its position in shares of GAP by 2,197.8% in the 3rd quarter. Jump Financial LLC now owns 645,150 shares of the company’s stock worth $13,800,000 after buying an additional 617,073 shares during the period. CX Institutional purchased a new position in shares of GAP in the 3rd quarter worth $6,053,000. Finally, Corebridge Financial Inc. acquired a new position in GAP in the first quarter valued at $5,062,000. Hedge funds and other institutional investors own 58.81% of the company’s stock.

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.