Zacks Research Brokers Reduce Earnings Estimates for GAP

The Gap, Inc. (NYSE:GAP) – Analysts at Zacks Research decreased their Q1 2027 earnings per share (EPS) estimates for shares of GAP in a research report issued on Thursday, March 19th. Zacks Research analyst Team now forecasts that the company will post earnings of $0.37 per share for the quarter, down from their previous estimate of $0.48. Zacks Research has a “Hold” rating on the stock. The consensus estimate for GAP’s current full-year earnings is $2.02 per share. Zacks Research also issued estimates for GAP’s Q2 2027 earnings at $0.50 EPS, Q3 2027 earnings at $0.73 EPS, FY2027 earnings at $2.25 EPS, Q1 2028 earnings at $0.48 EPS, Q2 2028 earnings at $0.62 EPS, Q3 2028 earnings at $0.83 EPS, Q4 2028 earnings at $0.65 EPS, FY2028 earnings at $2.58 EPS and FY2029 earnings at $2.85 EPS.

GAP (NYSE:GAP) last issued its earnings results on Thursday, March 5th. The company reported $0.45 EPS for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.01). The firm had revenue of $4.24 billion during the quarter, compared to analysts’ expectations of $4.24 billion. GAP had a net margin of 5.31% and a return on equity of 22.98%. GAP’s quarterly revenue was up 2.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.54 EPS. GAP has set its FY 2026 guidance at 2.200-2.350 EPS.

Other equities analysts have also issued research reports about the company. Barclays reiterated an “overweight” rating on shares of GAP in a research note on Tuesday, January 6th. Argus raised GAP to a “strong-buy” rating in a report on Thursday, January 22nd. 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. JPMorgan Chase & Co. boosted their price target on GAP from $33.00 to $35.00 and gave the company an “overweight” rating in a report on Friday. Finally, The Goldman Sachs Group upped their price objective on GAP from $29.00 to $32.00 and gave the stock a “buy” rating in a research report on Friday, January 30th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $30.62.

GAP Trading Down 0.8%

NYSE GAP opened at $23.90 on Monday. GAP has a 1 year low of $16.99 and a 1 year high of $29.36. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.75 and a quick ratio of 1.08. The company has a market capitalization of $8.90 billion, a PE ratio of 11.11, a P/E/G ratio of 1.38 and a beta of 2.29. The company has a fifty day moving average of $26.69 and a 200 day moving average of $25.09.

GAP Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 29th. Shareholders of record on Wednesday, April 8th will be given a dividend of $0.175 per share. This is an increase from GAP’s previous quarterly dividend of $0.17. This represents a $0.70 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Wednesday, April 8th. GAP’s dividend payout ratio (DPR) is currently 30.70%.

Insider Buying and Selling at GAP

In other news, CEO Mark Breitbard sold 8,486 shares of the stock in a transaction that occurred on Thursday, March 19th. The stock was sold at an average price of $23.73, for a total transaction of $201,372.78. Following the transaction, the chief executive officer owned 135,884 shares in the company, valued at $3,224,527.32. This trade represents a 5.88% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Katrina O’connell sold 8,486 shares of GAP stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $23.74, for a total transaction of $201,457.64. Following the completion of the sale, the chief financial officer directly owned 11,503 shares in the company, valued at $273,081.22. This represents a 42.45% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 395,823 shares of company stock valued at $9,428,942. Company insiders own 31.00% of the company’s stock.

Hedge Funds Weigh In On GAP

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio lifted its stake in GAP by 0.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 71,867 shares of the company’s stock valued at $1,537,000 after buying an additional 447 shares in the last quarter. Oregon Public Employees Retirement Fund lifted its position in shares of GAP by 1.3% in the third quarter. Oregon Public Employees Retirement Fund now owns 45,799 shares of the company’s stock valued at $980,000 after acquiring an additional 600 shares in the last quarter. Cullen Frost Bankers Inc. acquired a new stake in shares of GAP in the fourth quarter worth approximately $26,000. Plato Investment Management Ltd acquired a new stake in shares of GAP in the fourth quarter worth approximately $28,000. Finally, V Square Quantitative Management LLC purchased a new stake in shares of GAP during the fourth quarter worth approximately $31,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Zacks Research lifted several longer‑term/seasonal EPS forecasts and full‑year targets (FY2027, FY2028 and FY2029 and some Q3 estimates), suggesting improvement in medium‑term profitability expectations. Analysts still carry a “Hold” rating, so the upgrades are constructive but not a buy signal.
• Neutral Sentiment: Press/consumer coverage highlights strong demand for core Basics (example: positive writeup about a $15 tank top), which can support same‑store sales and brand relevance but is not a direct earnings catalyst on its own. The Platonic Ideal of a Tank Top for $15
• Negative Sentiment: Zacks trimmed several near‑term quarterly EPS estimates (notably Q1 and Q2 of FY2027 and parts of FY2028), indicating nearer‑term cadence risks even as longer‑term estimates were raised. This mixed guidance shift can create uncertainty around upcoming quarters and weigh on the stock.
• Negative Sentiment: Recent insider sales: The CFO filed a large sale of common stock valued at roughly $3.66 million (reported 3/21). Significant director/executive sales at this scale often trigger investor concern about insider conviction. Insider Selling: GAP (NYSE:GAP) CFO Sells $3,658,900.05 in Stock
• Negative Sentiment: Follow‑on insider transactions: smaller but recent sales by the CFO (~$201.5k) and the CEO (~$201.4k) were reported 3/22. While smaller, clustered insider selling from top executives can amplify negative market reaction. Insider Selling: GAP (NYSE:GAP) CFO Sells $201,457.64 in Stock Insider Selling: GAP (NYSE:GAP) CEO Sells $201,372.78 in Stock

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.