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

Shares of The Gap, Inc. (NYSE:GAP) have been assigned a consensus recommendation of “Moderate Buy” from the eighteen analysts that are presently covering the firm, MarketBeat reports. Four analysts have rated the stock with a hold recommendation, twelve have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $30.0714.

A number of research firms have recently weighed in on GAP. BTIG Research lowered their price target on GAP from $31.00 to $28.00 and set a “buy” rating for the company in a report on Wednesday, May 20th. TD Cowen lowered their target price on GAP from $32.00 to $26.00 and set a “buy” rating for the company in a report on Monday, May 18th. Zacks Research cut GAP from a “strong-buy” rating to a “hold” rating in a report on Monday, February 2nd. The Goldman Sachs Group raised their target price on GAP from $29.00 to $32.00 and gave the company a “buy” rating in a report on Friday, January 30th. Finally, Weiss Ratings upgraded GAP from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, March 25th.

GAP Stock Performance

NYSE GAP opened at $23.38 on Tuesday. The stock has a market cap of $8.54 billion, a PE ratio of 10.88, a P/E/G ratio of 1.36 and a beta of 2.11. The company has a current ratio of 1.75, a quick ratio of 1.08 and a debt-to-equity ratio of 0.39. GAP has a twelve month low of $18.68 and a twelve month high of $29.36. The stock has a fifty day simple moving average of $24.22 and a 200-day simple moving average of $25.67.

GAP (NYSE:GAP) last released its quarterly earnings results on Thursday, March 5th. The company reported $0.45 earnings per share for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.01). The business had revenue of $4.24 billion for the quarter, compared to analysts’ expectations of $4.24 billion. GAP had a return on equity of 22.98% and a net margin of 5.31%.The business’s revenue for the quarter was up 2.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.54 earnings per share. GAP has set its FY 2026 guidance at 2.200-2.350 EPS. Equities analysts anticipate that GAP will post 2.29 earnings per share for the current year.

GAP Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Shareholders of record on Wednesday, July 8th will be issued a dividend of $0.175 per share. The ex-dividend date is Wednesday, July 8th. This represents a $0.70 dividend on an annualized basis and a yield of 3.0%. GAP’s dividend payout ratio is 32.56%.

Insider Activity at GAP

In other GAP news, insider Amanda J. Thompson sold 25,000 shares of the stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $25.14, for a total transaction of $628,500.00. Following the sale, the insider directly owned 86,228 shares in the company, valued at $2,167,771.92. This represents a 22.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Julie Gruber sold 5,302 shares of the stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $27.00, for a total transaction of $143,154.00. Following the sale, the insider owned 58,414 shares in the company, valued at approximately $1,577,178. This trade represents a 8.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 923,098 shares of company stock worth $22,648,158 over the last 90 days. 31.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On GAP

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Public Employees Retirement System of Ohio boosted its stake in shares of 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 during the period. Cullen Frost Bankers Inc. purchased a new position in shares of GAP in the 4th quarter valued at about $26,000. Plato Investment Management Ltd purchased a new position in shares of GAP in the 4th quarter valued at about $28,000. V Square Quantitative Management LLC purchased a new position in shares of GAP in the 4th quarter valued at about $31,000. Finally, Root Financial Partners LLC purchased a new position in shares of GAP in the 3rd quarter valued at about $27,000. Hedge funds and other institutional investors own 58.81% of the company’s 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.