GAP (NYSE:GAP) Price Target Cut to $26.00 by Analysts at Bank of America

GAP (NYSE:GAP) had its target price lowered by Bank of America from $29.00 to $26.00 in a research report sent to investors on Friday morning,Benzinga reports. The brokerage currently has a neutral rating on the stock.

Several other equities analysts also recently commented on GAP. Wells Fargo & Company lowered their target price on shares of GAP from $30.00 to $26.00 and set an “overweight” rating on the stock in a research report on Friday. Wall Street Zen downgraded shares of GAP from a “buy” rating to a “hold” rating in a research report on Saturday, March 7th. BTIG Research reissued a “buy” rating and set a $28.00 target price on shares of GAP in a research report on Friday. Telsey Advisory Group increased their target price on shares of GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a research report on Monday, March 2nd. Finally, Evercore set a $20.00 target price on shares of GAP and gave the stock an “in-line” rating in a research report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $28.71.

GAP Trading Down 15.4%

GAP stock opened at $21.14 on Friday. 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 $7.72 billion, a price-to-earnings ratio of 8.32, a PEG ratio of 1.45 and a beta of 2.11. GAP has a one year low of $18.68 and a one year high of $29.36. The company’s fifty day moving average price is $24.20 and its two-hundred day moving average price is $25.66.

GAP (NYSE:GAP) last posted its earnings results on Thursday, May 28th. The company reported $0.38 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.01). The business had revenue of $3.50 billion for the quarter, compared to analyst estimates of $3.52 billion. GAP had a return on equity of 21.17% and a net margin of 6.25%.The company’s quarterly revenue was up 1.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.51 earnings per share. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, analysts forecast that GAP will post 2.29 earnings per share for the current fiscal year.

GAP Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 29th. Stockholders of record on Wednesday, July 8th will be given a $0.175 dividend. This represents a $0.70 annualized dividend and a dividend yield of 3.3%. The ex-dividend date of this dividend is Wednesday, July 8th. GAP’s dividend payout ratio (DPR) is currently 27.56%.

Insider Buying and Selling

In related news, insider Amanda J. Thompson sold 25,000 shares of the stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $25.14, for a total value of $628,500.00. Following the completion of the sale, the insider owned 86,228 shares in the company, valued at approximately $2,167,771.92. This trade represents a 22.48% decrease in their ownership of the stock. The transaction 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 the stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $25.40, for a total transaction of $7,620,000.00. Following the completion of the sale, the insider owned 446,781 shares of the company’s stock, valued at approximately $11,348,237.40. The trade was a 40.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 923,098 shares of company stock valued at $22,648,158 in the last quarter. Insiders own 31.00% of the company’s stock.

Institutional Investors Weigh In On GAP

Several hedge funds have recently made changes to their positions in GAP. Amundi bought a new stake in shares of GAP in the first quarter valued at about $259,000. 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 valued at $153,000 after buying an additional 4,483 shares during the period. Jump Financial LLC bought a new stake in shares of GAP in the second quarter valued at about $612,000. California State Teachers Retirement System lifted its stake in shares of GAP by 0.8% in the second quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock valued at $4,940,000 after buying an additional 1,703 shares during the period. Finally, Ameriprise Financial Inc. lifted its stake in shares of GAP by 42.7% in the second quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company’s stock valued at $96,134,000 after buying an additional 1,318,322 shares during the period. Institutional investors own 58.81% of the company’s stock.

Key Stories Impacting GAP

Here are the key news stories impacting GAP this week:

• Negative Sentiment: The Gap reported Q1 EPS of $0.38, missing estimates, and revenue of $3.50 billion, also slightly below expectations. The market is reacting to the earnings miss and lower revenue trend. Article Title
• Negative Sentiment: Management lowered fiscal 2026 revenue guidance to 1% to 2% growth from 2% to 3%, citing slower Old Navy growth and weaker-than-expected spring/summer demand. Article Title
• Negative Sentiment: Several headlines highlighted that shares fell sharply after the company’s cautious Q2 outlook and sales guidance reset, with analysts and media focusing on the weak consumer backdrop and pressure on nonessential spending. Article Title
• Neutral Sentiment: Gap still posted 2% comparable sales growth for a ninth straight quarter, and the flagship Gap brand remained relatively strong, which partially offsets the weaker outlook. Article Title
• Neutral Sentiment: Analysts broadly kept positive or neutral ratings but lowered price targets, signaling that Wall Street sees upside from current levels, while acknowledging slower near-term growth. Article Title
• Negative Sentiment: A shareholder investigation notice added another overhang, reflecting investor concern that the quarter’s results may have involved disclosure or securities-law issues. 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.