GAP (NYSE:GAP) Hits New 52-Week Low – Should You Sell?

The Gap, Inc. (NYSE:GAP) hit a new 52-week low on Tuesday . The company traded as low as $18.60 and last traded at $18.7340, with a volume of 17141862 shares changing hands. The stock had previously closed at $20.21.

Analysts Set New Price Targets

Several brokerages have issued reports on GAP. Jefferies Financial Group cut their target price on GAP from $32.00 to $29.00 and set a “buy” rating for the company in a research note on Friday, May 29th. TD Cowen decreased their price target on shares of GAP from $32.00 to $26.00 and set a “buy” rating on the stock in a research note on Monday, May 18th. Citigroup boosted their price objective on shares of GAP from $25.00 to $27.00 and gave the stock a “neutral” rating in a report on Friday, March 6th. Bank of America cut their price objective on shares of GAP from $29.00 to $26.00 and set a “neutral” rating for the company in a research note on Friday, May 29th. 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, May 29th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $28.71.

GAP Price Performance

The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41. The firm’s fifty day moving average price is $22.55 and its 200-day moving average price is $25.01. The stock has a market cap of $6.74 billion, a P/E ratio of 7.38, a PEG ratio of 1.19 and a beta of 2.03.

GAP (NYSE:GAP) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). The firm had revenue of $3.50 billion for the quarter, compared to the consensus estimate of $3.52 billion. GAP had a net margin of 6.25% and a return on equity of 21.13%. The company’s quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.51 earnings per share. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. Analysts forecast that The Gap, Inc. will post 2.34 earnings per share for the current year.

GAP Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 29th. Investors of record on Wednesday, July 8th will be paid a $0.175 dividend. This represents a $0.70 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date of this dividend is Wednesday, July 8th. GAP’s dividend payout ratio is presently 27.56%.

Insider Activity at GAP

In other GAP news, insider Amanda J. Thompson sold 25,000 shares of the firm’s 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 directly owned 86,228 shares in the company, valued at $2,167,771.92. This trade represents a 22.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Eric Kayen Chan sold 13,377 shares of GAP stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $26.18, for a total value of $350,209.86. Following the sale, the insider directly owned 21,967 shares in the company, valued at approximately $575,096.06. The trade was a 37.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 343,679 shares of company stock valued at $8,741,864. 31.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On GAP

Several hedge funds and other institutional investors have recently added to or reduced their stakes in GAP. Glenmede Trust Co. NA increased its stake in shares of GAP by 146.5% in the 1st quarter. Glenmede Trust Co. NA now owns 77,435 shares of the company’s stock worth $1,874,000 after acquiring an additional 46,017 shares in the last quarter. Kentucky Retirement Systems bought a new stake in GAP during the first quarter worth about $529,000. California State Teachers Retirement System boosted its stake in GAP by 23.5% during the first quarter. California State Teachers Retirement System now owns 279,201 shares of the company’s stock worth $6,757,000 after acquiring an additional 53,098 shares in the last quarter. Miller Howard Investments Inc. NY grew its holdings in GAP by 112.2% in the first quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company’s stock worth $41,237,000 after purchasing an additional 900,855 shares during the period. Finally, Public Employees Retirement System of Ohio increased its stake in shares of GAP by 2.7% during the fourth quarter. Public Employees Retirement System of Ohio now owns 73,812 shares of the company’s stock valued at $1,890,000 after purchasing an additional 1,945 shares in the last quarter. 58.81% of the stock is owned by hedge funds and other institutional investors.

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.