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

Shares of The Gap, Inc. (NYSE:GAP) have earned a consensus recommendation of “Moderate Buy” from the seventeen analysts that are currently covering the stock, MarketBeat reports. Five analysts have rated the stock with a hold recommendation, ten have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $30.4615.

GAP has been the topic of several research analyst reports. Weiss Ratings downgraded GAP from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, March 12th. Telsey Advisory Group boosted their price objective on GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a research report on Monday, March 2nd. Argus upgraded GAP to a “strong-buy” rating in a research note on Thursday, January 22nd. Evercore raised their target price on GAP from $25.00 to $28.00 and gave the company an “outperform” rating in a report on Friday, November 21st. Finally, Citigroup lifted their price target on GAP from $25.00 to $27.00 and gave the stock a “neutral” rating in a research report on Friday, March 6th.

GAP Price Performance

Shares of GAP stock opened at $24.03 on Thursday. The company has a current ratio of 1.75, a quick ratio of 1.08 and a debt-to-equity ratio of 0.39. The firm has a fifty day simple moving average of $26.86 and a 200-day simple moving average of $25.05. The stock has a market capitalization of $8.94 billion, a price-to-earnings ratio of 11.17, a PEG ratio of 1.38 and a beta of 2.29. GAP has a 1-year low of $16.99 and a 1-year high of $29.36.

GAP (NYSE:GAP) last posted its earnings results on Thursday, March 5th. The company reported $0.45 earnings per share (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 analyst estimates of $4.24 billion. GAP had a net margin of 5.31% and a return on equity of 22.98%. The business’s quarterly revenue was up 2.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.54 earnings per share. GAP has set its FY 2026 guidance at 2.200-2.350 EPS. On average, sell-side analysts expect that GAP will post 2.02 earnings per share for the current year.

GAP Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 29th. Stockholders of record on Wednesday, April 8th will be paid a $0.175 dividend. The ex-dividend date is Wednesday, April 8th. This is a positive change from GAP’s previous quarterly dividend of $0.17. This represents a $0.70 annualized dividend and a dividend yield of 2.9%. GAP’s dividend payout ratio is 30.70%.

Insider Buying and Selling

In other GAP news, insider Julie Gruber sold 74,217 shares of the firm’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $23.85, for a total value of $1,770,075.45. Following the sale, the insider directly owned 53,970 shares in the company, valued at $1,287,184.50. This trade represents a 57.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Katrina O’connell sold 153,413 shares of the business’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $23.85, for a total transaction of $3,658,900.05. Following the transaction, the chief financial officer owned 11,503 shares in the company, valued at approximately $274,346.55. The trade was a 93.02% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 378,851 shares of company stock valued at $9,026,111. 30.56% of the stock is owned by company insiders.

Institutional Investors Weigh In On GAP

Several hedge funds have recently made changes to their positions in the stock. Cullen Frost Bankers Inc. bought a new position in GAP during the fourth quarter valued at about $26,000. Root Financial Partners LLC acquired a new position in GAP in the 3rd quarter valued at approximately $27,000. Plato Investment Management Ltd bought a new stake in shares of GAP in the 4th quarter worth approximately $28,000. V Square Quantitative Management LLC acquired a new stake in shares of GAP during the 4th quarter worth approximately $31,000. Finally, Cornerstone Planning Group LLC acquired a new stake in shares of GAP during the 3rd quarter worth approximately $35,000. 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.