GAP (NYSE:GAP) Trading Down 6.5% – Here’s Why

The Gap, Inc. (NYSE:GAP)’s share price fell 6.5% during trading on Monday . The company traded as low as $18.97 and last traded at $18.8980. 2,832,698 shares changed hands during mid-day trading, a decline of 64% from the average daily volume of 7,919,623 shares. The stock had previously closed at $20.21.

Wall Street Analyst Weigh In

GAP has been the subject of several analyst reports. Citigroup raised their price target on shares of GAP from $25.00 to $27.00 and gave the stock a “neutral” rating in a report on Friday, March 6th. Evercore set a $20.00 price objective on shares of GAP and gave the company an “in-line” rating in a research note on Friday, May 29th. Jefferies Financial Group decreased their price objective on shares of GAP from $32.00 to $29.00 and set a “buy” rating for the company in a research report on Friday, May 29th. Bank of America lowered their target price 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, Wall Street Zen lowered shares of GAP from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, GAP currently has an average rating of “Moderate Buy” and a consensus target price of $28.71.

GAP Stock Down 0.4%

The company has a market cap of $6.72 billion, a price-to-earnings ratio of 7.35, a P/E/G ratio of 1.10 and a beta of 2.03. The stock’s 50-day moving average is $22.38 and its 200-day moving average is $24.96. The company has a current ratio of 1.81, a quick ratio of 1.08 and a debt-to-equity ratio of 0.41.

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). GAP had a return on equity of 21.13% and a net margin of 6.25%.The company had revenue of $3.50 billion during the quarter, compared to analyst estimates of $3.52 billion. During the same quarter in the previous year, the business posted $0.51 earnings per share. The company’s revenue for the quarter was up 1.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, analysts anticipate that The Gap, Inc. will post 2.34 earnings per share for the current fiscal year.

GAP Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Stockholders of record on Wednesday, July 8th will be paid a $0.175 dividend. The ex-dividend date is Wednesday, July 8th. This represents a $0.70 annualized dividend and a dividend yield of 3.8%. GAP’s dividend payout ratio (DPR) is currently 27.56%.

Insider Transactions at GAP

In related news, insider Julie Gruber sold 5,302 shares of the company’s 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 transaction, the insider directly owned 58,414 shares of the company’s stock, valued at approximately $1,577,178. This represents a 8.32% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amanda J. Thompson sold 25,000 shares of the company’s stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $25.14, for a total value of $628,500.00. Following the transaction, the insider directly 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 SEC filing for this sale provides additional information. Over the last quarter, insiders sold 343,679 shares of company stock valued at $8,741,864. 31.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On GAP

A number of institutional investors have recently modified their holdings of the company. Ameriprise Financial Inc. increased its stake in GAP by 4.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 4,588,800 shares of the company’s stock valued at $98,154,000 after purchasing an additional 180,991 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of GAP by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 4,291,846 shares of the company’s stock valued at $110,750,000 after buying an additional 14,141 shares in the last quarter. LSV Asset Management lifted its stake in shares of GAP by 3.6% in the fourth quarter. LSV Asset Management now owns 3,462,702 shares of the company’s stock valued at $88,645,000 after buying an additional 121,001 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in shares of GAP by 13.0% during the fourth quarter. Bank of New York Mellon Corp now owns 3,195,934 shares of the company’s stock valued at $81,816,000 after buying an additional 368,191 shares during the last quarter. Finally, Miller Howard Investments Inc. NY grew its holdings in shares of GAP by 112.2% during the first quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company’s stock valued at $41,237,000 after buying an additional 900,855 shares during the last quarter. 58.81% of the stock is owned by institutional investors and hedge funds.

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.