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

Shares of The Gap, Inc. (NYSE:GAP) have received a consensus recommendation of “Moderate Buy” from the eighteen analysts that are presently covering the firm, MarketBeat Ratings reports. Eleven research analysts have rated the stock with a hold rating, five have given a buy rating and two have assigned a strong buy rating to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $26.7143.

A number of research firms have commented on GAP. Barclays reaffirmed an “equal weight” rating and set a $20.00 target price (down from $26.00) on shares of GAP in a report on Tuesday. BTIG Research set a $26.00 price target on GAP in a research report on Thursday, July 30th. Jefferies Financial Group cut GAP from a “buy” rating to a “hold” rating and reduced their price objective for the stock from $29.00 to $23.00 in a research note on Wednesday. Wells Fargo & Company reaffirmed an “equal weight” rating and issued a $22.00 price objective (down from $26.00) on shares of GAP in a report on Friday, August 7th. Finally, Weiss Ratings lowered shares of GAP from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, July 28th.

GAP Stock Performance

Shares of GAP stock opened at $20.58 on Friday. The firm has a market cap of $7.41 billion, a PE ratio of 8.10, a price-to-earnings-growth ratio of 1.21 and a beta of 2.05. The firm’s 50-day simple moving average is $20.24 and its 200-day simple moving average is $23.39. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.08 and a current ratio of 1.81. GAP has a 1 year low of $18.11 and a 1 year high of $29.36.

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

GAP Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be issued a $0.175 dividend. The ex-dividend date of this dividend is Wednesday, October 7th. This represents a $0.70 annualized dividend and a dividend yield of 3.4%. GAP’s payout ratio is 27.56%.

Institutional Investors Weigh In On GAP

Several institutional investors and hedge funds have recently bought and sold shares of the business. 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 purchasing an additional 900,855 shares during the last quarter. LSV Asset Management lifted its holdings in shares of GAP by 3.6% in the 4th quarter. LSV Asset Management now owns 3,462,702 shares of the company’s stock worth $88,645,000 after purchasing an additional 121,001 shares during the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of GAP by 13.0% in the 4th quarter. Bank of New York Mellon Corp now owns 3,195,934 shares of the company’s stock worth $81,816,000 after purchasing an additional 368,191 shares during the last quarter. Quent Capital LLC boosted its position in GAP by 1,900.2% during the 4th quarter. Quent Capital LLC now owns 21,202 shares of the company’s stock valued at $543,000 after purchasing an additional 20,142 shares during the period. Finally, BI Asset Management Fondsmaeglerselskab A S acquired a new position in GAP during the 4th quarter valued at approximately $4,801,000. Institutional investors and hedge funds own 58.81% of the company’s stock.

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.