GAP (NYSE:GAP) Lowered to Hold Rating by Evercore

Evercore downgraded shares of GAP (NYSE:GAP) from a strong-buy rating to a hold rating in a research note published on Friday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the stock. Weiss Ratings raised shares of GAP from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, March 25th. Wall Street Zen cut shares of GAP from a “buy” rating to a “hold” rating in a research report on Saturday, March 7th. Barclays cut their price target on shares of GAP from $33.00 to $26.00 and set an “overweight” rating on the stock in a research report on Friday. BTIG Research reissued a “buy” rating and set a $28.00 price target on shares of GAP in a research report on Friday. Finally, Jefferies Financial Group cut their price target on shares of GAP from $32.00 to $29.00 and set a “buy” rating on the stock in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $28.71.

GAP Trading Down 15.4%

GAP opened at $21.14 on Friday. The stock has a market capitalization of $7.72 billion, a P/E ratio of 8.32, a P/E/G ratio of 1.45 and a beta of 2.11. GAP has a 12 month low of $18.68 and a 12 month high of $29.36. The firm’s fifty day simple moving average is $24.20 and its 200 day simple moving average is $25.66. The company has a current ratio of 1.75, a quick ratio of 1.08 and a debt-to-equity ratio of 0.39.

GAP (NYSE:GAP) last issued its quarterly 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). GAP had a return on equity of 21.17% and a net margin of 6.25%.The business had revenue of $3.50 billion for the quarter, compared to the consensus estimate of $3.52 billion. During the same period last year, the firm earned $0.51 earnings per share. The company’s quarterly revenue was up 1.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. As a group, research analysts anticipate that GAP will post 2.29 EPS for the current fiscal year.

GAP Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 29th. Stockholders of record on Wednesday, July 8th will be paid a dividend of $0.175 per share. The ex-dividend date is Wednesday, July 8th. This represents a $0.70 annualized dividend and a dividend yield of 3.3%. GAP’s payout ratio is currently 27.56%.

Insider Activity at GAP

In other news, CEO Mark Breitbard sold 119,155 shares of the business’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $23.80, for a total transaction of $2,835,889.00. Following the transaction, the chief executive officer directly owned 135,884 shares in the company, valued at $3,234,039.20. The trade was a 46.72% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Julie Gruber sold 74,217 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 $1,770,075.45. Following the transaction, the insider owned 53,970 shares in the company, valued at $1,287,184.50. This represents a 57.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 923,098 shares of company stock worth $22,648,158 over the last ninety days. Company insiders own 31.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of GAP. Amundi acquired a new position in shares of GAP during the 1st quarter worth about $259,000. EverSource Wealth Advisors LLC increased its stake in shares of GAP by 177.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock worth $153,000 after purchasing an additional 4,483 shares during the last quarter. Jump Financial LLC acquired a new position in shares of GAP during the 2nd quarter worth about $612,000. California State Teachers Retirement System increased its stake in shares of GAP by 0.8% during the 2nd quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock worth $4,940,000 after purchasing an additional 1,703 shares during the last quarter. Finally, Ameriprise Financial Inc. increased its stake in shares of GAP by 42.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company’s stock worth $96,134,000 after purchasing an additional 1,318,322 shares during the last quarter. 58.81% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about 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.