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

The Gap, Inc. (NYSE:GAP) has been given a consensus rating of “Moderate Buy” by the eighteen research firms that are currently covering the firm, MarketBeat Ratings reports. Eight analysts have rated the stock with a hold rating, eight have assigned a buy rating and two have assigned a strong buy rating to the company. The average 12 month target price among analysts that have covered the stock in the last year is $28.00.

A number of research analysts have weighed in on GAP shares. Morgan Stanley reissued an “equal weight” rating and set a $21.00 target price on shares of GAP in a research report on Monday, July 6th. Jefferies Financial Group dropped their price objective on GAP from $32.00 to $29.00 and set a “buy” rating on the stock in a research note on Friday, May 29th. Evercore set a $20.00 price objective on GAP and gave the stock an “in-line” rating in a research report on Friday, May 29th. Barclays decreased their target price on GAP from $33.00 to $26.00 and set an “overweight” rating for the company in a research note on Friday, May 29th. Finally, Bank of America lowered their target price on GAP from $29.00 to $26.00 and set a “neutral” rating on the stock in a report on Friday, May 29th.

Institutional Investors Weigh In On GAP

Hedge funds and other institutional investors have recently modified their holdings of the stock. Ameriprise Financial Inc. increased its position in GAP by 4.1% during the third quarter. Ameriprise Financial Inc. now owns 4,588,800 shares of the company’s stock worth $98,154,000 after acquiring an additional 180,991 shares during the period. Geode Capital Management LLC grew its position in GAP by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 4,291,846 shares of the company’s stock worth $110,750,000 after purchasing an additional 14,141 shares during the last quarter. LSV Asset Management increased its holdings in shares of GAP by 3.6% during 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 period. Bank of New York Mellon Corp increased its holdings in shares of GAP by 13.0% during 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 period. Finally, Miller Howard Investments Inc. NY raised its position 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. Institutional investors and hedge funds own 58.81% of the company’s stock.

GAP Trading Down 0.1%

NYSE:GAP opened at $20.32 on Wednesday. The company’s 50 day moving average is $20.97 and its 200-day moving average is $24.29. The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41. GAP has a 12 month low of $18.11 and a 12 month high of $29.36. The firm has a market cap of $7.32 billion, a price-to-earnings ratio of 8.00, a P/E/G ratio of 1.20 and a beta of 2.04.

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

GAP Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 29th. Stockholders of record on Wednesday, July 8th will be issued a dividend of $0.175 per share. The ex-dividend date is Wednesday, July 8th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.4%. GAP’s payout ratio is 27.56%.

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.