GAP (NYSE:GAP) Shares Gap Down on Analyst Downgrade

The Gap, Inc. (NYSE:GAP)’s share price gapped down prior to trading on Friday after Wall Street Zen downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $27.20, but opened at $24.11. GAP shares last traded at $23.88, with a volume of 6,121,373 shares changing hands.

Other equities analysts have also recently issued reports about the stock. Evercore boosted their price objective on shares of GAP from $25.00 to $28.00 and gave the company an “outperform” rating in a research note on Friday, November 21st. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of GAP in a report on Monday, December 29th. Telsey Advisory Group boosted their price target on shares of GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a research note on Monday, March 2nd. Argus upgraded shares of GAP to a “strong-buy” rating in a research report on Thursday, January 22nd. Finally, Barclays reaffirmed an “overweight” rating on shares of GAP in a report on Tuesday, January 6th. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, GAP has an average rating of “Moderate Buy” and an average price target of $30.46.

Insider Activity at GAP

In other GAP news, insider Julie Gruber sold 30,000 shares of the stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $28.00, for a total value of $840,000.00. Following the completion of the transaction, the insider directly owned 37,395 shares of the company’s stock, valued at approximately $1,047,060. This trade represents a 44.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director William Sydney Fisher sold 11,140 shares of the business’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $26.81, for a total value of $298,663.40. Following the sale, the director directly owned 2,753,453 shares in the company, valued at $73,820,074.93. This trade represents a 0.40% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 133,971 shares of company stock worth $3,629,264 over the last 90 days. Company insiders own 30.56% of the company’s stock.

More GAP News

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Company raised its FY‑2026 targets: EPS guidance of $2.20–$2.35 (above consensus) and revenue guide of $15.7–$15.9B, which suggests stronger full‑year growth potential. The board also authorized a $1 billion share repurchase program. PR Newswire: Q4 results & FY26 outlook
• Positive Sentiment: Core brands showed underlying momentum: Q4 revenue rose ~2% Y/Y with comp growth at Old Navy, Gap and Banana Republic, indicating brand-level operational progress despite margin pressure. Zacks: Q4 earnings summary
• Positive Sentiment: Several brokers still see upside: JPMorgan kept an Overweight call while trimming its target to $33 (still well above the current price); Telsey raised its target earlier. These analyst endorsements support a constructive medium‑term view. TickerReport / Benzinga: JPMorgan target note
• Neutral Sentiment: Citigroup nudged its target up to $27 but kept a Neutral rating — a modestly constructive but cautious stance that may limit immediate bullish momentum. Benzinga: Citigroup target update
• Neutral Sentiment: Value/analyst writeups highlight GAP as a value opportunity given current multiples (P/E ~10) and turnaround narrative; useful context but not an immediate catalyst. Zacks: GAP as value stock
• Negative Sentiment: Investors reacted to a small EPS miss (reported $0.45 vs. ~$0.46 street estimate) and headline‑level revenue slightly below some forecasts — the misses triggered a selloff in high intraday volume. Proactive Investors: Shares fall after earnings miss
• Negative Sentiment: Athleta remains a drag: same‑store sales fell ~10% in Q4, pressuring margins and prompting management to say rebuilding will take time — a near‑term earnings headwind. WSJ: Athleta slump
• Negative Sentiment: Operational disruptions: historic winter storms forced ~800 temporary store closures in Q4, which hurt short‑term sales and was cited by management as a factor in the quarterly miss. CNBC: Winter storms impact
• Negative Sentiment: Macro/tail risks flagged: management and some outlets cited tariff pressures and margin headwinds that could keep near‑term profit below some analyst estimates. U.S. News: Tariff and profit concerns

Institutional Trading of GAP

Institutional investors have recently bought and sold shares of the company. Amundi purchased a new position in shares of GAP in the first quarter valued at $259,000. Bank of New York Mellon Corp increased its stake in shares of GAP by 5.3% during the 2nd quarter. Bank of New York Mellon Corp now owns 2,899,563 shares of the company’s stock worth $63,239,000 after purchasing an additional 145,427 shares in the last quarter. Campbell & CO Investment Adviser LLC acquired a new position in shares of GAP during the 2nd quarter worth approximately $1,129,000. Geode Capital Management LLC lifted its stake in GAP by 3.8% in the 2nd quarter. Geode Capital Management LLC now owns 4,166,545 shares of the company’s stock valued at $91,399,000 after buying an additional 151,297 shares in the last quarter. Finally, Police & Firemen s Retirement System of New Jersey grew its holdings in GAP by 18.6% during the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 87,700 shares of the company’s stock valued at $1,913,000 after buying an additional 13,723 shares during the last quarter. 58.81% of the stock is currently owned by hedge funds and other institutional investors.

GAP Stock Down 14.4%

The company has a market cap of $8.66 billion, a PE ratio of 10.83, a P/E/G ratio of 2.40 and a beta of 2.29. The firm has a 50-day simple moving average of $27.27 and a two-hundred day simple moving average of $24.95. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.72 and a quick ratio of 0.97.

GAP (NYSE:GAP) last posted its quarterly earnings data on Thursday, March 5th. The company reported $0.45 EPS for the quarter, meeting analysts’ consensus estimates of $0.45. The business had revenue of $4.24 billion for the quarter, compared to analyst estimates of $4.24 billion. GAP had a return on equity of 23.54% and a net margin of 5.31%.The business’s revenue for the quarter was up 2.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.54 earnings per share. GAP has set its FY 2026 guidance at 2.200-2.350 EPS. Research analysts anticipate that The Gap, Inc. will post 2.02 earnings per share for the current fiscal year.

GAP Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 29th. Shareholders of record on Wednesday, April 8th will be paid a dividend of $0.175 per share. The ex-dividend date of this dividend is Wednesday, April 8th. This represents a $0.70 annualized dividend and a dividend yield of 3.0%. This is an increase from GAP’s previous quarterly dividend of $0.17. GAP’s dividend payout ratio is 29.46%.

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.