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

The Gap, Inc. (NYSE:GAP) has been given a consensus recommendation of “Moderate Buy” by the seventeen ratings firms that are covering the stock, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold recommendation, eleven have assigned a buy recommendation and two have given a strong buy recommendation to the company. The average 12 month target price among brokers that have covered the stock in the last year is $30.6154.

GAP has been the subject of several analyst reports. Telsey Advisory Group increased their price objective on GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a research report on Monday, March 2nd. Robert W. Baird set a $33.00 target price on GAP and gave the company an “outperform” rating in a research report on Wednesday, December 17th. Zacks Research lowered GAP from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 2nd. UBS Group raised GAP from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $26.00 to $41.00 in a research report on Wednesday, January 7th. Finally, Barclays restated an “overweight” rating on shares of GAP in a report on Tuesday, January 6th.

Insider Buying and Selling at GAP

In related news, insider Sarah Gilligan sold 69,912 shares of the company’s stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $25.00, for a total transaction of $1,747,800.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Katrina O’connell sold 153,413 shares of the stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $23.85, for a total transaction of $3,658,900.05. Following the completion of the transaction, the chief financial officer owned 11,503 shares in the company, valued at $274,346.55. This represents a 93.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 579,419 shares of company stock valued at $13,906,295. 30.56% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On GAP

Large investors have recently modified their holdings of the stock. Cullen Frost Bankers Inc. acquired a new stake in GAP in the fourth quarter valued at $26,000. Root Financial Partners LLC purchased a new position in GAP in the third quarter valued at about $27,000. Plato Investment Management Ltd acquired a new stake in shares of GAP during the 4th quarter valued at approximately $28,000. V Square Quantitative Management LLC acquired a new position in GAP during the fourth quarter worth $31,000. Finally, Cornerstone Planning Group LLC acquired a new position in shares of GAP during the 3rd quarter worth $35,000. Hedge funds and other institutional investors own 58.81% of the company’s stock.

GAP Stock Performance

NYSE:GAP opened at $24.63 on Monday. The company’s 50-day moving average is $26.22 and its two-hundred day moving average is $25.16. GAP has a 1-year low of $16.99 and a 1-year high of $29.36. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.75 and a quick ratio of 1.08. The firm has a market capitalization of $9.00 billion, a price-to-earnings ratio of 11.45, a PEG ratio of 1.43 and a beta of 2.27.

GAP (NYSE:GAP) last announced its quarterly earnings results on Thursday, March 5th. The company reported $0.45 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.01). The firm had revenue of $4.24 billion for the quarter, compared to analyst estimates of $4.24 billion. GAP had a return on equity of 22.98% and a net margin of 5.31%.The firm’s quarterly revenue was up 2.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.54 EPS. GAP has set its FY 2026 guidance at 2.200-2.350 EPS. Analysts forecast that GAP will post 2.02 EPS for the current year.

GAP Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 29th. Shareholders of record on Wednesday, April 8th will be given a $0.175 dividend. The ex-dividend date of this dividend is Wednesday, April 8th. This represents a $0.70 dividend on an annualized basis and a yield of 2.8%. This is an increase from GAP’s previous quarterly dividend of $0.17. GAP’s dividend payout ratio is 30.70%.

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.