GAP (NYSE:GAP) Stock Rating Lowered by Wall Street Zen

GAP (NYSE:GAP) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

A number of other equities analysts have also recently weighed in on GAP. Weiss Ratings restated a “buy (b-)” rating on shares of GAP in a research report on Monday, December 29th. Guggenheim began coverage on shares of GAP in a research note on Tuesday, December 9th. They set a “neutral” rating for the company. Citigroup upped their price target on shares of GAP from $25.00 to $27.00 and gave the stock a “neutral” rating in a research report on Friday. Wells Fargo & Company set a $30.00 price target on shares of GAP and gave the company an “overweight” rating in a research note on Tuesday, December 16th. Finally, Zacks Research cut GAP from a “strong-buy” rating to a “hold” rating in a report on Monday, February 2nd. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $30.46.

GAP Stock Down 14.4%

GAP stock opened at $23.28 on Friday. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.72 and a quick ratio of 0.97. The stock has a market capitalization of $8.66 billion, a PE ratio of 10.83, a price-to-earnings-growth ratio of 2.80 and a beta of 2.29. The business has a 50 day simple moving average of $27.27 and a 200-day simple moving average of $24.92. GAP has a 12 month low of $16.99 and a 12 month high of $29.36.

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

Insider Transactions 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 sale, the insider owned 37,395 shares in the company, valued at approximately $1,047,060. This represents a 44.51% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder John J. Fisher sold 3,971 shares of the firm’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $27.04, for a total transaction of $107,375.84. Following the completion of the transaction, the insider directly owned 746,781 shares in the company, valued at $20,192,958.24. This trade represents a 0.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 133,971 shares of company stock valued at $3,629,264. Corporate insiders own 30.56% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Cullen Frost Bankers Inc. purchased a new stake in shares of GAP in the fourth quarter valued at approximately $26,000. Plato Investment Management Ltd purchased a new position in GAP during the fourth quarter worth approximately $28,000. V Square Quantitative Management LLC acquired a new position in GAP during the fourth quarter worth $31,000. Root Financial Partners LLC purchased a new stake in GAP in the 3rd quarter valued at $27,000. Finally, Cornerstone Planning Group LLC purchased a new stake in GAP in the 3rd quarter valued at $35,000. 58.81% of the stock is currently owned by institutional investors and hedge funds.

Key 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

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.