GAP (NYSE:GAP) Shares Down 7.1% – Here’s Why

The Gap, Inc. (NYSE:GAP) shares dropped 7.1% during trading on Monday . The stock traded as low as $21.83 and last traded at $21.7040. Approximately 4,212,180 shares were traded during trading, a decline of 44% from the average daily volume of 7,575,877 shares. The stock had previously closed at $23.37.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on GAP shares. Wall Street Zen downgraded GAP from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. JPMorgan Chase & Co. lifted their target price on shares of GAP from $33.00 to $35.00 and gave the company an “overweight” rating in a report on Friday, March 20th. The Goldman Sachs Group upped their price target on shares of GAP from $29.00 to $32.00 and gave the company a “buy” rating in a research report on Friday, January 30th. Citigroup increased their price target on shares of GAP from $25.00 to $27.00 and gave the stock a “neutral” rating in a research note on Friday, March 6th. Finally, Weiss Ratings raised shares of GAP from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, March 25th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $30.62.

GAP Price Performance

The company has a current ratio of 1.75, a quick ratio of 1.08 and a debt-to-equity ratio of 0.39. The stock has a fifty day simple moving average of $25.14 and a two-hundred day simple moving average of $25.76. The company has a market cap of $7.93 billion, a PE ratio of 10.09, a price-to-earnings-growth ratio of 1.35 and a beta of 2.11.

GAP (NYSE:GAP) last issued its 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). GAP had a return on equity of 22.98% and a net margin of 5.31%.The business had revenue of $4.24 billion for the quarter, compared to analysts’ expectations of $4.24 billion. During the same period last year, the company posted $0.54 earnings per share. The business’s quarterly 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, equities analysts predict that The Gap, Inc. will post 2.3 EPS for the current fiscal year.

GAP Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 29th. Shareholders of record on Wednesday, April 8th were given a $0.175 dividend. The ex-dividend date was Wednesday, April 8th. This is a positive change from GAP’s previous quarterly dividend of $0.17. This represents a $0.70 annualized dividend and a yield of 3.2%. GAP’s dividend payout ratio (DPR) is currently 32.56%.

Insider Buying and Selling

In other GAP news, insider Sarah Gilligan sold 69,912 shares of the business’s stock in a transaction 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 sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Julie Gruber sold 5,302 shares of the company’s stock in a transaction on Friday, April 17th. The stock was sold at an average price of $27.00, for a total transaction of $143,154.00. Following the transaction, the insider directly owned 58,414 shares in the company, valued at approximately $1,577,178. This trade represents a 8.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 923,098 shares of company stock valued at $22,648,158 in the last quarter. Corporate insiders own 31.00% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Cullen Frost Bankers Inc. purchased a new stake in shares of GAP during the 4th quarter worth approximately $26,000. Root Financial Partners LLC purchased a new position in GAP in the 3rd quarter valued at approximately $27,000. Plato Investment Management Ltd purchased a new position in GAP in 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 purchased a new stake in GAP during the third quarter worth $35,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

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.