Bank of America Lowers GAP (NYSE:GAP) Price Target to $26.00

GAP (NYSE:GAP) had its price objective cut by equities research analysts at Bank of America from $29.00 to $26.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has a “neutral” rating on the stock. Bank of America‘s target price would suggest a potential upside of 26.12% from the company’s previous close.

A number of other equities research analysts also recently weighed in on the company. BTIG Research reaffirmed a “buy” rating and set a $28.00 price target on shares of GAP in a research note on Friday. Wall Street Zen downgraded GAP from a “buy” rating to a “hold” rating in a research note on Saturday, March 7th. Citigroup raised their price objective on GAP from $25.00 to $27.00 and gave the company a “neutral” rating in a research note on Friday, March 6th. Evercore set a $20.00 price objective on GAP and gave the company an “in-line” rating in a research note on Friday. Finally, The Goldman Sachs Group cut their price objective on GAP from $32.00 to $28.00 and set a “buy” rating on the stock in a research note on Friday. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $28.79.

GAP Stock Down 17.5%

Shares of GAP traded down $4.39 during midday trading on Friday, reaching $20.62. 23,519,478 shares of the stock were exchanged, compared to its average volume of 7,935,491. GAP has a 12-month low of $18.68 and a 12-month high of $29.36. The firm has a 50 day simple moving average of $24.26 and a 200-day simple moving average of $25.69. The company has a quick ratio of 1.08, a current ratio of 1.75 and a debt-to-equity ratio of 0.39. The company has a market cap of $7.53 billion, a price-to-earnings ratio of 9.57, a P/E/G ratio of 1.39 and a beta of 2.11.

GAP (NYSE:GAP) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.38 earnings per share for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). GAP had a return on equity of 22.98% and a net margin of 5.31%.The firm had revenue of $3.50 billion for the quarter, compared to analysts’ expectations of $3.52 billion. During the same period last year, the business earned $0.51 earnings per share. The firm’s revenue for the quarter was up 1.0% on a year-over-year basis. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. Research analysts forecast that GAP will post 2.29 EPS for the current year.

Insider Buying and Selling

In other GAP news, CFO Katrina O’connell sold 153,413 shares of GAP stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $23.85, for a total value of $3,658,900.05. Following the transaction, the chief financial officer directly owned 11,503 shares of the company’s stock, valued at $274,346.55. The trade was a 93.02% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Julie Gruber sold 74,217 shares of GAP stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $23.85, for a total value of $1,770,075.45. Following the completion of the transaction, the insider directly owned 53,970 shares in the company, valued at approximately $1,287,184.50. This represents a 57.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 923,098 shares of company stock worth $22,648,158. 31.00% of the stock is currently owned by company insiders.

Institutional Trading of GAP

Institutional investors have recently modified their holdings of the company. LSV Asset Management boosted its stake in GAP by 3.6% in the 4th quarter. LSV Asset Management now owns 3,462,702 shares of the company’s stock valued at $88,645,000 after buying an additional 121,001 shares in the last quarter. Quantbot Technologies LP acquired a new stake in GAP in the 3rd quarter valued at $1,845,000. Quent Capital LLC boosted its stake in GAP by 1,900.2% in the 4th quarter. Quent Capital LLC now owns 21,202 shares of the company’s stock valued at $543,000 after buying an additional 20,142 shares in the last quarter. Miller Howard Investments Inc. NY acquired a new stake in GAP in the 4th quarter valued at $20,561,000. Finally, Neo Ivy Capital Management acquired a new stake in GAP in the 3rd quarter valued at $3,555,000. Institutional investors and hedge funds own 58.81% of the company’s stock.

GAP News Summary

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap’s namesake brand remains a bright spot, with management saying it continued to gain market share and deliver strong sales. Gap Inc. Reports First Quarter Fiscal 2026 Results, Raises Full Year Earnings Per Share Outlook
• Positive Sentiment: Several Wall Street firms still have bullish ratings on GAP, including Wells Fargo, Barclays, Goldman Sachs, and BTIG, with price targets well above the current share price. Analyst price target updates
• Neutral Sentiment: Gap reported first-quarter EPS of $0.38 versus $0.39 expected and revenue of $3.50 billion versus $3.52 billion expected, a modest miss that adds to investor caution. Gap earnings report
• Negative Sentiment: Gap lowered its full-year revenue outlook to 1% to 2% growth from 2% to 3%, mainly due to slower-than-expected Old Navy performance and softer discretionary spending. Gap Cuts Full-Year Sales Outlook, Citing Slower Old Navy Growth
• Negative Sentiment: Reuters reported apparel retailers are falling on signs of constrained consumer spending, reinforcing fears that demand remains weak across the sector. Reuters apparel demand report

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.