Wells Fargo & Company Issues Pessimistic Forecast for GAP (NYSE:GAP) Stock Price

GAP (NYSE:GAP) had its target price dropped by analysts at Wells Fargo & Company from $30.00 to $26.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Wells Fargo & Company‘s target price suggests a potential upside of 25.39% from the stock’s current price.

GAP has been the topic of several other reports. Telsey Advisory Group upped their target price on GAP from $32.00 to $34.00 and gave the company an “outperform” rating in a report on Monday, March 2nd. Barclays reduced their target price on GAP from $33.00 to $26.00 and set an “overweight” rating on the stock in a report on Friday. Weiss Ratings raised shares of GAP from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, March 25th. The Goldman Sachs Group reduced their price objective on shares of GAP from $32.00 to $28.00 and set a “buy” rating for the company in a research report on Friday. Finally, Wall Street Zen cut GAP from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $28.86.

GAP Price Performance

GAP traded down $4.27 on Friday, hitting $20.74. 14,337,886 shares of the stock were exchanged, compared to its average volume of 7,826,546. 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 $7.58 billion, a price-to-earnings ratio of 9.65, a PEG ratio of 1.39 and a beta of 2.11. GAP has a 12 month low of $18.68 and a 12 month high of $29.36. The business has a 50-day moving average of $24.26 and a two-hundred day moving average of $25.69.

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

Insider Buying and Selling

In related news, major shareholder John J. Fisher sold 300,000 shares of GAP stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $25.40, for a total value of $7,620,000.00. Following the completion of the sale, the insider owned 446,781 shares of the company’s stock, valued at approximately $11,348,237.40. This trade represents a 40.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Sarah Gilligan sold 69,912 shares of the firm’s stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $25.00, for a total value of $1,747,800.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 923,098 shares of company stock worth $22,648,158 in the last quarter. 31.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in GAP. Amundi bought a new stake in shares of GAP during the 1st quarter valued at about $259,000. EverSource Wealth Advisors LLC boosted its position in shares of GAP by 177.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock valued at $153,000 after acquiring an additional 4,483 shares during the last quarter. Jump Financial LLC bought a new stake in shares of GAP during the 2nd quarter valued at about $612,000. California State Teachers Retirement System boosted its position in shares of GAP by 0.8% during the 2nd quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock valued at $4,940,000 after acquiring an additional 1,703 shares during the last quarter. Finally, Ameriprise Financial Inc. boosted its position in shares of GAP by 42.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company’s stock valued at $96,134,000 after acquiring an additional 1,318,322 shares during the last quarter. Institutional investors own 58.81% of the company’s stock.

Key Headlines Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap posted first-quarter EPS of $0.38, and the company said comparable sales rose 2% for a ninth straight quarter, with gross margin of 40.5% topping its outlook. It also raised full-year EPS guidance and returned $464 million to shareholders through buybacks and dividends. Article Title
• Positive Sentiment: Several analysts kept bullish views despite trimming price targets, including Barclays, Goldman Sachs, and BTIG, suggesting some upside remains from current levels. Article Title
• Neutral Sentiment: The company’s flagship Gap brand continued to perform well, but investors are waiting to see whether that strength can offset weakness at other banners. Article Title
• Negative Sentiment: Gap missed consensus on revenue and EPS, and management cut its full-year sales outlook after weaker-than-expected performance at Old Navy and Athleta. Article Title
• Negative Sentiment: Reuters reported the shares fell sharply in premarket trading as weak apparel demand and constrained consumer spending weighed on the broader sector. Article Title

About GAP

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.