The Gap, Inc. (NYSE:GAP) Stock Has Average Price Target of $27.07

The Gap, Inc. (NYSE:GAP) has earned a consensus rating of “Hold” from the nineteen brokerages that are currently covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, eleven have given a hold recommendation, five have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 12-month price objective among brokers that have covered the stock in the last year is $27.07.

A number of brokerages have recently commented on GAP. BTIG Research lifted their target price on GAP from $26.00 to $27.00 and gave the stock a “buy” rating in a report on Friday, August 28th. Jefferies Financial Group downgraded GAP from a “buy” rating to a “hold” rating and lowered their price target for the stock from $29.00 to $23.00 in a research report on Wednesday, August 12th. TD Cowen lifted their price objective on shares of GAP from $23.00 to $27.00 and gave the stock a “buy” rating in a research note on Friday, August 28th. Morgan Stanley boosted their price objective on shares of GAP from $21.00 to $23.00 and gave the company an “equal weight” rating in a research report on Friday, August 28th. Finally, Barclays increased their target price on shares of GAP from $20.00 to $23.00 and gave the company an “equal weight” rating in a research note on Friday, August 28th.

GAP Trading Down 0.9%

Shares of GAP opened at $22.53 on Monday. The stock has a market capitalization of $7.91 billion, a PE ratio of 6.73, a P/E/G ratio of 0.95 and a beta of 2.05. The company’s fifty day moving average is $21.15 and its 200 day moving average is $22.03. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.11 and a current ratio of 1.82. GAP has a fifty-two week low of $18.11 and a fifty-two week high of $29.36.

GAP (NYSE:GAP) last issued its quarterly earnings data on Thursday, August 27th. The company reported $0.52 EPS for the quarter, topping analysts’ consensus estimates of $0.48 by $0.04. The business had revenue of $3.65 billion during the quarter, compared to analysts’ expectations of $3.69 billion. GAP had a net margin of 8.14% and a return on equity of 19.72%. The business’s revenue was down 2.0% on a year-over-year basis. During the same period last year, the company posted $0.57 EPS. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. Sell-side analysts expect that GAP will post 2.41 earnings per share for the current fiscal year.

GAP Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be paid a dividend of $0.1750 per share. The ex-dividend date of this dividend is Wednesday, October 7th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.1%. GAP’s dividend payout ratio is currently 20.90%.

Insider Buying and Selling

In other GAP news, Director William Sydney Fisher sold 66,344 shares of the stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $23.06, for a total value of $1,529,892.64. Following the sale, the director owned 16,336,854 shares in the company, valued at $376,727,853.24. This trade represents a 0.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 31.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in GAP. Global Retirement Partners LLC purchased a new stake in shares of GAP in the second quarter valued at approximately $29,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of GAP in the second quarter valued at about $50,000. Quantbot Technologies LP purchased a new stake in shares of GAP in the 2nd quarter worth approximately $73,000. Westpac Banking Corp bought a new position in shares of GAP during the second quarter valued at approximately $103,000. Finally, Nykredit A S bought a new position in shares of GAP during the second quarter valued at approximately $129,000. 58.81% of the stock is currently owned by institutional investors.

GAP Company Profile

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections. The Old Navy Global segment offers clothing and accessories for adults and children.