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

The Gap, Inc. (NYSE:GAP) has received an average rating of “Hold” from the twenty-one ratings firms that are currently covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating, five have given a buy rating and two have issued a strong buy rating on the company. The average 12-month target price among brokerages that have covered the stock in the last year is $27.07.

A number of equities analysts have recently commented on GAP shares. TD Cowen lifted their target price on shares of GAP from $23.00 to $27.00 and gave the company a “buy” rating in a report on Friday, August 28th. Weiss Ratings upgraded shares of GAP from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Barclays increased their price target on shares of GAP from $20.00 to $23.00 and gave the stock an “equal weight” rating in a research note on Friday, August 28th. Jefferies Financial Group lowered shares of GAP from a “buy” rating to a “hold” rating and dropped their price objective for the company from $29.00 to $23.00 in a research note on Wednesday, August 12th. Finally, The Goldman Sachs Group lifted their price objective on shares of GAP from $25.00 to $27.00 and gave the company a “buy” rating in a research note on Monday, August 31st.

Insider Activity at GAP

In other GAP news, Director William Fisher sold 500,000 shares of the business’s stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $23.89, for a total transaction of $11,945,000.00. Following the sale, the director directly owned 15,903,198 shares in the company, valued at approximately $379,927,400.22. The trade was a 3.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Julie Gruber sold 27,538 shares of the business’s stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $23.56, for a total value of $648,795.28. Following the sale, the insider owned 30,876 shares in the company, valued at approximately $727,438.56. The trade was a 47.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,027,538 shares of company stock valued at $24,249,556 over the last ninety days. 31.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in GAP in the 2nd quarter valued at about $428,824,000. Bank of America Corp DE purchased a new position in GAP during the 2nd quarter valued at about $30,345,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in GAP by 5.1% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 720,170 shares of the company’s stock valued at $13,453,000 after acquiring an additional 35,103 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. purchased a new position in GAP during the 2nd quarter valued at about $12,794,000. Finally, Empowered Funds LLC acquired a new position in GAP during the second quarter worth about $12,180,000. Institutional investors and hedge funds own 58.81% of the company’s stock.

GAP Stock Down 0.0%

GAP stock opened at $22.32 on Friday. GAP has a fifty-two week low of $18.11 and a fifty-two week high of $29.36. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.11 and a current ratio of 1.82. The company has a market capitalization of $7.84 billion, a P/E ratio of 6.66, a PEG ratio of 0.93 and a beta of 2.05. The stock has a 50-day simple moving average of $21.96 and a 200-day simple moving average of $21.87.

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

GAP Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 7th will be paid a $0.1750 dividend. This represents a $0.70 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Wednesday, October 7th. GAP’s dividend payout ratio (DPR) is presently 20.90%.

Key Stories Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Victoria Beckham collaboration is generating strong consumer buzz. Multiple reviews describe the second Gap collection as stylish, affordable and likely to sell out quickly. The launch could increase traffic, brand visibility and full-price demand, although media enthusiasm has not yet been translated into reported sales results. Victoria Beckham autumn collection review New Gap x Victoria Beckham collaboration review
• Positive Sentiment: Analysts and value investors continue to highlight GAP. Zacks included Gap among value-stock ideas amid market volatility, while another report cited an average analyst price target of $27.07—above the stock’s recent trading level near $22. The investment case is supported by a low reported P/E ratio and expectations for approximately $2.41 in current-year EPS. Zacks value stock picks Gap average target price
• Positive Sentiment: Operational and brand recognition provide additional support. Gap is using artificial intelligence to assist seasonal hiring, potentially improving recruiting efficiency ahead of the holiday period. The company is also being recognized with an Amazon Fashion Innovation Award, reinforcing its positioning in digital retail and fashion innovation. Gap AI seasonal hiring Amazon Fashion Innovation Award
• Neutral Sentiment: Key risk remains execution. The latest reported quarter showed revenue down 2% year over year despite an earnings beat, leaving investors focused on whether collaborations and holiday hiring improvements can produce sustained sales growth.

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.