The Gap, Inc. (NYSE:GAP) Given Consensus Rating of “Moderate Buy” by Analysts

Shares of The Gap, Inc. (NYSE:GAP) have been given an average rating of “Moderate Buy” by the eighteen ratings firms that are presently covering the firm, MarketBeat reports. Eleven research analysts have rated the stock with a hold rating, five have given a buy rating and two have issued a strong buy rating on the company. The average 1-year target price among brokers that have covered the stock in the last year is $26.7143.

A number of analysts recently issued reports on the company. Weiss Ratings lowered GAP from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, July 28th. Barclays reaffirmed an “equal weight” rating and set a $20.00 target price (down from $26.00) on shares of GAP in a report on Tuesday. BTIG Research set a $26.00 price target on GAP in a research report on Thursday, July 30th. TD Cowen lowered their price target on shares of GAP from $32.00 to $26.00 and set a “buy” rating on the stock in a report on Monday, May 18th. Finally, Jefferies Financial Group lowered shares of GAP from a “buy” rating to a “hold” rating and cut their price objective for the company from $29.00 to $23.00 in a research report on Wednesday.

Trending Headlines about GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap’s board authorized a quarterly dividend of $0.175 per share, payable October 28 to shareholders of record October 7. The payout equates to $0.70 annually and provides income support for investors. Gap Inc. Announces Third Quarter Dividend
• Positive Sentiment: Recent Gap marketing campaigns, including collaborations with Hailey Bieber and musician Malcolm Todd, are generating social-media attention and reinforcing the retailer’s ’90s-inspired brand positioning. Gap Beauty is also reviving heritage fragrances, potentially supporting customer engagement and new-category sales. Gap and Hailey Bieber social media campaign Gap Beauty fragrance relaunch
• Neutral Sentiment: Coverage of competitor Abercrombie & Fitch’s record fiscal-year sales, alongside softer comparable sales and margin concerns, highlights the broader apparel industry’s uneven recovery. The results offer limited direct read-through for GAP but underscore the importance of sustained demand and profitability improvements. Abercrombie’s Comeback Is a Work in Progress
• Negative Sentiment: Jefferies downgraded GAP to “Hold” from “Buy” and reduced its price target to $23, citing softening trends at Old Navy. Barclays separately cut its rating to “Equal Weight” from “Overweight” and lowered its target to $20 from $26. The downgrades raise concerns that weakness at GAP’s largest brand could slow the turnaround and limit earnings upside. Gap analyst downgrade on Old Navy concerns

GAP Price Performance

Shares of NYSE GAP opened at $20.42 on Friday. GAP has a twelve month low of $18.11 and a twelve month high of $29.36. The stock’s 50 day moving average price is $20.26 and its 200-day moving average price is $23.41. The company has a market capitalization of $7.35 billion, a PE ratio of 8.04, a PEG ratio of 1.19 and a beta of 2.05. The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41.

GAP (NYSE:GAP) last issued its quarterly earnings results on Thursday, May 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). GAP had a return on equity of 21.13% and a net margin of 6.25%.The company had revenue of $3.50 billion for the quarter, compared to analysts’ expectations of $3.52 billion. During the same quarter in the previous year, the business earned $0.51 EPS. The company’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. On average, equities analysts anticipate that GAP will post 2.34 EPS for the current year.

GAP Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be issued a dividend of $0.175 per share. The ex-dividend date of this dividend is Wednesday, October 7th. This represents a $0.70 annualized dividend and a dividend yield of 3.4%. GAP’s payout ratio is presently 27.56%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in GAP. Cullen Frost Bankers Inc. purchased a new position in shares of GAP during the fourth quarter worth approximately $26,000. Plato Investment Management Ltd purchased a new stake in shares of GAP in the 4th quarter valued at $28,000. Global Retirement Partners LLC purchased a new stake in shares of GAP in the 2nd quarter valued at $29,000. V Square Quantitative Management LLC bought a new position in shares of GAP during the 4th quarter valued at $31,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of GAP during the 2nd quarter valued at $50,000. Institutional investors own 58.81% of the company’s stock.

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.