GAP’s (GAP) Buy Rating Reaffirmed at BTIG Research

GAP (NYSE:GAP)‘s stock had its “buy” rating reiterated by equities researchers at BTIG Research in a research note issued on Friday,Benzinga reports. They presently have a $28.00 price target on the stock. BTIG Research’s price target suggests a potential upside of 12.24% from the stock’s current price.

Other analysts have also issued reports about the stock. The Goldman Sachs Group reduced their price target on shares of GAP from $32.00 to $28.00 and set a “buy” rating for the company in a research note on Friday. Zacks Research lowered shares of GAP from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 2nd. TD Cowen reduced their price target on shares of GAP from $32.00 to $26.00 and set a “buy” rating for the company in a research note on Monday, May 18th. Evercore set a $20.00 price target on shares of GAP in a research note on Friday. Finally, Wall Street Zen downgraded shares of GAP from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $29.21.

GAP Stock Performance

Shares of GAP stock opened at $24.95 on Friday. The company has a 50 day moving average price of $24.26 and a 200-day moving average price of $25.69. GAP has a 52 week low of $18.68 and a 52 week high of $29.36. The firm has a market capitalization of $9.11 billion, a PE ratio of 11.60, a P/E/G ratio of 1.39 and a beta of 2.11. The company has a quick ratio of 1.08, a current ratio of 1.75 and a debt-to-equity ratio of 0.39.

GAP (NYSE:GAP) last announced its quarterly earnings results on Thursday, May 28th. The company reported $0.38 EPS 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 company had revenue of $3.50 billion during the quarter, compared to the consensus estimate of $3.52 billion. During the same quarter in the prior year, the firm earned $0.51 earnings per share. The business’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. As a group, equities research analysts expect that GAP will post 2.29 earnings per share for the current year.

Insider Buying and Selling at GAP

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 shares were sold at an average price of $23.85, for a total transaction of $3,658,900.05. Following the transaction, the chief financial officer owned 11,503 shares of the company’s stock, valued at $274,346.55. The trade was a 93.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder John J. Fisher sold 300,000 shares of GAP stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $25.40, for a total transaction of $7,620,000.00. Following the transaction, the insider directly owned 446,781 shares in the company, valued at $11,348,237.40. This represents a 40.17% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 923,098 shares of company stock valued at $22,648,158. 31.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On GAP

Several large investors have recently added to or reduced their stakes in GAP. Amundi purchased a new position in GAP during the first quarter valued at approximately $259,000. EverSource Wealth Advisors LLC lifted its holdings in GAP by 177.0% during the second quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock valued at $153,000 after purchasing an additional 4,483 shares in the last quarter. Jump Financial LLC purchased a new position in GAP during the second quarter valued at approximately $612,000. California State Teachers Retirement System lifted its holdings in GAP by 0.8% during the second quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock valued at $4,940,000 after purchasing an additional 1,703 shares in the last quarter. Finally, Ameriprise Financial Inc. lifted its holdings in GAP by 42.7% during the second quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company’s stock valued at $96,134,000 after purchasing an additional 1,318,322 shares in the last quarter. Hedge funds and other institutional investors own 58.81% of the company’s stock.

Key Stories Impacting GAP

Here are the key news stories impacting GAP this week:

• Negative Sentiment: Gap cut its full-year sales forecast, saying slower growth at Old Navy and weaker discretionary spending are hurting demand. The company now expects revenue growth of 1% to 2%, down from 2% to 3%, which raised concerns about consumer softness and near-term sales momentum. Article Title
• Negative Sentiment: The company missed first-quarter revenue expectations and posted EPS of $0.38 versus the $0.39 estimate, reinforcing worries that results are not keeping pace with analyst forecasts. Article Title
• Negative Sentiment: Management said Old Navy’s spring and summer assortment did not resonate with shoppers, a key reason the company lowered its outlook and why the stock dropped sharply in after-hours and premarket trading. Article Title
• Neutral Sentiment: Gap still reported some positives, including 1% revenue growth, 2% comparable-sales growth, and a raised full-year EPS outlook, but those upside points were outweighed by the cautious sales guidance. 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.