GAP (NYSE:GAP) Trading Down 6.5% – Here’s Why

The Gap, Inc. (NYSE:GAP) dropped 6.5% during trading on Monday . The company traded as low as $18.97 and last traded at $18.8980. 2,832,698 shares traded hands during trading, a decline of 64% from the average session volume of 7,919,623 shares. The stock had previously closed at $20.21.

Analyst Ratings Changes

Several equities research analysts recently issued reports on GAP shares. TD Cowen decreased their target price on shares of GAP from $32.00 to $26.00 and set a “buy” rating on the stock in a research report on Monday, May 18th. Telsey Advisory Group increased their price target on shares of GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a research note on Monday, March 2nd. Barclays decreased their price target on shares of GAP from $33.00 to $26.00 and set an “overweight” rating on the stock in a report on Friday, May 29th. BTIG Research reissued a “buy” rating and set a $28.00 price objective on shares of GAP in a research note on Friday, May 29th. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of GAP in a report on Thursday, June 18th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $28.71.

GAP Stock Performance

The stock’s 50-day moving average is $22.69 and its 200-day moving average is $25.07. The company has a current ratio of 1.81, a quick ratio of 1.08 and a debt-to-equity ratio of 0.41. The stock has a market cap of $6.76 billion, a price-to-earnings ratio of 7.38, a P/E/G ratio of 1.19 and a beta of 2.03.

GAP (NYSE:GAP) last released its quarterly earnings data 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). The business had revenue of $3.50 billion during the quarter, compared to analyst estimates of $3.52 billion. GAP had a return on equity of 21.13% and a net margin of 6.25%.GAP’s revenue was up 1.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.51 EPS. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, analysts expect that The Gap, Inc. will post 2.34 EPS for the current year.

GAP Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 29th. Shareholders of record on Wednesday, July 8th will be given a $0.175 dividend. The ex-dividend date of this dividend is Wednesday, July 8th. This represents a $0.70 annualized dividend and a yield of 3.7%. GAP’s dividend payout ratio (DPR) is 27.56%.

Insider Buying and Selling

In other news, insider Eric Kayen Chan sold 13,377 shares of the company’s stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $26.18, for a total value of $350,209.86. Following the completion of the sale, the insider owned 21,967 shares of the company’s stock, valued at $575,096.06. This represents a 37.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder John J. Fisher sold 300,000 shares of the stock in a transaction dated Wednesday, April 8th. The shares were 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 SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 343,679 shares of company stock worth $8,741,864. Company insiders own 31.00% of the company’s stock.

Institutional Trading of GAP

Several large investors have recently bought and sold shares of the company. Ameriprise Financial Inc. lifted its position in shares of GAP by 42.7% during the second quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company’s stock worth $96,134,000 after purchasing an additional 1,318,322 shares in the last quarter. Miller Howard Investments Inc. NY grew its holdings in GAP by 112.2% during the 1st quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company’s stock valued at $41,237,000 after purchasing an additional 900,855 shares in the last quarter. Jump Financial LLC increased its stake in GAP by 2,197.8% during the 3rd quarter. Jump Financial LLC now owns 645,150 shares of the company’s stock worth $13,800,000 after buying an additional 617,073 shares during the period. Bank of New York Mellon Corp lifted its holdings in GAP by 13.0% in the 4th quarter. Bank of New York Mellon Corp now owns 3,195,934 shares of the company’s stock worth $81,816,000 after buying an additional 368,191 shares in the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S acquired a new position in GAP in the 4th quarter worth $4,801,000. Institutional investors and hedge funds own 58.81% of the company’s stock.

GAP Company Profile

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.