GAP (NYSE:GAP) Lowered to Hold Rating by Evercore

Posted by George Bondi on May 30th, 2026

GAP (NYSE:GAP – Get Free Report) was downgraded by stock analysts at Evercore from a “strong-buy” rating to a “hold” rating in a research report issued on Friday,Zacks.com reports.

Several other equities research analysts have also recently issued reports on the stock. Wells Fargo & Company lowered their target price on shares of GAP from $30.00 to $26.00 and set an “overweight” rating on the stock in a research note on Friday. TD Cowen lowered their target price on shares of GAP from $32.00 to $26.00 and set a “buy” rating on the stock in a research note on Monday, May 18th. Weiss Ratings raised shares of GAP from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, March 25th. Bank of America lowered their target price on shares of GAP from $29.00 to $26.00 and set a “neutral” rating on the stock in a research note on Friday. Finally, Jefferies Financial Group lowered their target price on shares of GAP from $32.00 to $29.00 and set a “buy” rating on the stock in a research note on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $28.71.

Get Our Latest Report on GAP

GAP Trading Down 15.4%

Shares of GAP opened at $21.14 on Friday. GAP has a 52-week low of $18.68 and a 52-week high of $29.36. The company has a quick ratio of 1.08, a current ratio of 1.75 and a debt-to-equity ratio of 0.39. The firm’s fifty day moving average is $24.20 and its two-hundred day moving average is $25.66. The stock has a market cap of $7.72 billion, a PE ratio of 8.32, a price-to-earnings-growth ratio of 1.45 and a beta of 2.11.

GAP (NYSE:GAP – Get Free Report) last announced its 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 21.17% and a net margin of 6.25%.The business had revenue of $3.50 billion for the quarter, compared to analyst estimates of $3.52 billion. During the same period last year, the firm earned $0.51 EPS. The company’s revenue for the quarter was up 1.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. Research analysts forecast that GAP will post 2.29 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Mark Breitbard sold 119,155 shares of the business’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $23.80, for a total transaction of $2,835,889.00. Following the transaction, the chief executive officer owned 135,884 shares of the company’s stock, valued at approximately $3,234,039.20. The trade was a 46.72% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Katrina O’connell sold 153,413 shares of the business’s stock in a transaction dated 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 directly owned 11,503 shares in the company, valued at approximately $274,346.55. The trade was a 93.02% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 923,098 shares of company stock worth $22,648,158. Insiders own 31.00% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Cullen Frost Bankers Inc. acquired a new position in shares of GAP during the 4th quarter valued at about $26,000. Plato Investment Management Ltd acquired a new position in shares of GAP during the 4th quarter valued at about $28,000. V Square Quantitative Management LLC purchased a new stake in GAP in the 4th quarter valued at about $31,000. Cornerstone Planning Group LLC purchased a new stake in GAP in the 3rd quarter valued at about $35,000. Finally, EverSource Wealth Advisors LLC raised its holdings in GAP by 177.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock valued at $153,000 after buying an additional 4,483 shares during the period. Institutional investors and hedge funds own 58.81% of the company’s stock.

GAP News Summary

Here are the key news stories impacting GAP this week:

Negative Sentiment: The Gap reported Q1 EPS of $0.38, missing estimates, and revenue of $3.50 billion, also slightly below expectations. The market is reacting to the earnings miss and lower revenue trend. Article Title
Negative Sentiment: Management lowered fiscal 2026 revenue guidance to 1% to 2% growth from 2% to 3%, citing slower Old Navy growth and weaker-than-expected spring/summer demand. Article Title
Negative Sentiment: Several headlines highlighted that shares fell sharply after the company’s cautious Q2 outlook and sales guidance reset, with analysts and media focusing on the weak consumer backdrop and pressure on nonessential spending. Article Title
Neutral Sentiment: Gap still posted 2% comparable sales growth for a ninth straight quarter, and the flagship Gap brand remained relatively strong, which partially offsets the weaker outlook. Article Title
Neutral Sentiment: Analysts broadly kept positive or neutral ratings but lowered price targets, signaling that Wall Street sees upside from current levels, while acknowledging slower near-term growth. Article Title
Negative Sentiment: A shareholder investigation notice added another overhang, reflecting investor concern that the quarter’s results may have involved disclosure or securities-law issues. Article Title

About GAP

(Get Free Report)

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.