GAP (NYSE:GAP) Shares Down 7.1% – Should You Sell?

Posted by Stanley Muller on May 11th, 2026

The Gap, Inc. (NYSE:GAP – Get Free Report)’s stock price traded down 7.1% during mid-day trading on Monday . The stock traded as low as $21.83 and last traded at $21.7040. 4,212,180 shares changed hands during trading, a decline of 44% from the average session volume of 7,575,877 shares. The stock had previously closed at $23.37.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. JPMorgan Chase & Co. boosted their price objective on shares of GAP from $33.00 to $35.00 and gave the stock an “overweight” rating in a research report on Friday, March 20th. Telsey Advisory Group lifted their target price on shares of GAP from $32.00 to $34.00 and gave the stock an “outperform” rating in a research report on Monday, March 2nd. Wall Street Zen downgraded shares of GAP from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. The Goldman Sachs Group increased their price target on shares of GAP from $29.00 to $32.00 and gave the company a “buy” rating in a research report on Friday, January 30th. Finally, Citigroup upped their target price on GAP from $25.00 to $27.00 and gave the company a “neutral” rating in a research note on Friday, March 6th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $30.62.

Get Our Latest Stock Report on GAP

GAP Price Performance

The company has a market capitalization of $7.93 billion, a price-to-earnings ratio of 10.09, a P/E/G ratio of 1.35 and a beta of 2.11. The company has a fifty day simple moving average of $25.14 and a two-hundred day simple moving average of $25.76. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.08 and a current ratio of 1.75.

GAP (NYSE:GAP – Get Free Report) last posted its quarterly earnings data on Thursday, March 5th. The company reported $0.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.46 by ($0.01). The business had revenue of $4.24 billion for the quarter, compared to analyst estimates of $4.24 billion. GAP had a return on equity of 22.98% and a net margin of 5.31%.GAP’s revenue for the quarter was up 2.1% compared to the same quarter last year. During the same quarter last year, the business earned $0.54 EPS. GAP has set its FY 2026 guidance at 2.200-2.350 EPS. As a group, research analysts anticipate that The Gap, Inc. will post 2.3 earnings per share for the current year.

GAP Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 29th. Shareholders of record on Wednesday, April 8th were issued a $0.175 dividend. This is a positive change from GAP’s previous quarterly dividend of $0.17. The ex-dividend date was Wednesday, April 8th. This represents a $0.70 annualized dividend and a yield of 3.2%. GAP’s dividend payout ratio (DPR) is presently 32.56%.

Insider Activity at GAP

In other news, major shareholder John J. Fisher sold 300,000 shares of the company’s stock in a transaction dated 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 completion of the transaction, the insider owned 446,781 shares of the company’s stock, valued at $11,348,237.40. This represents a 40.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Horacio Barbeito sold 113,684 shares of the stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $24.01, for a total transaction of $2,729,552.84. Following the transaction, the chief executive officer owned 115,024 shares in the company, valued at approximately $2,761,726.24. The trade was a 49.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 923,098 shares of company stock worth $22,648,158. Corporate insiders own 31.00% of the company’s stock.

Institutional Trading of GAP

Several institutional investors have recently made changes to their positions in GAP. Ameriprise Financial Inc. increased its holdings in shares of GAP by 4.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 4,588,800 shares of the company’s stock worth $98,154,000 after buying an additional 180,991 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of GAP by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 4,291,846 shares of the company’s stock worth $110,750,000 after purchasing an additional 14,141 shares during the period. LSV Asset Management raised its holdings in shares of GAP by 3.6% in the 4th quarter. LSV Asset Management now owns 3,462,702 shares of the company’s stock worth $88,645,000 after purchasing an additional 121,001 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of 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 valued at $81,816,000 after purchasing an additional 368,191 shares in the last quarter. Finally, Miller Howard Investments Inc. NY grew its holdings in shares of GAP by 112.2% during the 1st quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company’s stock worth $41,237,000 after purchasing an additional 900,855 shares during the period. 58.81% of the stock is owned by hedge funds and other institutional investors.

GAP Company Profile

(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.