GAP (NYSE:GAP – Free Report) had its price objective lifted by BTIG Research from $26.00 to $27.00 in a research report sent to investors on Friday morning, MarketBeat reports. BTIG Research currently has a buy rating on the stock.
Other equities analysts have also recently issued research reports about the company. Barclays increased their target price on GAP from $20.00 to $23.00 and gave the company an “equal weight” rating in a report on Friday. Wells Fargo & Company boosted their price target on GAP from $22.00 to $23.00 and gave the stock a “cautious” rating in a research report on Friday. Jefferies Financial Group downgraded GAP from a “buy” rating to a “hold” rating and reduced their price objective for the company from $29.00 to $23.00 in a research note on Wednesday, August 12th. JPMorgan Chase & Co. restated a “neutral” rating and issued a $27.00 price objective (down from $35.00) on shares of GAP in a report on Friday, May 29th. Finally, Evercore set a $20.00 target price on shares of GAP and gave the stock an “in-line” rating in a research note on Friday, May 29th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, GAP presently has a consensus rating of “Hold” and a consensus target price of $27.21.
GAP Price Performance
GAP (NYSE:GAP – Get Free Report) last issued its quarterly earnings results on Thursday, August 27th. The company reported $0.52 earnings per share for the quarter, beating analysts’ consensus estimates of $0.48 by $0.04. GAP had a net margin of 8.14% and a return on equity of 19.72%. The firm had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.69 billion. During the same period last year, the company posted $0.57 EPS. GAP’s quarterly revenue was down 2.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. Equities analysts forecast that GAP will post 2.38 earnings per share for the current fiscal year.
GAP Dividend Announcement
The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be given a $0.175 dividend. The ex-dividend date is Wednesday, October 7th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.0%. GAP’s dividend payout ratio is 20.90%.
Hedge Funds Weigh In On GAP
A number of institutional investors have recently added to or reduced their stakes in the stock. Amundi purchased a new position in GAP in the first quarter worth approximately $259,000. EverSource Wealth Advisors LLC raised its position in GAP by 177.0% in 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 during the period. Jump Financial LLC purchased a new stake in GAP in the second quarter valued at $612,000. California State Teachers Retirement System lifted its stake in shares of GAP by 0.8% in the 2nd 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 during the last quarter. Finally, Ameriprise Financial Inc. lifted its stake in shares of GAP by 42.7% in the 2nd 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 during the last quarter. Hedge funds and other institutional investors own 58.81% of the company’s stock.
Key Headlines Impacting GAP
Here are the key news stories impacting GAP this week:
- Positive Sentiment: Quarterly earnings beat expectations: Adjusted EPS was $0.52, exceeding the $0.48 consensus estimate. Gross margin expanded 20 basis points to 41.4%, helping Gap outperform operating-profit expectations despite weaker sales. Gap names Michael Francis Old Navy CEO as quarterly profit beats estimates
- Positive Sentiment: Profit outlook raised: The company now expects fiscal 2026 EPS of $2.35 to $2.45, above the roughly $2.33 analyst consensus. Management cited continued momentum at the Gap brand, margin discipline and strength at Banana Republic. Gap lifts annual profit forecast on strength of namesake brand
- Positive Sentiment: Old Navy leadership reset: Michael Francis, a retail veteran with experience at Walmart and Target, will become Old Navy’s president and CEO on November 2, replacing Haio Barbeito. Investors appear hopeful that Francis can improve the company’s largest brand. Gap shares jump after Old Navy brings in new CEO to revive brand
- Positive Sentiment: Analyst support increased: TD Cowen and BTIG raised their price targets to $27 and assigned “buy” ratings. Bank of America also raised its target to $27, while Morgan Stanley lifted its target to $23 but retained an “equal weight” rating.
- Neutral Sentiment: Sales remained soft: Second-quarter revenue fell 2% year over year to $3.65 billion, below the $3.69 billion consensus, while comparable sales declined 1%. Full-year revenue guidance of about $15.6 billion is slightly below analyst expectations. Gap Inc. Reports Second Quarter Fiscal 2026 Results
- Negative Sentiment: Brand performance was uneven: Old Navy reported sluggish comparable sales, and Athleta continued to face pressure. The need for a leadership change underscores execution risks even as Gap and Banana Republic show stronger momentum.
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.
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