BMO Capital Markets upgraded shares of GAP (NYSE:GAP – Free Report) to a hold rating in a research report report published on Tuesday morning,Zacks reports.
Several other research firms have also commented on GAP. Morgan Stanley lifted their price objective on shares of GAP from $21.00 to $23.00 and gave the stock an “equal weight” rating in a research note on Friday, August 28th. Barclays increased their target price on shares of GAP from $20.00 to $23.00 and gave the company an “equal weight” rating in a research note on Friday, August 28th. JPMorgan Chase & Co. restated a “neutral” rating and issued a $27.00 target price (down from $35.00) on shares of GAP in a report on Friday, May 29th. Jefferies Financial Group cut shares of GAP from a “buy” rating to a “hold” rating and dropped their price target for the stock from $29.00 to $23.00 in a research note on Wednesday, August 12th. Finally, Wells Fargo & Company upped their price target on shares of GAP from $22.00 to $23.00 and gave the company a “cautious” rating in a report on Friday, August 28th. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, GAP presently has an average rating of “Hold” and an average target price of $27.07.
GAP Stock Down 2.0%
GAP (NYSE:GAP – Get Free Report) last issued its quarterly earnings data on Thursday, August 27th. The company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.04. GAP had a return on equity of 19.72% and a net margin of 8.14%.The company had revenue of $3.65 billion for the quarter, compared to analysts’ expectations of $3.69 billion. During the same period in the previous year, the firm posted $0.57 earnings per share. The firm’s revenue for the quarter was down 2.0% on a year-over-year basis. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. As a group, equities research analysts predict that GAP will post 2.41 earnings per share for the current year.
GAP Dividend Announcement
The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be paid a dividend of $0.175 per share. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Wednesday, October 7th. GAP’s payout ratio is currently 20.90%.
Institutional Inflows and Outflows
Several institutional investors have recently added to or reduced their stakes in the stock. Amundi bought a new stake in GAP during the 1st quarter valued at about $259,000. EverSource Wealth Advisors LLC grew its stake in GAP by 177.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock worth $153,000 after acquiring an additional 4,483 shares in the last quarter. Jump Financial LLC purchased a new position in shares of GAP during the second quarter worth approximately $612,000. California State Teachers Retirement System increased its position in shares of GAP by 0.8% during the second quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock worth $4,940,000 after acquiring an additional 1,703 shares during the period. Finally, Ameriprise Financial Inc. raised its stake 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 valued at $96,134,000 after acquiring an additional 1,318,322 shares in the last quarter. Hedge funds and other institutional investors own 58.81% of the company’s stock.
GAP News Roundup
Here are the key news stories impacting GAP this week:
- Positive Sentiment: BMO Capital Markets upgraded GAP to “hold,” a less bearish stance that may reduce selling pressure and indicates the firm no longer expects meaningful underperformance. Zacks analyst action
- Positive Sentiment: Zacks Research raised its FY2027 EPS forecast to $2.41 from $2.31 and its FY2028 forecast to $2.62 from $2.55. It also increased Q4 2027 EPS to $0.73 from $0.63, Q3 2028 EPS to $0.87 from $0.83, and Q4 2028 EPS to $0.66 from $0.62. These revisions suggest improved longer-term earnings expectations.
- Positive Sentiment: GAP has hired a Paramount executive to help expand its brands beyond traditional apparel, signaling a strategy to create new growth channels and broaden its consumer reach. Gap taps a new executive to find its next act beyond fashion
- Neutral Sentiment: The current full-year EPS consensus remains $2.41, in line with the company’s FY2026 guidance range midpoint and unchanged by the latest estimate activity. This provides a stable baseline but no new near-term catalyst.
- Negative Sentiment: Zacks reduced estimates for Q1 2029 EPS to $0.53 from $0.56, Q2 2029 EPS to $0.68 from $0.71, Q2 2028 EPS to $0.61 from $0.62, and FY2029 EPS to $2.81 from $2.82. The cuts indicate some longer-term uncertainty despite the upgrades elsewhere.
- Negative Sentiment: Broader specialty-retail sentiment remains cautious: Victoria’s Secret raised guidance after beating earnings estimates, but its shares weakened as comparable-sales growth slowed and valuation concerns persisted. That backdrop may weigh on apparel-retail stocks, including GAP. Victoria’s Secret’s Comeback Is Real—The Stock’s Problem Is Different
GAP Company Profile
Gap Inc is an American specialty apparel retailer founded in 1969 by Donald and Doris Fisher in San Francisco, California. The company operates a portfolio of consumer brands focused on clothing, accessories and personal-care products for women, men and children.
Its principal brands include Old Navy, Gap, Banana Republic and Athleta. Products are sold through company-operated stores, franchise locations and digital channels, with offerings spanning casual apparel, denim, activewear, accessories and lifestyle products.
Gap Inc serves customers in North America and selected international markets through its retail and e-commerce operations.
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