The Gap, Inc. (NYSE:GAP) Receives $25.73 Average PT from Brokerages

Shares of The Gap, Inc. (NYSE:GAP) have earned a consensus recommendation of “Hold” from the fifteen analysts that are presently covering the firm, MarketBeat Ratings reports. Nine equities research analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $25.7333.

Several analysts recently issued reports on the stock. Barclays lowered shares of GAP from an “overweight” rating to an “equal weight” rating and reduced their price objective for the company from $24.00 to $19.00 in a report on Friday, August 22nd. Jefferies Financial Group reiterated a “hold” rating and set a $29.00 price target (up from $26.00) on shares of GAP in a research note on Wednesday, May 21st. Wall Street Zen lowered shares of GAP from a “buy” rating to a “hold” rating in a research note on Sunday, August 3rd. Morgan Stanley cut their price target on shares of GAP from $30.00 to $27.00 and set an “overweight” rating on the stock in a research note on Tuesday, May 6th. Finally, UBS Group cut their price target on shares of GAP from $27.00 to $23.00 and set a “neutral” rating on the stock in a research note on Friday, August 22nd.

Institutional Investors Weigh In On GAP

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. State of Tennessee Department of Treasury raised its stake in shares of GAP by 10.5% during the second quarter. State of Tennessee Department of Treasury now owns 99,990 shares of the company’s stock worth $2,181,000 after purchasing an additional 9,542 shares during the last quarter. Captrust Financial Advisors raised its stake in shares of GAP by 85.2% during the second quarter. Captrust Financial Advisors now owns 37,119 shares of the company’s stock worth $810,000 after purchasing an additional 17,079 shares during the last quarter. Lazard Asset Management LLC raised its stake in shares of GAP by 146.4% during the second quarter. Lazard Asset Management LLC now owns 123,726 shares of the company’s stock worth $2,697,000 after purchasing an additional 73,516 shares during the last quarter. 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 worth $96,134,000 after purchasing an additional 1,318,322 shares during the last quarter. Finally, California State Teachers Retirement System raised its stake 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 purchasing an additional 1,703 shares during the last quarter. Hedge funds and other institutional investors own 58.81% of the company’s stock.

GAP Price Performance

GAP stock opened at $21.72 on Friday. The company’s fifty day moving average price is $21.08 and its 200 day moving average price is $21.73. GAP has a 1 year low of $16.99 and a 1 year high of $29.29. The stock has a market capitalization of $8.18 billion, a P/E ratio of 9.40, a P/E/G ratio of 2.47 and a beta of 2.15. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.98 and a current ratio of 1.71.

GAP (NYSE:GAP) last announced its earnings results on Thursday, August 28th. The company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.55 by $0.02. GAP had a net margin of 5.80% and a return on equity of 27.86%. The company had revenue of $3.73 billion for the quarter, compared to analysts’ expectations of $3.73 billion. During the same quarter in the previous year, the company posted $0.54 EPS. The firm’s quarterly revenue was up .1% on a year-over-year basis. GAP has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, equities research analysts anticipate that GAP will post 2.02 earnings per share for the current fiscal year.

GAP Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 29th. Investors of record on Wednesday, October 8th will be issued a $0.165 dividend. This represents a $0.66 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend is Wednesday, October 8th. GAP’s dividend payout ratio is 28.57%.

About GAP

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections.