GAP Inc. (NYSE:GAP) has seen its target price revised upwards from $26.00 to $27.00 by analysts at Robert W. Baird, according to a report released on Friday. This adjustment suggests a potential upside of approximately 17.06% from the stock’s previous closing price. Currently, the brokerage maintains a “neutral” rating on GAP’s shares.
Other financial institutions have also provided their insights on GAP. Wells Fargo & Company established a price target of $24.00 on Friday. Meanwhile, Weiss Ratings reaffirmed a “buy (b-)” rating on Tuesday. In contrast, Barclays downgraded GAP from an “overweight” rating to “equal weight,” lowering their price objective from $24.00 to $19.00 on August 22. Additionally, Evercore ISI reiterated an “outperform” rating on the stock, while BTIG Research initiated coverage on October 14, assigning a “buy” rating and a target price of $30.00.
A total of nine equity research analysts have assigned a Buy rating to GAP, with an equal number recommending a Hold. According to MarketBeat, the consensus rating for GAP is classified as a “Moderate Buy,” with an average price target of $27.19.
Recent Earnings Performance
GAP’s last earnings report, announced on November 20, revealed an earnings per share (EPS) of $0.62, exceeding the consensus estimate of $0.58 by $0.04. The company reported a return on equity of 27.04% and a net profit margin of 5.86%. Revenue for the quarter reached $3.94 billion, surpassing analysts’ expectations of $3.90 billion. This performance reflects a 3.0% year-over-year increase, although it is a decline from the $0.72 EPS reported during the same quarter last year. For FY 2025, the company has set its EPS guidance at $2.02.
Insider Activity and Institutional Trading
In recent insider trading activities, William Sydney Fisher, a director at GAP, sold 243,064 shares on September 4 at an average price of $23.82, totaling approximately $5.79 million. Following this transaction, Fisher retained 3,453,453 shares, valued at around $82.26 million, marking a 6.58% reduction in his holdings.
Similarly, on September 24, another director, Robert J. Fisher, sold 500,000 shares at an average price of $22.90, amounting to $11.45 million. Post-sale, his direct ownership declined to 2,829,502 shares, with a total value of about $64.80 million. Over the last three months, insiders have sold 943,064 shares worth approximately $22.01 million, indicating that corporate insiders currently hold 30.56% of the company’s stock.
Recent institutional trading also highlights considerable interest in GAP. In the third quarter, Root Financial Partners LLC entered the market with a new position valued at $27,000, while Cornerstone Planning Group LLC invested around $35,000. Other notable acquisitions include $80,000 from Brooklyn Investment Group and $82,000 from Covestor Ltd. Overall, institutional investors now own 58.81% of GAP’s shares.
About GAP Inc.
Gap Inc. operates as a global apparel retail company, providing clothing, accessories, and personal care products for men, women, and children. The company operates through several segments, including Gap Global, Old Navy Global, Banana Republic Global, Athleta, and others. The Gap Global segment features a range of apparel and accessories under the Gap brand, which includes collections such as GapKids, BabyGap, GapMaternity, GapBody, and GapFit.
