GAP Inc. (NYSE:GAP) saw its price target raised from $26.00 to $27.00 by analysts at Robert W. Baird, according to a research report released on Friday. The brokerage maintains a “neutral” rating on the stock, suggesting a potential upside of approximately 17.06% from GAP’s previous closing price. This adjustment reflects ongoing evaluations of the company’s market position amidst a fluctuating retail environment.
Several other financial institutions have also recently provided insights on GAP’s stock performance. On the same day, Wells Fargo & Company set a price target of $24.00 for the shares, while Barclays downgraded its rating from “overweight” to “equal weight,” lowering its price objective from $24.00 to $19.00. Conversely, Evercore ISI reaffirmed an “outperform” rating, indicating confidence in GAP’s potential. In a notable move, BTIG Research initiated coverage, placing a “buy” rating with a target price of $30.00.
Current consensus from nine equity research analysts includes a “Moderate Buy” rating, with an average price target of $27.19, according to MarketBeat. This indicates a balanced outlook on GAP’s future performance, with some analysts seeing more promise than others.
Recent Earnings and Financial Performance
GAP recently announced its earnings results for the quarter ending November 20, 2023. The company reported earnings per share (EPS) of $0.62, surpassing the consensus estimate of $0.58 by $0.04. The firm achieved a return on equity of 27.04% and a net margin of 5.86%. Revenue for the quarter reached $3.94 billion, exceeding analyst expectations of $3.90 billion, and marking a 3.0% increase compared to the same period last year.
GAP has set its fiscal year 2025 guidance with an expected EPS of $2.02, reflecting optimism about future profitability.
Insider Trading Activity
Recent insider transactions have drawn attention. Director William Sydney Fisher sold 243,064 shares on September 4, 2023, at an average price of $23.82, totaling approximately $5.79 million. Following this sale, he retained 3,453,453 shares valued at around $82.26 million, representing a 6.58% reduction in his position.
Another notable transaction involved Director Robert J. Fisher, who sold 500,000 shares on September 24, 2023, at an average price of $22.90, amounting to $11.45 million. Post-sale, he owned 2,829,502 shares valued at approximately $64.80 million, reflecting a 15.02% decline in his holdings. In total, insiders have sold 943,064 shares over the past three months, worth about $22.01 million. Currently, corporate insiders hold 30.56% of GAP’s stock.
Institutional Investor Activity
Institutional trading indicates a growing interest in GAP. In the third quarter, Root Financial Partners LLC acquired a new position valued at $27,000, while Cornerstone Planning Group LLC purchased shares valued at approximately $35,000. Other investments include Brooklyn Investment Group and Covestor Ltd, which acquired stakes worth about $80,000 and $82,000, respectively. Collectively, hedge funds and institutional investors now own 58.81% of the company’s stock.
GAP Inc. continues to navigate its position in the global apparel retail landscape, operating through brands including Gap, Old Navy, Banana Republic, and Athleta. As the retail sector evolves, analysts and investors will be closely monitoring the company’s performance and strategic decisions.
