Analysts at Robert W. Baird have raised their price target for GAP (NYSE:GAP) from $26.00 to $27.00, as detailed in a research report published on November 20, 2023. This adjustment suggests a potential upside of approximately 17.06% from the stock’s previous closing price. The firm currently maintains a “neutral” rating on the retailer’s stock, indicating a cautious outlook amid a mixed assessment from other financial institutions.
In recent evaluations, Wells Fargo & Company set a lower price target of $24.00 on GAP’s shares. On the other hand, Barclays downgraded its rating from “overweight” to “equal weight,” reducing its price objective from $24.00 to $19.00. Despite these downward revisions, Weiss Ratings reiterated a “buy (B-)” rating, while Evercore ISI reaffirmed an “outperform” rating. BTIG Research also began coverage of GAP, establishing a $30.00 target price with a “buy” rating. Currently, nine analysts have rated the stock as a buy, while another nine have assigned a hold rating, leading to a consensus rating of “Moderate Buy” and an average price target of $27.19, according to MarketBeat.
Recent Earnings Performance
GAP reported its latest quarterly earnings on November 20, 2023, revealing earnings per share (EPS) of $0.62. This figure surpassed the consensus estimate of $0.58 by $0.04. The company’s return on equity stood at 27.04%, with a net margin of 5.86%. GAP’s revenues for the quarter reached $3.94 billion, exceeding analysts’ expectations of $3.90 billion. This performance marked a 3.0% increase in revenue compared to the same quarter last year. Looking ahead, GAP has set its guidance for fiscal year 2025 at an EPS of $2.02.
Insider Trading Activity
In other news regarding GAP, significant insider trading has been reported. Director William Sydney Fisher sold 243,064 shares on September 4, 2023, at an average price of $23.82, totaling approximately $5,789,784.48. Following this transaction, Fisher retained 3,453,453 shares, valued at about $82,261,250.46, reflecting a 6.58% decrease in his holdings.
Similarly, Director Robert J. Fisher disposed of 500,000 shares on September 24, 2023, selling them at an average price of $22.90 for a total of $11,450,000.00. After this sale, he owned 2,829,502 shares, worth approximately $64,795,595.80, which constituted a 15.02% decrease in his position. Over the last three months, insiders have collectively sold 943,064 shares, totaling around $22,011,784.
Institutional Investor Activity
Institutional trading has also seen notable changes, with several large investors recently acquiring shares in GAP. Root Financial Partners LLC obtained a new position in the third quarter valued at $27,000, while Cornerstone Planning Group LLC purchased a stake worth about $35,000. Other new investments included Brooklyn Investment Group and Covestor Ltd, valued at approximately $80,000 and $82,000, respectively. Hedge funds and institutional investors currently hold 58.81% of GAP’s shares, indicating strong institutional interest in the company.
About GAP
Gap, Inc. operates as a global retailer specializing in apparel, accessories, and personal care products for men, women, and children. The company is segmented into multiple divisions, including Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment features a wide range of products, including apparel and accessories for adults and children under the Gap brand, as well as collections like GapKids, BabyGap, GapMaternity, GapBody, and GapFit.
In summary, the recent adjustments in price targets and the performance of GAP highlight a complex landscape for the retail company amid shifting market conditions. As analysts continue to assess the company’s trajectory, investor sentiment remains a crucial factor in determining GAP’s future performance.
