Zacks Research Has Optimistic Outlook of GAP Q1 Earnings

The Gap, Inc. (NYSE:GAP) – Stock analysts at Zacks Research lifted their Q1 2026 EPS estimates for shares of GAP in a report issued on Thursday, March 13th. Zacks Research analyst R. Lohia now expects that the company will post earnings of $0.42 per share for the quarter, up from their prior estimate of $0.40. The consensus estimate for GAP’s current full-year earnings is $2.02 per share. Zacks Research also issued estimates for GAP’s Q2 2026 earnings at $0.59 EPS, Q3 2026 earnings at $0.75 EPS, Q4 2026 earnings at $0.57 EPS, FY2026 earnings at $2.34 EPS, Q1 2027 earnings at $0.46 EPS, Q2 2027 earnings at $0.64 EPS, Q3 2027 earnings at $0.79 EPS, Q4 2027 earnings at $0.60 EPS, FY2027 earnings at $2.49 EPS and FY2028 earnings at $2.61 EPS.

A number of other brokerages also recently issued reports on GAP. Barclays boosted their price objective on shares of GAP from $32.00 to $33.00 and gave the company an “overweight” rating in a research report on Friday, March 7th. Argus upgraded shares of GAP from a “hold” rating to a “buy” rating and set a $27.00 target price on the stock in a report on Tuesday, January 21st. Morgan Stanley boosted their target price on shares of GAP from $29.00 to $30.00 and gave the company an “overweight” rating in a report on Friday, November 22nd. Evercore ISI boosted their target price on shares of GAP from $32.00 to $33.00 and gave the company an “outperform” rating in a report on Friday, November 22nd. Finally, Bank of America boosted their target price on shares of GAP from $25.00 to $28.00 and gave the company a “neutral” rating in a report on Friday, November 22nd. Five investment analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $29.25.

GAP Stock Down 3.8 %

Shares of GAP stock opened at $19.35 on Monday. The company has a current ratio of 1.54, a quick ratio of 0.84 and a debt-to-equity ratio of 0.47. The company’s fifty day simple moving average is $22.72 and its two-hundred day simple moving average is $22.53. The company has a market cap of $7.30 billion, a P/E ratio of 8.96, a PEG ratio of 0.94 and a beta of 2.38. GAP has a 12-month low of $18.54 and a 12-month high of $26.41.

GAP (NYSE:GAP) last issued its earnings results on Thursday, March 6th. The company reported $0.54 EPS for the quarter, topping the consensus estimate of $0.36 by $0.18. GAP had a net margin of 5.40% and a return on equity of 29.03%. The company had revenue of $4.15 billion for the quarter, compared to the consensus estimate of $4.07 billion.

GAP Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 30th. Investors of record on Wednesday, April 9th will be paid a $0.165 dividend. This is a boost from GAP’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Wednesday, April 9th. This represents a $0.66 dividend on an annualized basis and a yield of 3.41%. GAP’s payout ratio is presently 29.86%.

Insider Buying and Selling at GAP

In other news, insider Sarah Gilligan sold 29,813 shares of the company’s stock in a transaction dated Friday, March 14th. The shares were sold at an average price of $20.34, for a total transaction of $606,396.42. Following the completion of the sale, the insider now owns 2,634 shares of the company’s stock, valued at $53,575.56. This represents a 91.88 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Elisabeth B. Donohue sold 3,539 shares of the company’s stock in a transaction dated Wednesday, March 12th. The shares were sold at an average price of $21.04, for a total transaction of $74,460.56. Following the sale, the director now directly owns 4,000 shares of the company’s stock, valued at $84,160. The trade was a 46.94 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 136,731 shares of company stock worth $2,780,326. Company insiders own 31.00% of the company’s stock.

Institutional Investors Weigh In On GAP

An institutional investor recently bought a new position in GAP stock. California State Teachers Retirement System purchased a new stake in shares of The Gap, Inc. (NYSE:GAP) in the 4th quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 209,599 shares of the company’s stock, valued at approximately $4,953,000. California State Teachers Retirement System owned about 0.06% of GAP as of its most recent SEC filing. Hedge funds and other institutional investors own 58.81% of the company’s stock.

GAP Company Profile

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.