Zacks Research Weighs in on GAP’s Q1 Earnings (NYSE:GAP)

The Gap, Inc. (NYSE:GAP) – Equities research analysts at Zacks Research lifted their Q1 2027 EPS estimates for shares of GAP in a report issued on Thursday, June 12th. Zacks Research analyst R. Lohia now expects that the company will post earnings per share of $0.49 for the quarter, up from their prior forecast of $0.47. The consensus estimate for GAP’s current full-year earnings is $2.02 per share. Zacks Research also issued estimates for GAP’s FY2028 earnings at $2.54 EPS.

Several other analysts have also recently commented on the company. UBS Group lowered their price target on GAP from $29.00 to $27.00 and set a “neutral” rating for the company in a report on Friday, May 30th. The Goldman Sachs Group reduced their price objective on GAP from $34.00 to $25.00 and set a “buy” rating on the stock in a research note on Tuesday, April 22nd. Wells Fargo & Company downgraded shares of GAP from an “overweight” rating to an “equal weight” rating and decreased their target price for the company from $30.00 to $24.00 in a research note on Wednesday, April 30th. Telsey Advisory Group reaffirmed a “market perform” rating and issued a $26.00 target price on shares of GAP in a research report on Friday, May 30th. Finally, Robert W. Baird lowered their price objective on GAP from $31.00 to $29.00 and set a “neutral” rating for the company in a report on Friday, March 7th. Seven analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat, GAP currently has an average rating of “Moderate Buy” and an average price target of $28.47.

GAP Stock Performance

NYSE GAP opened at $21.03 on Monday. The company has a quick ratio of 0.98, a current ratio of 1.71 and a debt-to-equity ratio of 0.45. GAP has a fifty-two week low of $16.99 and a fifty-two week high of $29.29. The business has a fifty day moving average of $22.88 and a 200-day moving average of $22.81. The stock has a market cap of $7.92 billion, a price-to-earnings ratio of 9.10, a price-to-earnings-growth ratio of 2.26 and a beta of 2.20.

GAP (NYSE:GAP) last posted its earnings results on Thursday, May 29th. The company reported $0.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.44 by $0.07. The firm had revenue of $3.46 billion for the quarter, compared to analyst estimates of $3.41 billion. GAP had a return on equity of 27.86% and a net margin of 5.80%. GAP’s revenue was up 2.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.41 EPS.

GAP Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 30th. Investors of record on Wednesday, July 9th will be given a dividend of $0.165 per share. This represents a $0.66 annualized dividend and a yield of 3.14%. The ex-dividend date is Wednesday, July 9th. GAP’s payout ratio is 28.57%.

Insider Activity at GAP

In other news, CEO Mark Breitbard sold 51,385 shares of the firm’s stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $27.00, for a total transaction of $1,387,395.00. Following the completion of the sale, the chief executive officer now directly owns 123,985 shares of the company’s stock, valued at $3,347,595. This trade represents a 29.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Horacio Barbeito sold 40,764 shares of the firm’s stock in a transaction on Friday, March 21st. The shares were sold at an average price of $20.07, for a total transaction of $818,133.48. Following the transaction, the chief executive officer now owns 308 shares in the company, valued at $6,181.56. This represents a 99.25% decrease in their position. The disclosure for this sale can be found here. 31.00% of the stock is owned by insiders.

Institutional Investors Weigh In On GAP

Several hedge funds have recently made changes to their positions in GAP. Dodge & Cox bought a new stake in shares of GAP in the 1st quarter worth approximately $592,222,000. Ameriprise Financial Inc. acquired a new position in shares of GAP in the first quarter valued at $63,674,000. Bank of New York Mellon Corp bought a new position in GAP in the first quarter worth $56,763,000. LSV Asset Management bought a new position in GAP in the first quarter worth $32,655,000. Finally, Rhumbline Advisers bought a new stake in GAP in the 1st quarter valued at $12,210,000. Institutional investors own 58.81% of the company’s stock.

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.