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

The Gap, Inc. (NYSE:GAP) – Analysts at Zacks Research boosted their Q1 2027 earnings estimates for shares of GAP in a report issued on Thursday, June 12th. Zacks Research analyst R. Lohia now expects that the company will earn $0.49 per share for the quarter, up from their previous estimate 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 research analysts have also commented on the company. UBS Group cut their price target on GAP from $29.00 to $27.00 and set a “neutral” rating on the stock in a research report on Friday, May 30th. Jefferies Financial Group restated a “hold” rating and set a $29.00 target price (up from $26.00) on shares of GAP in a research report on Wednesday, May 21st. Telsey Advisory Group reaffirmed a “market perform” rating and issued a $26.00 target price on shares of GAP in a report on Friday, May 30th. Wells Fargo & Company cut shares of GAP from an “overweight” rating to an “equal weight” rating and decreased their price target for the stock from $30.00 to $24.00 in a research note on Wednesday, April 30th. Finally, Barclays raised their price objective on shares of GAP from $26.00 to $33.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 27th. Seven equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $28.47.

GAP Stock Down 0.6%

GAP stock opened at $21.03 on Monday. The company has a market capitalization of $7.92 billion, a P/E ratio of 9.10, a PEG ratio of 2.26 and a beta of 2.20. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.98 and a current ratio of 1.71. GAP has a fifty-two week low of $16.99 and a fifty-two week high of $29.29. The stock has a 50-day simple moving average of $22.88 and a 200-day simple moving average of $22.81.

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

GAP Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 30th. Shareholders of record on Wednesday, July 9th will be issued a $0.165 dividend. This represents a $0.66 dividend on an annualized basis and a yield of 3.14%. The ex-dividend date is Wednesday, July 9th. GAP’s dividend payout ratio is presently 28.57%.

Insider Buying and Selling at GAP

In other GAP news, CEO Horacio Barbeito sold 40,764 shares of the firm’s stock in a transaction on Friday, March 21st. The stock was sold at an average price of $20.07, for a total value of $818,133.48. Following the completion of the sale, the chief executive officer now owns 308 shares of the company’s stock, valued at approximately $6,181.56. This trade represents a 99.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Mark Breitbard sold 51,385 shares of the company’s stock in a transaction on 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 transaction, the chief executive officer now directly owns 123,985 shares in the company, valued at approximately $3,347,595. This trade represents a 29.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. 31.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Dodge & Cox purchased a new stake in shares of GAP during the 1st quarter worth approximately $592,222,000. Ameriprise Financial Inc. acquired a new position in GAP during the first quarter worth $63,674,000. Bank of New York Mellon Corp purchased a new stake in GAP during the first quarter worth $56,763,000. LSV Asset Management acquired a new stake in GAP in the first quarter valued at $32,655,000. Finally, Rhumbline Advisers acquired a new stake in GAP in the first quarter valued at $12,210,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

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.