The Gap, Inc. (NYSE:GAP) Announces Quarterly Dividend of $0.17

The Gap, Inc. (NYSE:GAP) announced a quarterly dividend on Tuesday, November 10th. Stockholders of record on Wednesday, January 6th will be given a dividend of $0.1750 per share on Wednesday, January 27th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Wednesday, January 6th.

GAP has a payout ratio of 28.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect GAP to earn $2.62 per share next year, which means the company should continue to be able to cover its $0.70 annual dividend with an expected future payout ratio of 26.7%.

GAP Stock Down 1.9%

Shares of NYSE:GAP traded down $0.43 during trading on Wednesday, reaching $21.54. The stock had a trading volume of 692,767 shares, compared to its average volume of 7,424,973. The firm’s 50-day simple moving average is $22.29 and its 200 day simple moving average is $22.99. The company has a current ratio of 1.82, a quick ratio of 1.11 and a debt-to-equity ratio of 0.38. GAP has a one year low of $18.11 and a one year high of $29.36. The company has a market capitalization of $7.57 billion, a P/E ratio of 6.43, a PEG ratio of 0.93 and a beta of 2.12.

GAP (NYSE:GAP) last posted its quarterly earnings results on Thursday, August 27th. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.48 by $0.04. GAP had a net margin of 8.14% and a return on equity of 19.72%. The company had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.69 billion. During the same period last year, the firm posted $0.57 EPS. GAP’s revenue for the quarter was down 2.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. As a group, research analysts expect that GAP will post 2.40 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Wells Fargo & Company increased their price objective on shares of GAP from $22.00 to $23.00 and gave the stock a “cautious” rating in a research note on Friday, August 28th. UBS Group boosted their target price on shares of GAP from $40.00 to $42.00 and gave the company a “buy” rating in a research report on Friday, August 28th. Barclays increased their price target on GAP from $20.00 to $23.00 and gave the stock an “equal weight” rating in a research report on Friday, August 28th. The Goldman Sachs Group lifted their price objective on GAP from $25.00 to $27.00 and gave the company a “buy” rating in a research note on Monday, August 31st. Finally, Weiss Ratings raised GAP from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 29th. Two equities research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $27.07.

GAP Company Profile

Gap Inc. is an American specialty retailer of apparel, accessories and related products. Its portfolio includes Gap, Old Navy, Banana Republic and Athleta, with merchandise sold through company-operated stores and online channels. Founded in San Francisco in 1969 by Donald and Doris Fisher, the company serves customers in North America and other markets through its stores, e-commerce operations and franchise partners. Richard Dickson became Gap Inc.’s president and chief executive officer in 2023.