Zacks Research Analysts Raise Earnings Estimates for GAP

The Gap, Inc. (NYSE:GAP) – Equities researchers at Zacks Research boosted their Q1 2027 earnings estimates for shares of GAP in a research report issued on Thursday, June 12th. Zacks Research analyst R. Lohia now forecasts that the company will earn $0.49 per share for the quarter, up from their prior 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.

GAP (NYSE:GAP) last announced its quarterly earnings data on Thursday, May 29th. The company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.44 by $0.07. GAP had a net margin of 5.40% and a return on equity of 29.03%. The business had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.41 billion. During the same period in the previous year, the business earned $0.41 earnings per share. The company’s revenue was up 2.2% on a year-over-year basis.

Other analysts also recently issued reports about the company. Wells Fargo & Company downgraded GAP from an “overweight” rating to an “equal weight” rating and dropped their price objective for the stock from $30.00 to $24.00 in a research report on Wednesday, April 30th. Jefferies Financial Group reissued a “hold” rating and set a $29.00 target price (up previously from $26.00) on shares of GAP in a research note on Wednesday, May 21st. Citigroup dropped their target price on shares of GAP from $33.00 to $30.00 and set a “buy” rating for the company in a report on Friday, May 30th. The Goldman Sachs Group reduced their price target on shares of GAP from $34.00 to $25.00 and set a “buy” rating on the stock in a research note on Tuesday, April 22nd. Finally, Barclays upped 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 research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $28.47.

GAP Trading Down 3.5%

Shares of GAP opened at $20.86 on Monday. GAP has a 52-week low of $16.99 and a 52-week high of $29.29. The business’s fifty day moving average is $22.79 and its 200-day moving average is $22.85. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.84 and a current ratio of 1.54. The firm has a market cap of $7.86 billion, a price-to-earnings ratio of 9.66, a PEG ratio of 0.94 and a beta of 2.20.

GAP Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 30th. Shareholders of record on Wednesday, July 9th will be given a $0.165 dividend. This represents a $0.66 annualized dividend and a yield of 3.16%. The ex-dividend date is Wednesday, July 9th. GAP’s dividend payout ratio (DPR) is currently 28.57%.

Insider Activity

In related news, CEO Mark Breitbard sold 51,385 shares of the stock in a transaction on Friday, May 16th. The stock was sold at an average price of $27.00, for a total value of $1,387,395.00. Following the completion of the sale, the chief executive officer now directly owns 123,985 shares in the company, valued at $3,347,595. This represents a 29.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, 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 stock was sold at an average price of $20.07, for a total value of $818,133.48. Following the transaction, the chief executive officer now directly owns 308 shares of the company’s stock, valued at approximately $6,181.56. This represents a 99.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 99,444 shares of company stock valued at $2,348,404. Insiders own 30.56% of the company’s stock.

Hedge Funds Weigh In On GAP

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