GAP (NYSE:GAP) Announces Earnings Results, Beats Estimates By $0.04 EPS

GAP (NYSE:GAP) released its earnings results on Thursday. The company reported $0.62 EPS for the quarter, beating the consensus estimate of $0.58 by $0.04, Zacks reports. The firm had revenue of $3.94 billion for the quarter, compared to analysts’ expectations of $3.90 billion. GAP had a net margin of 5.86% and a return on equity of 27.04%. GAP’s quarterly revenue was up 3.0% on a year-over-year basis. During the same quarter last year, the company earned $0.72 EPS. GAP updated its FY 2025 guidance to EPS.

GAP Stock Performance

Shares of GAP opened at $24.96 on Friday. The company has a 50-day moving average of $22.58 and a two-hundred day moving average of $22.49. The stock has a market cap of $9.26 billion, a price-to-earnings ratio of 10.67, a PEG ratio of 2.70 and a beta of 2.17. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.68 and a quick ratio of 0.96. GAP has a one year low of $16.99 and a one year high of $29.29.

GAP Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 28th. Shareholders of record on Wednesday, January 7th will be paid a dividend of $0.165 per share. The ex-dividend date of this dividend is Wednesday, January 7th. This represents a $0.66 dividend on an annualized basis and a yield of 2.6%. GAP’s dividend payout ratio is currently 28.21%.

Insider Buying and Selling

In related news, Director Robert J. Fisher sold 500,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 24th. The shares were sold at an average price of $22.90, for a total value of $11,450,000.00. Following the completion of the sale, the director owned 2,829,502 shares in the company, valued at approximately $64,795,595.80. This represents a 15.02% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director William Sydney Fisher sold 200,000 shares of the firm’s stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $23.86, for a total transaction of $4,772,000.00. Following the completion of the transaction, the director directly owned 3,253,453 shares of the company’s stock, valued at $77,627,388.58. This represents a 5.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 943,064 shares of company stock worth $22,011,784 in the last 90 days. 30.56% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Public Employees Retirement System of Ohio raised its position in GAP by 0.6% during the third quarter. Public Employees Retirement System of Ohio now owns 71,867 shares of the company’s stock valued at $1,537,000 after buying an additional 447 shares during the period. California State Teachers Retirement System grew its stake in GAP by 0.8% during the 2nd quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock valued at $4,940,000 after acquiring an additional 1,703 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in GAP by 177.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock valued at $153,000 after acquiring an additional 4,483 shares in the last quarter. Russell Investments Group Ltd. increased its holdings in shares of GAP by 16.8% in the 3rd quarter. Russell Investments Group Ltd. now owns 37,093 shares of the company’s stock valued at $793,000 after purchasing an additional 5,326 shares during the period. Finally, State of Tennessee Department of Treasury lifted its position in shares of GAP by 10.5% in the second quarter. State of Tennessee Department of Treasury now owns 99,990 shares of the company’s stock worth $2,181,000 after purchasing an additional 9,542 shares in the last quarter. Hedge funds and other institutional investors own 58.81% of the company’s stock.

Wall Street Analysts Forecast Growth

GAP has been the subject of several recent analyst reports. BTIG Research increased their price objective on shares of GAP from $30.00 to $31.00 and gave the company a “buy” rating in a report on Friday. Robert W. Baird increased their price target on GAP from $26.00 to $27.00 and gave the company a “neutral” rating in a research note on Friday. The Goldman Sachs Group lifted their price target on GAP from $26.00 to $29.00 and gave the company a “buy” rating in a research report on Friday. Citigroup upped their price objective on GAP from $22.00 to $23.00 and gave the company a “neutral” rating in a report on Wednesday, November 5th. Finally, Jefferies Financial Group raised GAP from a “hold” rating to a “buy” rating and raised their target price for the company from $22.00 to $30.00 in a research note on Friday, November 14th. Eight investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, GAP currently has an average rating of “Moderate Buy” and a consensus target price of $27.43.

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.