The Gap, Inc. (NYSE:GAP) to Issue $0.17 Quarterly Dividend

The Gap, Inc. (NYSE:GAP) declared a quarterly dividend on Wednesday, August 12th. Shareholders of record on Wednesday, October 7th will be paid a dividend of 0.175 per share on Wednesday, October 28th. This represents a c) dividend on an annualized basis and a yield of 3.5%. The ex-dividend date of this dividend is Wednesday, October 7th.

GAP has a dividend payout ratio of 28.1% meaning its dividend is sufficiently covered by earnings. Analysts expect GAP to earn $2.60 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 26.9%.

GAP Stock Down 3.4%

GAP stock opened at $20.24 on Thursday. The firm has a market cap of $7.29 billion, a PE ratio of 7.97, a PEG ratio of 1.23 and a beta of 2.05. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.08 and a current ratio of 1.81. The firm’s 50 day moving average price is $20.28 and its 200-day moving average price is $23.46. GAP has a one year low of $18.11 and a one year high of $29.36.

GAP (NYSE:GAP) last issued its quarterly earnings data on Thursday, May 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). The company had revenue of $3.50 billion during the quarter, compared to analysts’ expectations of $3.52 billion. GAP had a net margin of 6.25% and a return on equity of 21.13%. The firm’s quarterly revenue was up 1.0% on a year-over-year basis. During the same quarter last year, the firm posted $0.51 earnings per share. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, equities research analysts anticipate that GAP will post 2.34 EPS for the current year.

Analyst Ratings Changes

A number of research firms recently weighed in on GAP. JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a $27.00 price objective (down from $35.00) on shares of GAP in a research report on Friday, May 29th. Bank of America dropped their price objective on GAP from $29.00 to $26.00 and set a “neutral” rating for the company in a research note on Friday, May 29th. The Goldman Sachs Group lowered their target price on GAP from $32.00 to $28.00 and set a “buy” rating for the company in a report on Friday, May 29th. Morgan Stanley reissued an “equal weight” rating and set a $21.00 price target on shares of GAP in a research report on Monday, July 6th. Finally, Barclays reiterated an “equal weight” rating and set a $20.00 target price (down from $26.00) on shares of GAP in a report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $26.71.

About GAP

Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand’s distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world’s largest apparel companies.