Zacks Research Comments on The Gap, Inc.’s FY2027 Earnings (NYSE:GPS)

The Gap, Inc. (NYSE:GPS) – Investment analysts at Zacks Research raised their FY2027 earnings per share (EPS) estimates for shares of GAP in a research report issued to clients and investors on Thursday, April 18th. Zacks Research analyst R. Lohia now anticipates that the apparel retailer will post earnings per share of $1.55 for the year, up from their previous estimate of $1.51. The consensus estimate for GAP’s current full-year earnings is $1.36 per share.

Other research analysts have also issued research reports about the company. BMO Capital Markets boosted their price objective on GAP from $14.00 to $18.00 and gave the company a “market perform” rating in a research report on Friday, March 22nd. TheStreet upgraded GAP from a “c” rating to a “b-” rating in a research report on Thursday, March 7th. StockNews.com upgraded GAP from a “hold” rating to a “buy” rating in a research report on Thursday, February 15th. KGI Securities boosted their price objective on GAP from $9.10 to $25.20 and gave the company a “buy” rating in a research report on Friday, March 22nd. Finally, Barclays lifted their target price on GAP from $26.00 to $28.00 and gave the company an “overweight” rating in a research note on Friday, March 22nd. One analyst has rated the stock with a sell rating, seven have issued a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat, GAP currently has a consensus rating of “Hold” and a consensus price target of $18.89.

GAP Price Performance

Shares of GPS opened at $20.54 on Friday. The firm has a market cap of $7.67 billion, a price-to-earnings ratio of 15.70, a PEG ratio of 1.30 and a beta of 2.28. The stock has a 50 day moving average of $22.53 and a 200-day moving average of $19.17. The company has a current ratio of 1.42, a quick ratio of 0.78 and a debt-to-equity ratio of 0.57. GAP has a 52 week low of $7.22 and a 52 week high of $28.59.

GAP (NYSE:GPS) last announced its earnings results on Thursday, March 7th. The apparel retailer reported $0.49 EPS for the quarter, beating the consensus estimate of $0.20 by $0.29. GAP had a return on equity of 22.56% and a net margin of 3.37%. The business had revenue of $4.30 billion for the quarter, compared to the consensus estimate of $4.22 billion. During the same period last year, the business posted ($0.75) EPS. The company’s revenue was up 1.3% on a year-over-year basis.

GAP Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 1st. Stockholders of record on Wednesday, April 10th will be paid a dividend of $0.15 per share. The ex-dividend date is Tuesday, April 9th. This represents a $0.60 annualized dividend and a dividend yield of 2.92%. GAP’s dividend payout ratio (DPR) is presently 44.78%.

Insider Transactions at GAP

In other GAP news, insider Sarah Gilligan sold 29,425 shares of the company’s stock in a transaction that occurred on Thursday, March 14th. The stock was sold at an average price of $22.58, for a total value of $664,416.50. Following the completion of the transaction, the insider now owns 1,697 shares of the company’s stock, valued at approximately $38,318.26. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. In other GAP news, insider Julie Gruber sold 24,180 shares of the company’s stock in a transaction that occurred on Tuesday, March 12th. The stock was sold at an average price of $23.00, for a total value of $556,140.00. Following the completion of the transaction, the insider now owns 1,384 shares of the company’s stock, valued at approximately $31,832. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Sarah Gilligan sold 29,425 shares of the company’s stock in a transaction that occurred on Thursday, March 14th. The shares were sold at an average price of $22.58, for a total value of $664,416.50. Following the completion of the transaction, the insider now directly owns 1,697 shares of the company’s stock, valued at approximately $38,318.26. The disclosure for this sale can be found here. In the last quarter, insiders sold 266,723 shares of company stock worth $6,886,765. 30.81% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On GAP

Several large investors have recently modified their holdings of the stock. Ameriprise Financial Inc. grew its stake in shares of GAP by 73.4% in the 3rd quarter. Ameriprise Financial Inc. now owns 3,572,524 shares of the apparel retailer’s stock valued at $37,976,000 after purchasing an additional 1,512,067 shares during the period. Bank of New York Mellon Corp grew its position in GAP by 1.3% during the 3rd quarter. Bank of New York Mellon Corp now owns 3,122,321 shares of the apparel retailer’s stock worth $25,633,000 after acquiring an additional 40,348 shares during the last quarter. Geode Capital Management LLC grew its position in GAP by 5.0% during the 2nd quarter. Geode Capital Management LLC now owns 3,036,564 shares of the apparel retailer’s stock worth $27,117,000 after acquiring an additional 145,468 shares during the last quarter. Hennessy Advisors Inc. grew its position in GAP by 14.1% during the 1st quarter. Hennessy Advisors Inc. now owns 2,305,600 shares of the apparel retailer’s stock worth $63,519,000 after acquiring an additional 285,000 shares during the last quarter. Finally, Marshall Wace LLP bought a new stake in GAP during the 4th quarter worth approximately $20,617,000. 58.81% of the stock is currently owned by institutional investors.

About GAP

The Gap, Inc operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include adult apparel and accessories; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls.