Jefferies Financial Group Comments on The Gap, Inc.’s Q2 2023 Earnings (NYSE:GPS)

The Gap, Inc. (NYSE:GPS – Get Rating) – Analysts at Jefferies Financial Group cut their Q2 2023 earnings estimates for GAP in a research report issued to clients and investors on Thursday, April 21st. Jefferies Financial Group analyst C. Tarlowe now expects that the apparel retailer will earn $0.47 per share for the quarter, down from their previous estimate of $0.52. Jefferies Financial Group also issued estimates for GAP’s Q4 2023 earnings at $0.65 EPS, Q2 2024 earnings at $0.52 EPS and Q3 2024 earnings at $0.61 EPS.

GAP (NYSE:GPS – Get Rating) last posted its quarterly earnings data on Thursday, March 3rd. The apparel retailer reported ($0.02) EPS for the quarter, topping analysts’ consensus estimates of ($0.14) by $0.12. The firm had revenue of $4.53 billion during the quarter, compared to analysts’ expectations of $4.49 billion. GAP had a return on equity of 19.48% and a net margin of 1.54%. The firm’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.28 EPS.

A number of other analysts have also recently commented on the company. Daiwa Capital Markets cut GAP from a “neutral” rating to an “underperform” rating and set a $13.75 price objective for the company. in a research report on Wednesday, March 9th. The Goldman Sachs Group lowered their price target on GAP from $20.00 to $14.00 and set a “neutral” rating for the company in a report on Friday. Credit Suisse Group lowered their price target on GAP from $16.00 to $13.00 and set a “neutral” rating for the company in a report on Friday. Wells Fargo & Company lowered their price target on GAP from $25.00 to $20.00 and set an “overweight” rating for the company in a report on Tuesday, April 5th. Finally, Robert W. Baird lowered their price target on GAP from $18.00 to $14.00 in a report on Friday. Four research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $18.93.

GAP stock opened at $11.72 on Monday. The stock has a market cap of $4.33 billion, a PE ratio of 17.76, a P/E/G ratio of 0.63 and a beta of 1.70. The stock has a 50-day moving average price of $14.29 and a 200 day moving average price of $17.70. GAP has a 52 week low of $11.07 and a 52 week high of $37.63. The company has a current ratio of 1.27, a quick ratio of 0.53 and a debt-to-equity ratio of 0.55.

A number of hedge funds have recently modified their holdings of the business. Dodge & Cox increased its position in GAP by 6.0% in the 4th quarter. Dodge & Cox now owns 24,490,528 shares of the apparel retailer’s stock worth $432,258,000 after purchasing an additional 1,381,050 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of GAP by 2.8% during the 4th quarter. Geode Capital Management LLC now owns 3,858,043 shares of the apparel retailer’s stock valued at $67,991,000 after acquiring an additional 104,716 shares during the last quarter. Carmignac Gestion increased its holdings in shares of GAP by 25.4% during the 3rd quarter. Carmignac Gestion now owns 3,291,252 shares of the apparel retailer’s stock valued at $74,718,000 after acquiring an additional 666,301 shares during the last quarter. Parametric Portfolio Associates LLC increased its holdings in shares of GAP by 6.3% during the 4th quarter. Parametric Portfolio Associates LLC now owns 1,813,988 shares of the apparel retailer’s stock valued at $32,017,000 after acquiring an additional 106,730 shares during the last quarter. Finally, Bank of New York Mellon Corp increased its holdings in shares of GAP by 1.9% during the 3rd quarter. Bank of New York Mellon Corp now owns 1,774,210 shares of the apparel retailer’s stock valued at $40,274,000 after acquiring an additional 32,404 shares during the last quarter. 58.29% of the stock is currently owned by institutional investors.

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 27th. Shareholders of record on Wednesday, April 6th will be given a $0.15 dividend. This is a positive change from GAP’s previous quarterly dividend of $0.12. This represents a $0.60 annualized dividend and a yield of 5.12%. The ex-dividend date of this dividend is Tuesday, April 5th. GAP’s dividend payout ratio is presently 90.91%.

About GAP (Get Rating)

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 denim, tees, fleece, and khakis; eyewear, jewelry, shoes, handbags, and fragrances; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls.

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