GAP (NYSE:GAP) Shares Gap Up After Earnings Beat

Shares of The Gap, Inc. (NYSE:GAP) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $23.06, but opened at $24.35. GAP shares last traded at $24.4190, with a volume of 7,787,609 shares trading hands.

The company reported $0.62 earnings per share for the quarter, beating analysts’ consensus estimates of $0.58 by $0.04. GAP had a net margin of 5.86% and a return on equity of 27.04%. The firm had revenue of $3.94 billion for the quarter, compared to analysts’ expectations of $3.90 billion. During the same period in the previous year, the company posted $0.72 earnings per share. GAP’s revenue was up 3.0% compared to the same quarter last year. GAP has set its FY 2025 guidance at EPS.

GAP Announces Dividend

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

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Barclays lowered GAP from an “overweight” rating to an “equal weight” rating and cut their price objective for the company from $24.00 to $19.00 in a research report on Friday, August 22nd. Bank of America raised their target price on GAP from $23.00 to $27.00 and gave the company a “neutral” rating in a report on Friday. Jefferies Financial Group raised GAP from a “hold” rating to a “buy” rating and boosted their price target for the stock from $22.00 to $30.00 in a research report on Friday, November 14th. Citigroup upped their price target on GAP from $22.00 to $23.00 and gave the stock a “neutral” rating in a report on Wednesday, November 5th. Finally, Telsey Advisory Group lifted their price objective on shares of GAP from $24.00 to $26.00 and gave the company a “market perform” rating in a research note on Friday. Eight analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $27.43.

Insider Buying and Selling at GAP

In other GAP news, Director William Sydney Fisher sold 200,000 shares of the stock in a transaction on Monday, September 15th. The shares were sold at an average price of $23.86, for a total transaction of $4,772,000.00. Following the transaction, the director directly owned 3,253,453 shares in the company, valued at $77,627,388.58. This represents a 5.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Robert J. Fisher sold 500,000 shares of the business’s stock in a transaction dated Wednesday, September 24th. The stock was sold at an average price of $22.90, for a total transaction of $11,450,000.00. Following the completion of the sale, the director directly owned 2,829,502 shares of the company’s stock, valued at $64,795,595.80. The trade was a 15.02% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 943,064 shares of company stock worth $22,011,784 over the last ninety days. 30.56% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On GAP

Institutional investors and hedge funds have recently made changes to their positions in the company. Teachers Retirement System of The State of Kentucky bought a new position in GAP during the first quarter worth $1,418,000. KLP Kapitalforvaltning AS bought a new position in shares of GAP in the 1st quarter worth about $1,057,000. Neo Ivy Capital Management bought a new position in shares of GAP in the 1st quarter worth about $322,000. LSV Asset Management acquired a new position in shares of GAP in the 1st quarter valued at about $32,655,000. Finally, Covestor Ltd bought a new stake in shares of GAP during the 1st quarter valued at about $82,000. 58.81% of the stock is owned by institutional investors and hedge funds.

GAP Trading Up 8.2%

The company has a current ratio of 1.68, a quick ratio of 0.96 and a debt-to-equity ratio of 0.43. The business’s 50-day moving average is $22.58 and its two-hundred day moving average is $22.49. The firm has a market cap of $9.26 billion, a P/E ratio of 10.67, a P/E/G ratio of 2.70 and a beta of 2.17.

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.