The Gap, Inc. (NYSE:GAP) Shares Will Pay Quarterly Dividend of $0.17

Key Points

• Gap declared a quarterly dividend of $0.175 per share, payable January 27 to shareholders of record January 6. The annualized dividend is $0.70, representing a 3.2% yield.
• The dividend appears well covered: Gap’s payout ratio is 28.1%, and analysts expect next year’s earnings to support an estimated payout ratio of 26.7%.
• In its latest reported quarter, Gap’s earnings per share of $0.52 beat estimates, but revenue of $3.65 billion fell short of forecasts and declined 2% year over year.

The Gap, Inc. (NYSE:GAP - Get Free Report) announced a quarterly dividend on Tuesday, November 10th. Investors of record on Wednesday, January 6th will be paid a dividend of $0.1750 per share on Wednesday, January 27th. This represents a $0.70 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend is Wednesday, January 6th.

GAP has a dividend payout ratio of 28.1% meaning its dividend is sufficiently covered by earnings. Analysts expect GAP to earn $2.62 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 26.7%.

GAP Trading Down 1.9%

NYSE GAP traded down $0.43 on Wednesday, hitting $21.54. 692,767 shares of the stock were exchanged, compared to its average volume of 7,424,973. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.11 and a current ratio of 1.82. The stock has a fifty day moving average price of $22.29 and a two-hundred day moving average price of $22.99. The firm has a market capitalization of $7.57 billion, a P/E ratio of 6.43, a P/E/G ratio of 0.93 and a beta of 2.12. GAP has a 52-week low of $18.11 and a 52-week high of $29.36.

GAP (NYSE:GAP - Get Free Report) last announced its earnings results on Thursday, August 27th. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.04. The business had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.69 billion. GAP had a net margin of 8.14% and a return on equity of 19.72%. The business's revenue for the quarter was down 2.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.57 earnings per share. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. Research analysts forecast that GAP will post 2.40 EPS for the current fiscal year.

Insiders Place Their Bets

In other GAP news, Director William Fisher sold 500,000 shares of the company's stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $23.89, for a total value of $11,945,000.00. Following the completion of the sale, the director directly owned 15,903,198 shares in the company, valued at approximately $379,927,400.22. This represents a 3.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Julie Gruber sold 27,538 shares of the stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $23.56, for a total value of $648,795.28. Following the transaction, the insider directly owned 30,876 shares in the company, valued at $727,438.56. The trade was a 47.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,027,538 shares of company stock valued at $24,249,556. 31.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On GAP

Institutional investors have recently bought and sold shares of the business. Global Retirement Partners LLC purchased a new stake in GAP during the second quarter worth $29,000. Harbour Investments Inc. raised its position in shares of GAP by 86.4% in the 3rd quarter. Harbour Investments Inc. now owns 1,275 shares of the company's stock worth $29,000 after acquiring an additional 591 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of GAP in the 2nd quarter worth $50,000. Quantbot Technologies LP purchased a new stake in shares of GAP during the 2nd quarter worth $73,000. Finally, Westpac Banking Corp purchased a new stake in shares of GAP during the 2nd quarter worth $103,000. 58.81% of the stock is owned by hedge funds and other institutional investors.

GAP Company Profile

Gap Inc. is an American specialty retailer of apparel, accessories and related products. Its portfolio includes Gap, Old Navy, Banana Republic and Athleta, with merchandise sold through company-operated stores and online channels. Founded in San Francisco in 1969 by Donald and Doris Fisher, the company serves customers in North America and other markets through its stores, e-commerce operations and franchise partners. Richard Dickson became Gap Inc.'s president and chief executive officer in 2023.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.