GAP (NYSE:GAP) Releases Quarterly Earnings Results, Beats Estimates By $0.07 EPS

GAP (NYSE:GAP - Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.51 EPS for the quarter, topping the consensus estimate of $0.44 by $0.07, RTT News reports. GAP had a net margin of 5.40% and a return on equity of 29.03%. The company had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.41 billion. During the same period last year, the firm earned $0.41 EPS. GAP's revenue for the quarter was up 2.2% on a year-over-year basis. GAP updated its FY 2025 guidance to EPS and its Q2 2025 guidance to EPS.

GAP Price Performance

Shares of NYSE GAP traded down $5.53 during trading hours on Friday, reaching $22.42. 58,604,639 shares of the stock traded hands, compared to its average volume of 7,565,454. The company has a market capitalization of $8.44 billion, a P/E ratio of 10.38, a price-to-earnings-growth ratio of 0.94 and a beta of 2.24. The company has a quick ratio of 0.84, a current ratio of 1.54 and a debt-to-equity ratio of 0.47. GAP has a 52-week low of $16.99 and a 52-week high of $29.29. The company's 50-day simple moving average is $22.44 and its two-hundred day simple moving average is $22.92.

GAP Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 30th. Stockholders of record on Wednesday, July 9th will be issued a $0.165 dividend. This represents a $0.66 dividend on an annualized basis and a dividend yield of 2.94%. The ex-dividend date of this dividend is Wednesday, July 9th. GAP's payout ratio is currently 29.86%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. JPMorgan Chase & Co. raised their price target on GAP from $25.00 to $29.00 and gave the stock an "overweight" rating in a report on Monday, May 19th. Jefferies Financial Group reissued a "hold" rating and set a $29.00 price objective (up previously from $26.00) on shares of GAP in a report on Wednesday, May 21st. Barclays raised their target price on GAP from $26.00 to $33.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 27th. Telsey Advisory Group reiterated a "market perform" rating and set a $26.00 price target on shares of GAP in a research report on Friday. Finally, Wells Fargo & Company downgraded shares of GAP from an "overweight" rating to an "equal weight" rating and lowered their price target for the stock from $30.00 to $24.00 in a report on Wednesday, April 30th. Seven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to MarketBeat, GAP currently has a consensus rating of "Moderate Buy" and a consensus price target of $28.47.

Insider Buying and Selling

In related news, insider Sarah Gilligan sold 29,813 shares of the stock in a transaction dated Friday, March 14th. The stock was sold at an average price of $20.34, for a total transaction of $606,396.42. Following the completion of the sale, the insider now directly owns 2,634 shares in the company, valued at $53,575.56. This represents a 91.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Mark Breitbard sold 51,385 shares of the firm's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $27.00, for a total value of $1,387,395.00. Following the transaction, the chief executive officer now owns 123,985 shares in the company, valued at approximately $3,347,595. The trade was a 29.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 228,880 shares of company stock worth $4,985,854 in the last quarter. 31.00% of the stock is owned by insiders.

Institutional Trading of GAP

An institutional investor recently bought a new position in GAP stock. Amundi purchased a new stake in shares of The Gap, Inc. (NYSE:GAP - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 12,564 shares of the company's stock, valued at approximately $259,000. Hedge funds and other institutional investors own 58.81% of the company's stock.

About GAP

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.