GAP (NYSE:GAP) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Key Points

• GAP missed quarterly expectations, reporting EPS of $0.38 versus the $0.39 consensus estimate and revenue of $3.50 billion versus expectations for $3.52 billion.
• The stock traded higher after the report, rising $0.90 to $24.95 on heavy volume, while the company’s market cap stood at about $9.11 billion.
• GAP also declared a quarterly dividend of $0.175 per share, payable July 29, which annualizes to $0.70 per share and a 2.8% yield.

GAP (NYSE:GAP - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01), FiscalAI reports. The company had revenue of $3.50 billion during the quarter, compared to analyst estimates of $3.52 billion. GAP had a net margin of 5.31% and a return on equity of 22.98%.

GAP Stock Performance

Shares of GAP traded up $0.90 during midday trading on Thursday, reaching $24.95. 13,579,342 shares of the stock were exchanged, compared to its average volume of 7,730,696. The business's 50-day moving average price is $24.24 and its 200 day moving average price is $25.68. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.75 and a quick ratio of 1.08. GAP has a twelve month low of $18.68 and a twelve month high of $29.36. The company has a market capitalization of $9.11 billion, a price-to-earnings ratio of 11.60, a PEG ratio of 1.36 and a beta of 2.11.

GAP Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Stockholders of record on Wednesday, July 8th will be given a dividend of $0.175 per share. The ex-dividend date is Wednesday, July 8th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 2.8%. GAP's payout ratio is 32.56%.

Insider Buying and Selling at GAP

In other news, insider Amanda J. Thompson sold 25,000 shares of GAP stock in a transaction on Monday, April 6th. The shares were sold at an average price of $25.14, for a total value of $628,500.00. Following the transaction, the insider directly owned 86,228 shares of the company's stock, valued at $2,167,771.92. The trade was a 22.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, major shareholder John J. Fisher sold 300,000 shares of GAP stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $25.40, for a total transaction of $7,620,000.00. Following the completion of the transaction, the insider directly owned 446,781 shares in the company, valued at $11,348,237.40. The trade was a 40.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 923,098 shares of company stock valued at $22,648,158. 31.00% of the stock is owned by insiders.

Hedge Funds Weigh In On GAP

Institutional investors have recently modified their holdings of the business. Ameriprise Financial Inc. increased its position in GAP by 42.7% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company's stock valued at $96,134,000 after acquiring an additional 1,318,322 shares during the period. Jump Financial LLC increased its position in GAP by 2,197.8% in the 3rd quarter. Jump Financial LLC now owns 645,150 shares of the company's stock valued at $13,800,000 after acquiring an additional 617,073 shares during the period. Campbell & CO Investment Adviser LLC acquired a new position in GAP in the 4th quarter valued at $2,682,000. Fiduciary Trust Co acquired a new position in GAP in the 3rd quarter valued at $1,716,000. Finally, Lazard Asset Management LLC increased its stake in GAP by 146.4% in the 2nd quarter. Lazard Asset Management LLC now owns 123,726 shares of the company's stock valued at $2,697,000 after buying an additional 73,516 shares during the period. 58.81% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on GAP shares. BTIG Research reduced their price objective on GAP from $31.00 to $28.00 and set a "buy" rating on the stock in a research note on Wednesday, May 20th. Citigroup raised their target price on shares of GAP from $25.00 to $27.00 and gave the company a "neutral" rating in a report on Friday, March 6th. Telsey Advisory Group raised their target price on shares of GAP from $32.00 to $34.00 and gave the company an "outperform" rating in a report on Monday, March 2nd. TD Cowen reduced their target price on shares of GAP from $32.00 to $26.00 and set a "buy" rating on the stock in a report on Monday, May 18th. Finally, The Goldman Sachs Group raised their target price on shares of GAP from $29.00 to $32.00 and gave the company a "buy" rating in a report on Friday, January 30th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, GAP has a consensus rating of "Moderate Buy" and a consensus price target of $30.07.

About GAP

Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand's distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world's largest apparel companies.

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