The Gap, Inc. (NYSE:GAP) Plans Quarterly Dividend of $0.17

Key Points

• Gap announced a quarterly dividend of $0.175 per share, payable October 28 to shareholders of record October 7. The dividend implies an annualized payout of $0.70 and a yield of approximately 3.5%.
• The dividend appears well covered, with a current payout ratio of 28.1% and an expected future payout ratio of 26.9% based on analysts’ projected earnings.
• Gap’s latest quarterly results slightly missed estimates, reporting $0.38 in EPS versus $0.39 expected and revenue of $3.50 billion versus $3.52 billion forecast. Shares opened at $20.24, down 3.4%, while analysts expect full-year EPS of about $2.34.

The Gap, Inc. (NYSE:GAP - Get Free Report) announced a quarterly dividend on Wednesday, August 12th. Shareholders of record on Wednesday, October 7th will be paid a dividend of 0.175 per share on Wednesday, October 28th. This represents a c) annualized dividend and a yield of 3.5%. The ex-dividend date of this dividend is Wednesday, October 7th.

GAP has a payout ratio of 28.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect GAP to earn $2.60 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 26.9%.

GAP Stock Down 3.4%

Shares of NYSE:GAP opened at $20.24 on Thursday. The company has a market capitalization of $7.29 billion, a price-to-earnings ratio of 7.97, a price-to-earnings-growth ratio of 1.23 and a beta of 2.05. The company has a 50 day moving average of $20.28 and a two-hundred day moving average of $23.46. GAP has a 52-week low of $18.11 and a 52-week high of $29.36. The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41.

GAP (NYSE:GAP - Get Free Report) last posted its earnings results on Thursday, May 28th. The company reported $0.38 EPS for the quarter, missing analysts' consensus estimates of $0.39 by ($0.01). The firm had revenue of $3.50 billion for the quarter, compared to analyst estimates of $3.52 billion. GAP had a return on equity of 21.13% and a net margin of 6.25%.The company's revenue for the quarter was up 1.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.51 earnings per share. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. As a group, analysts forecast that GAP will post 2.34 earnings per share for the current fiscal year.

Hedge Funds Weigh In On GAP

Hedge funds have recently added to or reduced their stakes in the business. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of GAP during the second quarter worth $12,794,000. Northwestern Mutual Wealth Management Co. acquired a new position in shares of GAP in the 2nd quarter valued at about $381,000. Quantbot Technologies LP acquired a new position in shares of GAP in the 2nd quarter valued at about $73,000. Evolve Private Wealth LLC bought a new stake in shares of GAP during the 2nd quarter valued at about $358,000. Finally, Westpac Banking Corp bought a new stake in shares of GAP during the 2nd quarter valued at about $103,000. Institutional investors and hedge funds own 58.81% of the company's stock.

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source