Telsey Advisory Group Expects Increased Earnings for GAP

The Gap, Inc. (NYSE:GAP) – Research analysts at Telsey Advisory Group upped their FY2026 earnings per share (EPS) estimates for shares of GAP in a report released on Friday, November 21st. Telsey Advisory Group analyst D. Telsey now expects that the company will post earnings of $2.12 per share for the year, up from their previous estimate of $2.05. Telsey Advisory Group has a “Market Perform” rating and a $26.00 price objective on the stock. The consensus estimate for GAP’s current full-year earnings is $2.02 per share. Telsey Advisory Group also issued estimates for GAP’s Q4 2026 earnings at $0.43 EPS, Q1 2027 earnings at $0.47 EPS, Q3 2027 earnings at $0.68 EPS, Q4 2027 earnings at $0.49 EPS and FY2027 earnings at $2.23 EPS.

Other research analysts have also issued reports about the stock. The Goldman Sachs Group upped their target price on shares of GAP from $26.00 to $29.00 and gave the stock a “buy” rating in a research report on Friday. UBS Group raised their price objective on GAP from $25.00 to $26.00 and gave the company a “neutral” rating in a research note on Friday. JPMorgan Chase & Co. boosted their target price on GAP from $32.00 to $36.00 and gave the stock an “overweight” rating in a research report on Friday. Bank of America raised their price target on GAP from $23.00 to $27.00 and gave the company a “neutral” rating in a research report on Friday. Finally, Morgan Stanley increased their price objective on shares of GAP from $30.00 to $31.00 and gave the company an “overweight” rating in a research note on Friday. Eight equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $27.57.

GAP Stock Down 0.8%

Shares of NYSE GAP opened at $24.76 on Monday. The stock has a market capitalization of $9.19 billion, a price-to-earnings ratio of 10.58, a price-to-earnings-growth ratio of 2.70 and a beta of 2.17. GAP has a 52 week low of $16.99 and a 52 week high of $29.29. The firm has a 50-day moving average price of $22.59 and a 200 day moving average price of $22.50. The company has a quick ratio of 0.96, a current ratio of 1.68 and a debt-to-equity ratio of 0.43.

GAP (NYSE:GAP) last released its earnings results on Thursday, November 20th. The company reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.58 by $0.04. GAP had a return on equity of 27.04% and a net margin of 5.86%.The company had revenue of $3.94 billion during the quarter, compared to the consensus estimate of $3.90 billion. During the same quarter last year, the company earned $0.72 earnings per share. GAP’s quarterly revenue was up 3.0% compared to the same quarter last year. GAP has set its FY 2025 guidance at EPS.

Institutional Trading of GAP

A number of hedge funds have recently added to or reduced their stakes in the business. Root Financial Partners LLC acquired a new position in shares of GAP during the 3rd quarter valued at about $27,000. Cornerstone Planning Group LLC acquired a new position in shares of GAP in the 3rd quarter valued at $35,000. Brooklyn Investment Group purchased a new stake in shares of GAP during the 1st quarter valued at $80,000. Covestor Ltd purchased a new position in shares of GAP in the 1st quarter worth $82,000. Finally, Plato Investment Management Ltd acquired a new position in GAP in the first quarter valued at $121,000. 58.81% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, Director William Sydney Fisher sold 243,064 shares of the company’s stock in a transaction that occurred on Thursday, September 4th. The shares were sold at an average price of $23.82, for a total transaction of $5,789,784.48. Following the transaction, the director owned 3,453,453 shares of the company’s stock, valued at approximately $82,261,250.46. This represents a 6.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Robert J. Fisher sold 500,000 shares of the business’s stock in a transaction on Wednesday, September 24th. The shares were sold at an average price of $22.90, for a total value of $11,450,000.00. Following the completion of the transaction, the director owned 2,829,502 shares of the company’s stock, valued at $64,795,595.80. This trade represents a 15.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 943,064 shares of company stock valued at $22,011,784 in the last three months. 30.56% of the stock is currently owned by corporate insiders.

GAP Dividend Announcement

The business also recently disclosed 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 2.7%. The ex-dividend date is Wednesday, January 7th. GAP’s dividend payout ratio (DPR) is currently 29.46%.

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.