Zacks Research Issues Negative Estimate for GAP Earnings

The Gap, Inc. (NYSE:GAP) – Analysts at Zacks Research reduced their Q1 2027 earnings estimates for shares of GAP in a note issued to investors on Thursday, March 19th. Zacks Research analyst Team now expects that the company will earn $0.37 per share for the quarter, down from their previous estimate of $0.48. Zacks Research has a “Hold” rating on the stock. The consensus estimate for GAP’s current full-year earnings is $2.02 per share. Zacks Research also issued estimates for GAP’s Q2 2027 earnings at $0.50 EPS, Q3 2027 earnings at $0.73 EPS, FY2027 earnings at $2.25 EPS, Q1 2028 earnings at $0.48 EPS, Q2 2028 earnings at $0.62 EPS, Q3 2028 earnings at $0.83 EPS, Q4 2028 earnings at $0.65 EPS, FY2028 earnings at $2.58 EPS and FY2029 earnings at $2.85 EPS.

GAP (NYSE:GAP) last issued its quarterly earnings data on Thursday, March 5th. The company reported $0.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.46 by ($0.01). GAP had a return on equity of 22.98% and a net margin of 5.31%.The business had revenue of $4.24 billion for the quarter, compared to analyst estimates of $4.24 billion. During the same quarter in the prior year, the firm posted $0.54 earnings per share. The business’s quarterly revenue was up 2.1% on a year-over-year basis. GAP has set its FY 2026 guidance at 2.200-2.350 EPS.

Other research analysts have also issued reports about the company. Argus raised GAP to a “strong-buy” rating in a report on Thursday, January 22nd. JPMorgan Chase & Co. upped their price objective on shares of GAP from $33.00 to $35.00 and gave the stock an “overweight” rating in a report on Friday. Citigroup increased their target price on shares of GAP from $25.00 to $27.00 and gave the company a “neutral” rating in a research report on Friday, March 6th. 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 research note on Friday, January 30th. Finally, Barclays reaffirmed an “overweight” rating on shares of GAP in a research note on Tuesday, January 6th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $30.62.

GAP Stock Up 3.3%

Shares of GAP stock opened at $24.69 on Monday. 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 1-year low of $16.99 and a 1-year high of $29.36. The business’s fifty day moving average price is $26.62 and its two-hundred day moving average price is $25.10. The company has a market capitalization of $9.20 billion, a P/E ratio of 11.48, a PEG ratio of 1.38 and a beta of 2.29.

Institutional Trading of GAP

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Public Employees Retirement System of Ohio boosted its holdings in GAP by 2.7% during the fourth quarter. Public Employees Retirement System of Ohio now owns 73,812 shares of the company’s stock worth $1,890,000 after buying an additional 1,945 shares in the last quarter. Russell Investments Group Ltd. lifted its position in shares of GAP by 94.8% during the 4th quarter. Russell Investments Group Ltd. now owns 72,239 shares of the company’s stock valued at $1,849,000 after acquiring an additional 35,146 shares during the last quarter. Captrust Financial Advisors lifted its position in shares of GAP by 34.4% during the 4th quarter. Captrust Financial Advisors now owns 61,792 shares of the company’s stock valued at $1,582,000 after acquiring an additional 15,816 shares during the last quarter. Entropy Technologies LP boosted its stake in shares of GAP by 53.9% during the 4th quarter. Entropy Technologies LP now owns 110,218 shares of the company’s stock worth $2,822,000 after acquiring an additional 38,588 shares in the last quarter. Finally, Atlas Capital Advisors Inc. bought a new stake in shares of GAP during the 4th quarter worth $203,000. 58.81% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at GAP

In other news, CFO Katrina O’connell sold 153,413 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $23.85, for a total transaction of $3,658,900.05. Following the completion of the transaction, the chief financial officer owned 11,503 shares in the company, valued at approximately $274,346.55. This trade represents a 93.02% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Horacio Barbeito sold 113,684 shares of GAP stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $24.01, for a total transaction of $2,729,552.84. Following the completion of the transaction, the chief executive officer directly owned 115,024 shares in the company, valued at $2,761,726.24. This represents a 49.71% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 509,507 shares of company stock valued at $12,158,495 in the last three months. 31.00% of the stock is currently owned by insiders.

GAP Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 29th. Investors of record on Wednesday, April 8th will be issued a dividend of $0.175 per share. The ex-dividend date of this dividend is Wednesday, April 8th. This is an increase from GAP’s previous quarterly dividend of $0.17. This represents a $0.70 dividend on an annualized basis and a yield of 2.8%. GAP’s dividend payout ratio is presently 30.70%.

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.