Zacks Research Issues Optimistic Forecast for GAP Earnings

The Gap, Inc. (NYSE:GAP - Free Report) - Analysts at Zacks Research increased their Q1 2026 earnings per share estimates for GAP in a research note issued to investors on Wednesday, April 9th. Zacks Research analyst R. Lohia now anticipates that the company will post earnings of $0.43 per share for the quarter, up from their previous estimate of $0.42. The consensus estimate for GAP's current full-year earnings is $2.02 per share. Zacks Research also issued estimates for GAP's Q3 2026 earnings at $0.77 EPS, Q4 2026 earnings at $0.58 EPS, FY2026 earnings at $2.36 EPS, Q1 2027 earnings at $0.47 EPS, Q3 2027 earnings at $0.81 EPS, Q4 2027 earnings at $0.61 EPS and FY2027 earnings at $2.53 EPS.

GAP (NYSE:GAP - Get Free Report) last issued its quarterly earnings data on Thursday, March 6th. The company reported $0.54 EPS for the quarter, beating the consensus estimate of $0.36 by $0.18. GAP had a net margin of 5.40% and a return on equity of 29.03%. The firm had revenue of $4.15 billion during the quarter, compared to the consensus estimate of $4.07 billion.

Other research analysts have also issued reports about the stock. UBS Group decreased their price objective on shares of GAP from $26.00 to $25.00 and set a "neutral" rating for the company in a report on Monday, March 10th. Robert W. Baird cut their price objective on GAP from $31.00 to $29.00 and set a "neutral" rating on the stock in a research report on Friday, March 7th. Argus upgraded GAP from a "hold" rating to a "buy" rating and set a $27.00 price target on the stock in a research report on Tuesday, January 21st. JPMorgan Chase & Co. decreased their target price on shares of GAP from $30.00 to $25.00 and set an "overweight" rating for the company in a research note on Monday. Finally, Citigroup dropped their price target on GAP from $32.00 to $22.00 and set a "buy" rating on the stock in a research report on Tuesday, April 8th. Five research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $28.31.

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GAP Trading Down 1.6 %

Shares of GAP traded down $0.30 during mid-day trading on Friday, hitting $18.40. 3,163,834 shares of the company's stock traded hands, compared to its average volume of 8,201,718. The business's 50-day moving average price is $21.03 and its 200-day moving average price is $22.38. GAP has a 1 year low of $16.99 and a 1 year high of $30.75. The firm has a market capitalization of $6.93 billion, a P/E ratio of 8.52, a PEG ratio of 0.94 and a beta of 2.15. The company has a quick ratio of 0.84, a current ratio of 1.54 and a debt-to-equity ratio of 0.47.

Hedge Funds Weigh In On GAP

A number of hedge funds have recently made changes to their positions in the business. Polianta Ltd bought a new position in GAP in the 1st quarter worth approximately $1,150,000. Handelsbanken Fonder AB bought a new position in shares of GAP during the first quarter worth $1,107,000. SG Americas Securities LLC purchased a new position in GAP during the first quarter valued at $3,519,000. GAMMA Investing LLC purchased a new stake in GAP in the 1st quarter worth $96,000. Finally, Rhumbline Advisers bought a new position in shares of GAP during the 1st quarter valued at about $12,210,000. Institutional investors own 58.81% of the company's stock.

Insider Activity at GAP

In related news, Director Elisabeth B. Donohue sold 3,539 shares of the business's stock in a transaction that occurred on Wednesday, March 12th. The stock was sold at an average price of $21.04, for a total transaction of $74,460.56. Following the completion of the transaction, the director now directly owns 4,000 shares in the company, valued at approximately $84,160. The trade was a 46.94 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Sarah Gilligan sold 29,813 shares of GAP stock in a transaction that occurred on Friday, March 14th. The shares were sold at an average price of $20.34, for a total transaction of $606,396.42. Following the transaction, 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 disclosure for this sale can be found here. Over the last ninety days, insiders sold 177,495 shares of company stock worth $3,598,459. 31.00% of the stock is owned by company insiders.

GAP Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 30th. Shareholders of record on Wednesday, April 9th will be paid a dividend of $0.165 per share. This is an increase from GAP's previous quarterly dividend of $0.15. This represents a $0.66 dividend on an annualized basis and a dividend yield of 3.59%. The ex-dividend date of this dividend is Wednesday, April 9th. GAP's payout ratio is currently 29.86%.

GAP Company Profile

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.