Gap Inc (NYSE:GPS) Raises Dividend to $0.24 Per Share

Gap Inc (NYSE:GPS) announced a quarterly dividend on Wednesday, August 14th, Zacks reports. Investors of record on Wednesday, October 9th will be paid a dividend of 0.243 per share by the apparel retailer on Wednesday, October 30th. This represents a $0.97 dividend on an annualized basis and a dividend yield of 6.33%. The ex-dividend date of this dividend is Tuesday, October 8th. This is a positive change from GAP’s previous quarterly dividend of $0.24.

GAP has raised its dividend by an average of 1.7% annually over the last three years. GAP has a payout ratio of 37.5% meaning its dividend is sufficiently covered by earnings. Analysts expect GAP to earn $2.13 per share next year, which means the company should continue to be able to cover its $0.97 annual dividend with an expected future payout ratio of 45.5%.

GPS stock opened at $15.36 on Friday. The business’s 50-day moving average price is $18.30 and its two-hundred day moving average price is $22.41. The company has a current ratio of 1.49, a quick ratio of 0.70 and a debt-to-equity ratio of 1.92. The firm has a market cap of $6.78 billion, a PE ratio of 5.93, a P/E/G ratio of 0.97 and a beta of 0.71. GAP has a 1-year low of $15.22 and a 1-year high of $32.98.

GAP (NYSE:GPS) last posted its earnings results on Thursday, May 30th. The apparel retailer reported $0.24 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.31 by ($0.07). The business had revenue of $3.71 billion for the quarter, compared to the consensus estimate of $3.78 billion. GAP had a return on equity of 26.73% and a net margin of 6.46%. The business’s revenue was down 2.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.42 earnings per share. On average, analysts forecast that GAP will post 2.05 earnings per share for the current year.

Several research firms have weighed in on GPS. TheStreet lowered GAP from a “b-” rating to a “c+” rating in a report on Thursday, June 13th. JPMorgan Chase & Co. reduced their target price on GAP from $24.00 to $17.00 and set an “underweight” rating on the stock in a report on Friday, May 31st. Wedbush reduced their target price on GAP from $23.00 to $19.00 and set a “neutral” rating on the stock in a report on Friday, May 31st. Nomura cut their price target on GAP from $22.00 to $32.00 and set a “neutral” rating on the stock in a report on Friday, May 31st. Finally, Argus restated a “hold” rating on shares of GAP in a report on Tuesday, June 4th. Five research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and two have assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of $24.73.

In related news, CEO Mcneil S. Fiske, Jr. sold 16,183 shares of the company’s stock in a transaction dated Friday, June 21st. The stock was sold at an average price of $18.00, for a total transaction of $291,294.00. Following the sale, the chief executive officer now owns 32,500 shares in the company, valued at $585,000. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 37.60% of the company’s stock.

GAP Company Profile

The Gap, Inc operates as an apparel retail company worldwide. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Hill City brands. Its products include denim, tees, button-downs, khakis, and other products; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities to women and girls.

Read More: How are Outstanding Shares Different from Authorized Shares?

Dividend History for GAP (NYSE:GPS)

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