The Gap, Inc. (NYSE:GAP) Announces Dividend Increase – $0.18 Per Share

The Gap, Inc. (NYSE:GAP) announced a quarterly dividend on Tuesday, February 24th. Investors of record on Wednesday, April 8th will be paid a dividend of 0.175 per share on Wednesday, April 29th. This represents a c) annualized dividend and a yield of 2.5%. The ex-dividend date is Wednesday, April 8th. This is a 6.1% increase from GAP’s previous quarterly dividend of $0.17.

GAP has decreased its dividend by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 1 years. GAP has a payout ratio of 26.5% meaning its dividend is sufficiently covered by earnings. Analysts expect GAP to earn $2.14 per share next year, which means the company should continue to be able to cover its $0.66 annual dividend with an expected future payout ratio of 30.8%.

GAP Stock Performance

Shares of NYSE GAP traded up $0.24 during midday trading on Wednesday, hitting $27.49. 2,058,199 shares of the company’s stock were exchanged, compared to its average volume of 7,089,271. GAP has a 12 month low of $16.99 and a 12 month high of $29.36. The firm has a market capitalization of $10.22 billion, a PE ratio of 12.29, a price-to-earnings-growth ratio of 2.80 and a beta of 2.32. The company’s 50 day moving average price is $27.23 and its 200 day moving average price is $24.61. The company has a quick ratio of 0.97, a current ratio of 1.72 and a debt-to-equity ratio of 0.41.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on GAP. Jefferies Financial Group upgraded GAP from a “hold” rating to a “buy” rating and raised their price objective for the company from $22.00 to $30.00 in a research report on Friday, November 14th. Zacks Research cut shares of GAP from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 2nd. JPMorgan Chase & Co. lifted their price objective on GAP from $32.00 to $36.00 and gave the company an “overweight” rating in a report on Friday, November 21st. BTIG Research lifted their price objective on shares of GAP from $30.00 to $31.00 and gave the stock a “buy” rating in a research report on Friday, November 21st. Finally, Robert W. Baird set a $33.00 price objective on shares of GAP and gave the stock an “outperform” rating in a report on Wednesday, December 17th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $30.38.

GAP Company Profile

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.