Gap (GPS) Declares $0.15 Dividend

Gap said on March 2, 2023 that its board of directors declared a regular quarterly dividend of $0.15 per share ($0.60 annualized). Previously, the company paid $0.15 per share.

Shares must be purchased before the ex-div date of April 4, 2023 to qualify for the dividend. Shareholders of record as of April 5, 2023 will receive the payment on April 26, 2023.

At the current share price of $12.77 / share, the stock's dividend yield is 4.70%. Looking back five years and taking a sample every week, the average dividend yield has been 4.05%, the lowest has been 1.32%, and the highest has been 7.16%. The standard deviation of yields is 1.45 (n=179).

The current dividend yield is 0.44 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 3.98. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is -0.38%.

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Analyst Price Forecast Suggests 4.17% Downside

As of March 5, 2023, the average one-year price target for Gap is $12.24. The forecasts range from a low of $7.07 to a high of $18.90. The average price target represents a decrease of 4.17% from its latest reported closing price of $12.77.

The projected annual revenue for Gap is $15,893MM, a decrease of 0.03%. The projected annual non-GAAP EPS is -$0.12.

What is the Fund Sentiment?

There are 720 funds or institutions reporting positions in Gap. This is unchanged over the last quarter. Average portfolio weight of all funds dedicated to GPS is 0.12%, an increase of 8.36%. Total shares owned by institutions increased in the last three months by 1.95% to 271,383K shares. The put/call ratio of GPS is 1.61, indicating a bearish outlook.

What are large shareholders doing?

Dodge & Cox holds 37,980K shares representing 10.40% ownership of the company. In it's prior filing, the firm reported owning 38,268K shares, representing a decrease of 0.76%. The firm increased its portfolio allocation in GPS by 23.41% over the last quarter.

DODGX - Dodge & Cox Stock Fund holds 26,632K shares representing 7.30% ownership of the company. No change in the last quarter.

Pzena Investment Management holds 10,858K shares representing 2.97% ownership of the company. In it's prior filing, the firm reported owning 11,738K shares, representing a decrease of 8.11%. The firm increased its portfolio allocation in GPS by 12.72% over the last quarter.

Arrowstreet Capital, Limited Partnership holds 7,303K shares representing 2.00% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,230K shares representing 1.98% ownership of the company. In it's prior filing, the firm reported owning 7,819K shares, representing a decrease of 8.15%. The firm increased its portfolio allocation in GPS by 17.32% over the last quarter.

Gap Background Information
(This description is provided by the company.)

Gap Inc., a collection of purpose-led lifestyle brands, is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Janie and Jack brands. Fiscal year 2019 net sales were $16.4 billion. Gap Inc. products are available for purchase worldwide through company-operated stores, franchise stores, and e-commerce sites.

This story originally appeared on Fintel.