Dark Forest Capital Management LP Takes $4.52 Million Position in The Gap, Inc. $GAP

Key Points

• Dark Forest Capital Management LP acquired 219,187 shares of The Gap, Inc. valued at approximately $4.5 million in the first quarter, increasing its stake to 0.06%.
• Major hedge funds have made significant investments in GAP, including Dodge & Cox, which purchased shares worth about $592 million.
• The Gap, Inc. reported $0.57 EPS for the quarter, exceeding estimates, and also announced a quarterly dividend of $0.165 per share, representing a yield of 3.0%.

Dark Forest Capital Management LP purchased a new stake in The Gap, Inc. (NYSE:GAP - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 219,187 shares of the company's stock, valued at approximately $4,517,000. Dark Forest Capital Management LP owned 0.06% of GAP at the end of the most recent quarter.

Several other large investors also recently made changes to their positions in the company. Caisse DE Depot ET Placement DU Quebec acquired a new stake in shares of GAP in the first quarter valued at approximately $7,207,000. Corebridge Financial Inc. bought a new position in shares of GAP in the first quarter valued at approximately $5,062,000. Dodge & Cox bought a new position in shares of GAP in the first quarter valued at approximately $592,222,000. Ameriprise Financial Inc. bought a new position in shares of GAP in the first quarter valued at approximately $63,674,000. Finally, Quantbot Technologies LP bought a new position in shares of GAP in the first quarter valued at approximately $1,473,000. Institutional investors and hedge funds own 58.81% of the company's stock.

Insider Transactions at GAP

In other GAP news, Director William Sydney Fisher sold 243,064 shares of the stock in a transaction that occurred on Thursday, September 4th. The shares were sold at an average price of $23.82, for a total value of $5,789,784.48. Following the completion of the sale, the director owned 3,453,453 shares in the company, valued at $82,261,250.46. This represents a 6.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 31.00% of the stock is currently owned by insiders.

GAP Trading Down 0.6%

GAP stock traded down $0.15 during midday trading on Friday, reaching $23.78. The stock had a trading volume of 15,511,626 shares, compared to its average volume of 10,840,834. The firm's fifty day simple moving average is $21.22 and its two-hundred day simple moving average is $21.71. The Gap, Inc. has a twelve month low of $16.99 and a twelve month high of $29.29. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.68 and a quick ratio of 0.96. The firm has a market cap of $8.83 billion, a price-to-earnings ratio of 10.16, a PEG ratio of 2.68 and a beta of 2.09.

GAP (NYSE:GAP - Get Free Report) last posted its quarterly earnings data on Thursday, August 28th. The company reported $0.57 EPS for the quarter, topping analysts' consensus estimates of $0.55 by $0.02. GAP had a net margin of 5.86% and a return on equity of 27.04%. The firm had revenue of $3.73 billion during the quarter, compared to analyst estimates of $3.73 billion. During the same quarter last year, the business posted $0.54 EPS. The company's revenue was up .1% on a year-over-year basis. GAP has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities analysts anticipate that The Gap, Inc. will post 2.02 EPS for the current fiscal year.

GAP Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 29th. Shareholders of record on Wednesday, October 8th will be given a $0.165 dividend. The ex-dividend date is Wednesday, October 8th. This represents a $0.66 dividend on an annualized basis and a yield of 2.8%. GAP's dividend payout ratio is presently 28.21%.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. Citigroup reiterated a "neutral" rating and issued a $22.00 price objective (down from $30.00) on shares of GAP in a report on Wednesday, August 20th. Wells Fargo & Company decreased their price objective on shares of GAP from $24.00 to $22.00 and set an "equal weight" rating for the company in a report on Friday, August 29th. Wall Street Zen cut shares of GAP from a "buy" rating to a "hold" rating in a report on Sunday, August 3rd. Jefferies Financial Group restated a "hold" rating and issued a $29.00 price target (up previously from $26.00) on shares of GAP in a research report on Wednesday, May 21st. Finally, UBS Group decreased their price target on shares of GAP from $27.00 to $23.00 and set a "neutral" rating on the stock in a research report on Friday, August 22nd. Six equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $25.87.

GAP 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.