225,718 Shares in The Gap, Inc. $GAP Bought by Engineers Gate Manager LP

Key Points

• Engineers Gate Manager LP purchased 225,718 Gap shares worth approximately $4.2 million, giving it a 0.06% stake. Institutional investors collectively own 58.81% of the company.
• Gap recently beat quarterly EPS expectations with $0.52 versus $0.48, although revenue fell 2% year over year to $3.65 billion. The stock trades at roughly 6.4 times earnings and offers a 3.2% dividend yield.
• Analyst views remain mixed: the stock has an overall “Hold” rating and an average $27.07 price target, while estimates point to stronger earnings in some future periods but reductions in others.

Engineers Gate Manager LP bought a new stake in shares of The Gap, Inc. (NYSE:GAP - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm bought 225,718 shares of the company's stock, valued at approximately $4,216,000. Engineers Gate Manager LP owned approximately 0.06% of GAP as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also bought and sold shares of the company. Cullen Frost Bankers Inc. bought a new stake in GAP in the 4th quarter worth approximately $26,000. Global Retirement Partners LLC bought a new stake in GAP during the 2nd quarter valued at $29,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of GAP in the second quarter worth $50,000. Quantbot Technologies LP purchased a new stake in GAP in the 2nd quarter worth approximately $73,000. Finally, Westpac Banking Corp acquired a new position in shares of GAP during the 2nd quarter worth about $103,000. Hedge funds and other institutional investors own 58.81% of the company's stock.

Key GAP News

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Analyst upgrade: BMO Capital Markets upgraded GAP to “hold,” improving the stock’s rating outlook and potentially supporting investor sentiment. The shares remain well below their 12-month high, while their low valuation—about 6.4 times earnings—may attract value-oriented investors. Zacks analyst rating report
• Positive Sentiment: Brand and product momentum: GAP is highlighting its handbag business through a Reed Krakoff collaboration and a Rockefeller Center takeover during New York Fashion Week. The initiative could increase visibility for the brand and support growth in accessories, an important area for improving sales and margins. WWD article on Gap handbags and Reed Krakoff
• Neutral Sentiment: Mixed long-term estimates: Zacks Research raised its FY2027 EPS estimate to $2.41 from $2.31 and its FY2028 estimate to $2.62 from $2.55. It also increased estimates for Q4 FY2027, Q3 FY2028 and Q4 FY2028, suggesting improving expectations for select periods.
• Negative Sentiment: Near-term estimate reductions: Zacks lowered its Q1 and Q2 FY2029 EPS forecasts and trimmed FY2029 estimates slightly to $2.81 from $2.82. It also reduced its Q2 FY2028 estimate, indicating some uncertainty about future earnings consistency.

GAP Price Performance

GAP stock opened at $21.57 on Friday. The business's fifty day moving average price is $20.51 and its 200 day moving average price is $22.47. The Gap, Inc. has a 12-month low of $18.11 and a 12-month high of $29.36. The company has a current ratio of 1.82, a quick ratio of 1.11 and a debt-to-equity ratio of 0.38. The company has a market capitalization of $7.58 billion, a PE ratio of 6.44, a P/E/G ratio of 0.91 and a beta of 2.08.

GAP (NYSE:GAP - Get Free Report) last announced its earnings results on Thursday, August 27th. The company reported $0.52 EPS for the quarter, beating analysts' consensus estimates of $0.48 by $0.04. The company had revenue of $3.65 billion during the quarter, compared to analysts' expectations of $3.69 billion. GAP had a return on equity of 19.72% and a net margin of 8.14%.GAP's revenue for the quarter was down 2.0% on a year-over-year basis. During the same period last year, the business posted $0.57 EPS. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. On average, sell-side analysts anticipate that The Gap, Inc. will post 2.41 EPS for the current year.

GAP Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 7th will be paid a dividend of $0.175 per share. This represents a $0.70 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend is Wednesday, October 7th. GAP's dividend payout ratio is presently 20.90%.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. BMO Capital Markets began coverage on shares of GAP in a research note on Tuesday. They set a "market perform" rating and a $23.00 target price on the stock. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $27.00 price objective (down from $35.00) on shares of GAP in a report on Friday, May 29th. The Goldman Sachs Group raised their target price on GAP from $25.00 to $27.00 and gave the stock a "buy" rating in a research note on Monday, August 31st. Jefferies Financial Group lowered GAP from a "buy" rating to a "hold" rating and decreased their price target for the company from $29.00 to $23.00 in a research note on Wednesday, August 12th. Finally, TD Cowen raised their price objective on GAP from $23.00 to $27.00 and gave the stock a "buy" rating in a research report on Friday, August 28th. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $27.07.

GAP Company Profile

Gap Inc is an American specialty apparel retailer founded in 1969 by Donald and Doris Fisher in San Francisco, California. The company operates a portfolio of consumer brands focused on clothing, accessories and personal-care products for women, men and children.

Its principal brands include Old Navy, Gap, Banana Republic and Athleta. Products are sold through company-operated stores, franchise locations and digital channels, with offerings spanning casual apparel, denim, activewear, accessories and lifestyle products.

Gap Inc serves customers in North America and selected international markets through its retail and e-commerce operations.

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