Bank of America Corp DE Makes New Investment in The Gap, Inc. $GAP

Key Points

• Bank of America initiated a GAP position by purchasing 1.62 million shares worth approximately $30.3 million, representing about 0.45% of the retailer. Institutional investors collectively own 58.81% of GAP.
• GAP reported quarterly EPS of $0.52, beating estimates of $0.48, although revenue fell 2% year over year to $3.65 billion. The company maintained fiscal 2026 EPS guidance of $2.35–$2.45.
• GAP declared a quarterly dividend of $0.175, equivalent to $0.70 annually and a 3.3% yield. Analysts have a consensus “Hold” rating with an average price target of $27.07, compared with the stock’s reported price of $21.43.

Bank of America Corp DE bought a new position in The Gap, Inc. (NYSE:GAP - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The fund bought 1,624,464 shares of the company's stock, valued at approximately $30,345,000. Bank of America Corp DE owned about 0.45% of GAP as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in the business. Cullen Frost Bankers Inc. purchased a new stake in GAP during the fourth quarter valued at approximately $26,000. Global Retirement Partners LLC bought a new position in shares of GAP during the 2nd quarter valued at approximately $29,000. EverSource Wealth Advisors LLC raised its holdings in GAP by 22.7% during the 4th quarter. EverSource Wealth Advisors LLC now owns 11,192 shares of the company's stock valued at $287,000 after buying an additional 2,069 shares during the period. Rothschild Investment LLC lifted its position in GAP by 26.9% in the fourth quarter. Rothschild Investment LLC now owns 11,870 shares of the company's stock worth $304,000 after buying an additional 2,518 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in GAP in the second quarter worth $50,000. Institutional investors own 58.81% of the company's stock.

GAP Price Performance

GAP stock opened at $21.43 on Wednesday. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.82 and a quick ratio of 1.11. The stock has a market cap of $7.53 billion, a price-to-earnings ratio of 6.40, a price-to-earnings-growth ratio of 0.89 and a beta of 2.08. The firm has a 50-day moving average of $20.72 and a two-hundred day moving average of $22.09. The Gap, Inc. has a 1 year low of $18.11 and a 1 year high of $29.36.

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

GAP Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 7th will be paid a $0.175 dividend. The ex-dividend date of this dividend is Wednesday, October 7th. This represents a $0.70 dividend on an annualized basis and a yield of 3.3%. GAP's dividend payout ratio is 20.90%.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on GAP. TD Cowen boosted their price objective on shares of GAP from $23.00 to $27.00 and gave the company a "buy" rating in a research report on Friday, August 28th. Evercore set a $20.00 price target on shares of GAP and gave the stock an "in-line" rating in a research note on Friday, May 29th. UBS Group upped their price target on shares of GAP from $40.00 to $42.00 and gave the company a "buy" rating in a report on Friday, August 28th. Jefferies Financial Group lowered shares of GAP from a "buy" rating to a "hold" rating and reduced their price objective for the stock from $29.00 to $23.00 in a research report on Wednesday, August 12th. Finally, Bank of America raised their price objective on shares of GAP from $26.00 to $27.00 and gave the stock a "neutral" rating in a research note on Friday, August 28th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, GAP presently has a consensus rating of "Hold" and a consensus price target of $27.07.

Key Headlines Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Gap announced a multi-year “fashiontainment” partnership with emerging boy band JYT, also known as Just Your Type, Wexler Records and Republic Records. The collaboration will include original content, live experiences, a clothing collection and a docuseries, creating additional opportunities to reach younger consumers and connect fashion with music fandom. Gap Inc. Debuts First Fashiontainment Partnership with Emerging Boy Band JYT
• Positive Sentiment: The JYT campaign represents Gap’s first major entertainment partnership and is intended to generate social engagement, cultural relevance and potential demand for Gap apparel through music-led marketing. Gap rolls out Fashiontainment strategy with boy band collaboration
• Positive Sentiment: Gap is expanding its denim offering with Japanese denim developed with French brand A.P.C. The premium collaboration could strengthen Gap’s fashion credentials, though investors will watch whether it drives meaningful sales beyond the initial launch. Gap Now Sells Japanese Denim, with a Little Help from a Beloved French Jeans Brand
• Neutral Sentiment: Separate Zacks commentary identifies GAP as both a long-term value stock and a highly ranked momentum stock, supporting investor interest based on valuation and recent performance rather than a new fundamental earnings catalyst. Why Gap is a Top Value Stock for the Long-Term

GAP 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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