Bank of New York Mellon Corp Buys 368,191 Shares of The Gap, Inc. $GAP

Key Points

• Bank of New York Mellon boosted its GAP stake by 13% in the fourth quarter, buying 368,191 additional shares and ending with 3.20 million shares valued at about $81.8 million.
• GAP’s latest quarter missed earnings and revenue estimates, reporting $0.38 EPS on $3.50 billion in revenue, and the company also cut its sales outlook after the miss.
• Analysts remain mixed but generally positive, with a Moderate Buy consensus and an average price target of $28.71, while GAP stock recently traded down around 1.2% at $21.29.

Bank of New York Mellon Corp increased its stake in shares of The Gap, Inc. (NYSE:GAP - Free Report) by 13.0% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,195,934 shares of the company's stock after buying an additional 368,191 shares during the quarter. Bank of New York Mellon Corp owned 0.86% of GAP worth $81,816,000 at the end of the most recent quarter.

Other institutional investors have also bought and sold shares of the company. Cullen Frost Bankers Inc. purchased a new position in GAP in the fourth quarter worth $26,000. Plato Investment Management Ltd purchased a new position in GAP in the fourth quarter worth $28,000. V Square Quantitative Management LLC purchased a new position in GAP in the fourth quarter worth $31,000. EverSource Wealth Advisors LLC boosted its position in GAP by 177.0% in the second quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company's stock worth $153,000 after purchasing an additional 4,483 shares during the last quarter. Finally, Transcend Capital Advisors LLC purchased a new position in GAP in the fourth quarter worth $238,000. Institutional investors own 58.81% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have weighed in on GAP. Weiss Ratings raised GAP from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, March 25th. TD Cowen cut their price objective on GAP from $32.00 to $26.00 and set a "buy" rating on the stock in a research report on Monday, May 18th. The Goldman Sachs Group dropped their price target on GAP from $32.00 to $28.00 and set a "buy" rating on the stock in a research report on Friday, May 29th. Citigroup increased their price target on GAP from $25.00 to $27.00 and gave the stock a "neutral" rating in a research note on Friday, March 6th. Finally, JPMorgan Chase & Co. reiterated a "neutral" rating and set a $27.00 price target (down from $35.00) on shares of GAP in a research note on Friday, May 29th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, GAP presently has a consensus rating of "Moderate Buy" and an average price target of $28.71.

GAP Stock Down 1.2%

GAP stock opened at $21.29 on Tuesday. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.08 and a current ratio of 1.81. The company has a market capitalization of $7.67 billion, a price-to-earnings ratio of 8.38, a PEG ratio of 1.27 and a beta of 2.03. The Gap, Inc. has a fifty-two week low of $18.68 and a fifty-two week high of $29.36. The stock has a fifty day moving average of $23.80 and a 200-day moving average of $25.55.

GAP (NYSE:GAP - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.01). The firm had revenue of $3.50 billion for the quarter, compared to the consensus estimate of $3.52 billion. GAP had a return on equity of 21.13% and a net margin of 6.25%.The firm's revenue was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.51 EPS. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. As a group, equities research analysts predict that The Gap, Inc. will post 2.34 earnings per share for the current year.

GAP Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 29th. Investors of record on Wednesday, July 8th will be issued a dividend of $0.175 per share. The ex-dividend date of this dividend is Wednesday, July 8th. This represents a $0.70 dividend on an annualized basis and a yield of 3.3%. GAP's dividend payout ratio is 27.56%.

Insider Buying and Selling at GAP

In related news, insider Sarah Gilligan sold 69,912 shares of the stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $25.00, for a total transaction of $1,747,800.00. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, major shareholder John J. Fisher sold 300,000 shares of the stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $25.40, for a total value of $7,620,000.00. Following the sale, the insider directly owned 446,781 shares in the company, valued at $11,348,237.40. This trade represents a 40.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 923,098 shares of company stock worth $22,648,158 in the last three months. 31.00% of the stock is currently owned by corporate insiders.

About GAP

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.

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