BlackRock Inc. Takes Position in The Gap, Inc. $GAP

Key Points

• BlackRock acquired 22.96 million Gap shares worth approximately $428.8 million, giving it a 6.38% stake; institutional investors now own 58.81% of the company.
• Analyst sentiment remains mixed but leans positive, with a consensus “Moderate Buy” rating and an average price target of $26.29, despite several recent target reductions.
• Gap reported slightly weaker-than-expected quarterly results, with $0.38 EPS and $3.50 billion in revenue, while maintaining FY 2026 EPS guidance of $2.30–$2.40 and declaring a quarterly dividend of $0.175 per share.

BlackRock Inc. purchased a new position in shares of The Gap, Inc. (NYSE:GAP - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 22,956,325 shares of the company's stock, valued at approximately $428,824,000. BlackRock Inc. owned approximately 6.38% of GAP at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Pallas Capital Advisors LLC bought a new position in GAP during the 2nd quarter valued at $505,000. Deutsche Bank AG bought a new stake in shares of GAP in the 2nd quarter worth about $1,778,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of GAP in the 2nd quarter valued at about $50,000. Global Retirement Partners LLC acquired a new stake in shares of GAP in the 2nd quarter valued at about $29,000. Finally, Focus Partners Advisor Solutions LLC bought a new position in shares of GAP during the second quarter worth about $548,000. Institutional investors own 58.81% of the company's stock.

Analyst Upgrades and Downgrades

GAP has been the subject of a number of research reports. Barclays reiterated an "equal weight" rating and issued a $20.00 price target (down from $26.00) on shares of GAP in a research note on Tuesday, August 11th. TD Cowen cut their price objective on GAP from $26.00 to $23.00 and set a "buy" rating on the stock in a research note on Tuesday, August 18th. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $27.00 target price (down from $35.00) on shares of GAP in a report on Friday, May 29th. The Goldman Sachs Group decreased their target price on GAP from $28.00 to $25.00 and set a "buy" rating for the company in a research report on Thursday, August 20th. Finally, Weiss Ratings downgraded GAP from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, July 28th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $26.29.

GAP Trading Down 1.0%

NYSE GAP opened at $20.15 on Wednesday. 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 Gap, Inc. has a one year low of $18.11 and a one year high of $29.36. The company has a 50-day simple moving average of $20.01 and a 200-day simple moving average of $22.98. The firm has a market capitalization of $7.25 billion, a PE ratio of 7.93, a price-to-earnings-growth ratio of 1.21 and a beta of 2.05.

GAP (NYSE:GAP - Get Free Report) last released its quarterly earnings data 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). GAP had a return on equity of 21.13% and a net margin of 6.25%.The business had revenue of $3.50 billion for the quarter, compared to analyst estimates of $3.52 billion. During the same quarter last year, the company earned $0.51 EPS. GAP's revenue was up 1.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, equities analysts forecast that The Gap, Inc. will post 2.33 earnings per share for the current year.

GAP Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be given a dividend of $0.175 per share. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Wednesday, October 7th. GAP's dividend payout ratio is presently 27.56%.

GAP Profile

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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