California State Teachers Retirement System Acquires 53,098 Shares of The Gap, Inc. $GAP

Key Points

• California State Teachers Retirement System increased its Gap holdings by 23.5% in the first quarter, purchasing 53,098 additional shares for a total of 279,201 shares valued at approximately $6.76 million. Institutional investors collectively own 58.81% of GAP.
• Gap reported first-quarter revenue of $3.50 billion and earnings of $0.38 per share, slightly below analyst expectations, while revenue grew 1% year over year. Shares opened at $20.56, near the lower end of their 52-week range.
• The company maintains a quarterly dividend of $0.175 per share, equivalent to a 3.4% annual yield. Analysts hold a consensus “Moderate Buy” rating with an average price target of $27.86, although several firms recently lowered their targets.

California State Teachers Retirement System grew its holdings in The Gap, Inc. (NYSE:GAP - Free Report) by 23.5% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 279,201 shares of the company's stock after purchasing an additional 53,098 shares during the quarter. California State Teachers Retirement System owned approximately 0.08% of GAP worth $6,757,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Ameriprise Financial Inc. boosted its position in GAP by 4.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 4,588,800 shares of the company's stock valued at $98,154,000 after acquiring an additional 180,991 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of GAP by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 4,291,846 shares of the company's stock worth $110,750,000 after purchasing an additional 14,141 shares during the last quarter. LSV Asset Management grew its stake in GAP by 3.6% in the fourth quarter. LSV Asset Management now owns 3,462,702 shares of the company's stock valued at $88,645,000 after purchasing an additional 121,001 shares during the last quarter. Bank of New York Mellon Corp boosted its holdings in shares of GAP by 13.0% in the 4th quarter. Bank of New York Mellon Corp now owns 3,195,934 shares of the company's stock valued at $81,816,000 after buying an additional 368,191 shares in the last quarter. Finally, Miller Howard Investments Inc. NY raised its stake in shares of GAP by 112.2% during the 1st quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company's stock worth $41,237,000 after acquiring an additional 900,855 shares in the last quarter. 58.81% of the stock is currently owned by institutional investors.

GAP Price Performance

Shares of NYSE GAP opened at $20.56 on Thursday. The Gap, Inc. has a 52 week low of $18.11 and a 52 week high of $29.36. The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41. The firm has a market cap of $7.40 billion, a P/E ratio of 8.09, a P/E/G ratio of 1.21 and a beta of 2.05. The business's 50 day moving average price is $20.40 and its 200 day moving average price is $23.67.

GAP (NYSE:GAP - Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The company reported $0.38 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.01). GAP had a net margin of 6.25% and a return on equity of 21.13%. The business had revenue of $3.50 billion during the quarter, compared to analysts' expectations of $3.52 billion. During the same period last year, the company earned $0.51 earnings per share. The firm's revenue was up 1.0% on a year-over-year basis. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, sell-side analysts expect that The Gap, Inc. will post 2.34 earnings per share for the current year.

GAP Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 29th. Stockholders of record on Wednesday, July 8th were paid a $0.175 dividend. The ex-dividend date was Wednesday, July 8th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.4%. GAP's dividend payout ratio is presently 27.56%.

Analysts Set New Price Targets

Several brokerages have weighed in on GAP. Jefferies Financial Group lowered their target price on shares of GAP from $32.00 to $29.00 and set a "buy" rating for the company in a research note on Friday, May 29th. Bank of America reduced their target price on GAP from $29.00 to $26.00 and set a "neutral" rating on the stock in a research report on Friday, May 29th. Morgan Stanley reissued an "equal weight" rating and issued a $21.00 price target on shares of GAP in a report on Monday, July 6th. TD Cowen decreased their price objective on shares of GAP from $32.00 to $26.00 and set a "buy" rating for the company in a research report on Monday, May 18th. Finally, Wells Fargo & Company dropped their target price on shares of GAP from $30.00 to $26.00 and set an "overweight" rating on the stock in a research report on Friday, May 29th. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, GAP presently has a consensus rating of "Moderate Buy" and a consensus price target of $27.86.

GAP Company 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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