Canada Pension Plan Investment Board Takes $3.74 Million Position in The Gap, Inc. $GAP

Key Points

• Canada Pension Plan Investment Board acquired 200,300 GAP shares worth approximately $3.74 million, representing about 0.06% of the company. Institutional investors collectively own 58.81% of GAP.
• GAP’s quarterly adjusted EPS of $0.52 exceeded the $0.48 consensus estimate, and management raised fiscal 2026 EPS guidance to $2.35–$2.45. However, revenue declined 2% year over year to $3.65 billion, missing expectations, with Old Navy and Athleta remaining under pressure.
• Analysts maintain a consensus “Hold” rating with a $27.21 price target, while the company declared a quarterly dividend of $0.175 per share, equivalent to a 3.0% annualized yield.

Canada Pension Plan Investment Board acquired a new position in The Gap, Inc. (NYSE:GAP - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund acquired 200,300 shares of the company's stock, valued at approximately $3,742,000. Canada Pension Plan Investment Board owned approximately 0.06% of GAP as of its most recent filing with the SEC.

Other institutional investors have also modified their holdings of the company. Amundi bought a new position in GAP during the first quarter valued at about $259,000. EverSource Wealth Advisors LLC raised 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 acquiring an additional 4,483 shares in the last quarter. Jump Financial LLC bought a new stake in GAP in the second quarter worth about $612,000. California State Teachers Retirement System lifted its holdings in GAP by 0.8% in the 2nd quarter. California State Teachers Retirement System now owns 226,506 shares of the company's stock valued at $4,940,000 after acquiring an additional 1,703 shares during the last quarter. Finally, Ameriprise Financial Inc. lifted its holdings in GAP by 42.7% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company's stock valued at $96,134,000 after acquiring an additional 1,318,322 shares during the last quarter. Institutional investors and hedge funds own 58.81% of the company's stock.

Key Headlines Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Quarterly earnings beat expectations: Adjusted EPS was $0.52, exceeding the $0.48 consensus estimate. Gross margin expanded 20 basis points to 41.4%, helping Gap outperform operating-profit expectations despite weaker sales. Gap names Michael Francis Old Navy CEO as quarterly profit beats estimates
• Positive Sentiment: Profit outlook raised: The company now expects fiscal 2026 EPS of $2.35 to $2.45, above the roughly $2.33 analyst consensus. Management cited continued momentum at the Gap brand, margin discipline and strength at Banana Republic. Gap lifts annual profit forecast on strength of namesake brand
• Positive Sentiment: Old Navy leadership reset: Michael Francis, a retail veteran with experience at Walmart and Target, will become Old Navy’s president and CEO on November 2, replacing Haio Barbeito. Investors appear hopeful that Francis can improve the company’s largest brand. Gap shares jump after Old Navy brings in new CEO to revive brand
• Positive Sentiment: Analyst support increased: TD Cowen and BTIG raised their price targets to $27 and assigned “buy” ratings. Bank of America also raised its target to $27, while Morgan Stanley lifted its target to $23 but retained an “equal weight” rating.
• Neutral Sentiment: Sales remained soft: Second-quarter revenue fell 2% year over year to $3.65 billion, below the $3.69 billion consensus, while comparable sales declined 1%. Full-year revenue guidance of about $15.6 billion is slightly below analyst expectations. Gap Inc. Reports Second Quarter Fiscal 2026 Results
• Negative Sentiment: Brand performance was uneven: Old Navy reported sluggish comparable sales, and Athleta continued to face pressure. The need for a leadership change underscores execution risks even as Gap and Banana Republic show stronger momentum.

Wall Street Analysts Forecast Growth

GAP has been the subject of several research reports. Evercore set a $20.00 price objective on shares of GAP and gave the company an "in-line" rating in a research report on Friday, May 29th. UBS Group raised their target price on shares of GAP from $40.00 to $42.00 and gave the stock a "buy" rating in a report on Friday. Weiss Ratings lowered shares of GAP from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, July 28th. BTIG Research upped their price target on GAP from $26.00 to $27.00 and gave the company a "buy" rating in a report on Friday. Finally, Wells Fargo & Company increased their price objective on GAP from $22.00 to $23.00 and gave the company a "cautious" rating in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $27.21.

GAP Price Performance

Shares of NYSE:GAP opened at $23.48 on Monday. The firm has a 50 day simple moving average of $20.06 and a 200 day simple moving average of $22.84. The Gap, Inc. has a 52 week low of $18.11 and a 52 week high of $29.36. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.11 and a current ratio of 1.82. The company has a market cap of $8.45 billion, a PE ratio of 7.01, a price-to-earnings-growth ratio of 1.36 and a beta of 2.05.

GAP (NYSE:GAP - Get Free Report) last posted its quarterly earnings data on Thursday, August 27th. The company reported $0.52 earnings per share for the quarter, topping 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 for the quarter, compared to analysts' expectations of $3.69 billion. During the same period in the previous year, the company posted $0.57 EPS. The company's quarterly revenue was down 2.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. As a group, research analysts expect that The Gap, Inc. will post 2.38 earnings per share for the current year.

GAP Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be issued a dividend of $0.175 per share. The ex-dividend date is Wednesday, October 7th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.0%. GAP's payout ratio is currently 20.90%.

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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