Jupiter Topco LLC Buys Shares of 107,866 The Gap, Inc. $GAP

Key Points

• Jupiter Topco LLC acquired 107,866 Gap shares during the second quarter, worth approximately $2.02 million. Institutional investors collectively own 58.81% of the company.
• Wall Street sentiment remains cautious, with an average “Hold” rating and a $27.36 price target, despite Goldman Sachs and Bank of America raising their targets to $27.
• Gap exceeded quarterly EPS expectations with $0.52 versus $0.48 forecast, but revenue fell 2% year over year to $3.65 billion. The company also announced a quarterly dividend of $0.175 per share, representing a 3.1% yield.

Jupiter Topco LLC bought a new position in The Gap, Inc. (NYSE:GAP - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 107,866 shares of the company's stock, valued at approximately $2,017,000.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Cullen Frost Bankers Inc. bought a new position in shares of GAP in the 4th quarter worth approximately $26,000. Plato Investment Management Ltd bought a new stake in GAP during the fourth quarter valued at approximately $28,000. Global Retirement Partners LLC purchased a new stake in GAP during the second quarter valued at approximately $29,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in GAP during the second quarter valued at approximately $50,000. Finally, Quantbot Technologies LP bought a new position in GAP in the second quarter worth approximately $73,000. Hedge funds and other institutional investors own 58.81% of the company's stock.

Analyst Upgrades and Downgrades

GAP has been the topic of several analyst reports. The Goldman Sachs Group lifted their price target on shares of GAP from $25.00 to $27.00 and gave the stock a "buy" rating in a research note on Monday. Bank of America raised their target price on GAP from $26.00 to $27.00 and gave the stock a "neutral" rating in a report on Friday, August 28th. JPMorgan Chase & Co. restated a "neutral" rating and set a $27.00 target price (down from $35.00) on shares of GAP in a research note on Friday, May 29th. Morgan Stanley upped their target price on shares of GAP from $21.00 to $23.00 and gave the stock an "equal weight" rating in a report on Friday, August 28th. Finally, Jefferies Financial Group lowered GAP from a "buy" rating to a "hold" rating and cut their price target for the stock from $29.00 to $23.00 in a research note on Wednesday, August 12th. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $27.36.

GAP Stock Up 1.1%

NYSE GAP opened at $22.31 on Friday. The Gap, Inc. has a 12 month low of $18.11 and a 12 month high of $29.36. The company has a current ratio of 1.82, a quick ratio of 1.11 and a debt-to-equity ratio of 0.38. The stock has a market cap of $7.84 billion, a PE ratio of 6.66, a P/E/G ratio of 0.94 and a beta of 2.08. The stock's 50 day moving average is $20.19 and its 200 day moving average is $22.69.

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

GAP Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 7th will be paid a dividend of $0.175 per share. This represents a $0.70 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Wednesday, October 7th. GAP's dividend payout ratio (DPR) is presently 20.90%.

Key Headlines Impacting GAP

Here are the key news stories impacting GAP this week:

• Positive Sentiment: New handbag strategy could expand growth opportunities: Gap is introducing “GapBag” for fall 2026, featuring handbags designed by Reed Krakoff. The move expands the brand into the lucrative accessories market and could increase average customer spending and diversify revenue beyond apparel. Gap introduces GapBag for fall 2026 with handbags by Reed Krakoff
• Positive Sentiment: Momentum factors remain favorable: Zacks highlighted GAP as a strong momentum stock, which may attract technical and quantitative investors after the shares moved above their 50-day average. Why Gap is a strong momentum stock
• Neutral Sentiment: Analyst sentiment is cautious: The Gap received an average “Hold” rating, suggesting Wall Street sees balanced upside and downside rather than a clear catalyst for re-rating. The Gap receives average Hold rating
• Neutral Sentiment: CEO Richard Dickson is scheduled to participate in the Goldman Sachs Global Consumer & Retail Conference on September 14. The event could provide updates on strategy, sales trends and the handbag rollout, but no new financial guidance was announced. Gap to participate in Goldman Sachs conference
• Neutral Sentiment: Gap also announced a New York City youth education partnership with FIT and BroSis. The initiative supports brand goodwill but is unlikely to materially affect near-term earnings. Gap, FIT and BroSis partnership

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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