LSV Asset Management Makes New $32.66 Million Investment in The Gap, Inc. (NYSE:GAP)

Key Points

• LSV Asset Management has acquired a new stake in The Gap, Inc., purchasing approximately 1,584,436 shares valued at about $32.7 million, which represents 0.42% of the company's stock.
• The company's recent earnings report showed earnings per share of $0.51, exceeding analysts' expectations of $0.44, with a quarterly revenue of $3.46 billion.
• The Gap, Inc. announced a quarterly dividend of $0.165 per share, reflecting an annualized dividend yield of 3.5% and a payout ratio of 28.57%.

LSV Asset Management acquired a new stake in shares of The Gap, Inc. (NYSE:GAP - Free Report) in the first quarter, according to the company in its most recent filing with the SEC. The firm acquired 1,584,436 shares of the company's stock, valued at approximately $32,655,000. LSV Asset Management owned about 0.42% of GAP as of its most recent filing with the SEC.

Other institutional investors have also modified their holdings of the company. Neo Ivy Capital Management purchased a new stake in GAP during the 1st quarter worth approximately $322,000. KLP Kapitalforvaltning AS acquired a new position in GAP in the first quarter valued at approximately $1,057,000. Teachers Retirement System of The State of Kentucky acquired a new position in GAP in the first quarter valued at approximately $1,418,000. New York State Common Retirement Fund acquired a new position in GAP in the first quarter valued at approximately $2,351,000. Finally, Nisa Investment Advisors LLC acquired a new position in GAP in the first quarter valued at approximately $832,000. Hedge funds and other institutional investors own 58.81% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have commented on GAP. UBS Group decreased their price target on GAP from $29.00 to $27.00 and set a "neutral" rating on the stock in a research note on Friday, May 30th. Wells Fargo & Company cut GAP from an "overweight" rating to an "equal weight" rating and decreased their price target for the stock from $30.00 to $24.00 in a research note on Wednesday, April 30th. Barclays lifted their target price on GAP from $26.00 to $33.00 and gave the company an "overweight" rating in a report on Tuesday, May 27th. Telsey Advisory Group reiterated a "market perform" rating and issued a $26.00 target price on shares of GAP in a report on Friday, May 30th. Finally, Evercore ISI decreased their target price on GAP from $27.00 to $24.00 and set an "outperform" rating for the company in a report on Wednesday, July 30th. Eight equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $27.93.

GAP Stock Up 2.8%

NYSE GAP traded up $0.55 during trading hours on Wednesday, hitting $20.04. The company had a trading volume of 6,835,057 shares, compared to its average volume of 8,159,183. The firm's 50 day moving average is $21.59 and its 200 day moving average is $22.06. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.71 and a quick ratio of 0.98. The company has a market capitalization of $7.55 billion, a price-to-earnings ratio of 8.68, a P/E/G ratio of 2.13 and a beta of 2.15. The Gap, Inc. has a fifty-two week low of $16.99 and a fifty-two week high of $29.29.

GAP (NYSE:GAP - Get Free Report) last issued its earnings results on Thursday, May 29th. The company reported $0.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.44 by $0.07. The firm had revenue of $3.46 billion for the quarter, compared to analysts' expectations of $3.41 billion. GAP had a net margin of 5.80% and a return on equity of 27.86%. GAP's revenue was up 2.2% on a year-over-year basis. During the same quarter last year, the company posted $0.41 earnings per share. Sell-side analysts anticipate that The Gap, Inc. will post 2.02 earnings per share for the current fiscal year.

GAP Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 30th. Shareholders of record on Wednesday, July 9th were given a dividend of $0.165 per share. This represents a $0.66 annualized dividend and a yield of 3.3%. The ex-dividend date was Wednesday, July 9th. GAP's payout ratio is presently 28.57%.

Insiders Place Their Bets

In other news, CEO Mark Breitbard sold 51,385 shares of the business's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $27.00, for a total transaction of $1,387,395.00. Following the transaction, the chief executive officer directly owned 123,985 shares in the company, valued at $3,347,595. The trade was a 29.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 30.56% of the company's stock.

GAP Profile

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections.