Quantitative Investment Management LLC Makes New Investment in The Gap, Inc. $GAP

Key Points

• Quantitative Investment Management initiated a 142,290-share position in Gap, valued at approximately $2.66 million; institutional investors collectively own 58.81% of the company.
• Gap exceeded quarterly EPS expectations, reporting $0.52 versus $0.48 forecast, but revenue fell 2% year over year to $3.65 billion and missed estimates. Management guided to fiscal 2026 EPS of $2.35–$2.45.
• The company declared a quarterly dividend of $0.175 per share, representing a 3.0% annualized yield, while analysts maintain a consensus “Hold” rating and a $27.21 price target.

Quantitative Investment Management LLC purchased a new stake in shares of The Gap, Inc. (NYSE:GAP - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 142,290 shares of the company's stock, valued at approximately $2,657,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Cullen Frost Bankers Inc. purchased a new position in shares of GAP in the fourth quarter worth about $26,000. Plato Investment Management Ltd purchased a new stake in GAP during the 4th quarter valued at about $28,000. Global Retirement Partners LLC bought a new position in GAP during the 2nd quarter worth approximately $29,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in GAP during the 2nd quarter worth approximately $50,000. Finally, Quantbot Technologies LP purchased a new position in GAP in the 2nd quarter worth approximately $73,000. 58.81% of the stock is owned by institutional investors.

GAP Stock Performance

NYSE GAP opened at $23.48 on Monday. The stock has a market cap of $8.45 billion, a P/E ratio of 7.01, a price-to-earnings-growth ratio of 1.36 and a beta of 2.05. The Gap, Inc. has a fifty-two week low of $18.11 and a fifty-two week high of $29.36. The stock has a 50 day simple moving average of $20.06 and a two-hundred day simple moving average of $22.84. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.11 and a current ratio of 1.82.

GAP (NYSE:GAP - Get Free Report) last posted its earnings results on Thursday, August 27th. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.04. The firm had revenue of $3.65 billion for the quarter, compared to analysts' expectations of $3.69 billion. GAP had a return on equity of 19.72% and a net margin of 8.14%.The business's revenue was down 2.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.57 earnings per share. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. On average, analysts forecast that The Gap, Inc. will post 2.38 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. Investors of record on Wednesday, October 7th will be given a dividend of $0.175 per share. The ex-dividend date is Wednesday, October 7th. This represents a $0.70 annualized dividend and a dividend yield of 3.0%. GAP's payout ratio is currently 20.90%.

Key Stories 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

Several brokerages have weighed in on GAP. Wells Fargo & Company boosted their price objective on GAP from $22.00 to $23.00 and gave the company a "cautious" rating in a research report on Friday. Morgan Stanley lifted their target price on shares of GAP from $21.00 to $23.00 and gave the stock an "equal weight" rating in a research note on Friday. The Goldman Sachs Group lowered their price target on shares of GAP from $28.00 to $25.00 and set a "buy" rating for the company in a report on Thursday, August 20th. Jefferies Financial Group cut shares of GAP from a "buy" rating to a "hold" rating and dropped their price target for the company from $29.00 to $23.00 in a research report on Wednesday, August 12th. Finally, BTIG Research raised their price target on shares of GAP from $26.00 to $27.00 and gave the stock a "buy" rating in a report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $27.21.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source