GAP Sees Unusually Large Options Volume (NYSE:GAP)

Key Points

• Unusual options activity: Investors purchased 10,046 GAP put options Tuesday, about 24% above the average volume of 8,129, signaling increased downside-positioning interest.
• Mixed quarterly results: GAP reported $0.38 in quarterly EPS and $3.50 billion in revenue, slightly missing analyst expectations, while revenue rose 1% year over year. Management guided fiscal 2026 EPS to $2.30–$2.40.
• Stock and analyst outlook: Shares closed at $20.15, near the 52-week low, while analysts maintained a “Moderate Buy” consensus with an average price target of $26.29. GAP also declared a quarterly dividend of $0.175 per share, representing a 3.5% annualized yield.

The Gap, Inc. (NYSE:GAP - Get Free Report) was the target of some unusual options trading on Tuesday. Investors acquired 10,046 put options on the company. This is an increase of 24% compared to the average volume of 8,129 put options.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Amundi acquired a new position in shares of GAP in the first quarter worth about $259,000. EverSource Wealth Advisors LLC increased its stake in shares of GAP by 177.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company's stock valued at $153,000 after purchasing an additional 4,483 shares in the last quarter. Jump Financial LLC purchased a new position in shares of GAP in the 2nd quarter valued at about $612,000. California State Teachers Retirement System raised 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 worth $4,940,000 after purchasing an additional 1,703 shares during the period. Finally, Ameriprise Financial Inc. raised 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 worth $96,134,000 after purchasing an additional 1,318,322 shares during the period. Hedge funds and other institutional investors own 58.81% of the company's stock.

GAP Stock Performance

GAP stock traded down $0.21 during trading on Tuesday, hitting $20.15. 2,141,475 shares of the company traded hands, compared to its average volume of 7,614,716. GAP has a 1 year low of $18.11 and a 1 year high of $29.36. The company has a market cap of $7.25 billion, a PE ratio of 7.93, a P/E/G ratio of 1.17 and a beta of 2.05. The stock's 50-day simple moving average is $20.04 and its 200 day simple moving average is $23.04. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.81 and a quick ratio of 1.08.

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). The company had revenue of $3.50 billion during the quarter, compared to analysts' expectations of $3.52 billion. GAP had a return on equity of 21.13% and a net margin of 6.25%.The company's revenue for the quarter was up 1.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.51 EPS. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. On average, equities analysts expect that GAP will post 2.33 earnings per share for the current fiscal year.

GAP Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 7th will be issued a dividend of $0.175 per share. The ex-dividend date of this dividend is Wednesday, October 7th. This represents a $0.70 dividend on an annualized basis and a yield of 3.5%. GAP's dividend payout ratio is 27.56%.

Wall Street Analysts Forecast Growth

GAP has been the subject of a number of research reports. The Goldman Sachs Group decreased their target price on GAP from $28.00 to $25.00 and set a "buy" rating for the company in a report on Thursday. TD Cowen reduced their price target on shares of GAP from $26.00 to $23.00 and set a "buy" rating for the company in a research report on Tuesday, August 18th. Evercore set a $20.00 price objective on shares of GAP and gave the company an "in-line" rating in a research note on Friday, May 29th. Weiss Ratings lowered shares of GAP from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, July 28th. Finally, Jefferies Financial Group cut shares of GAP from a "buy" rating to a "hold" rating and reduced their target price for the stock from $29.00 to $23.00 in a report on Wednesday, August 12th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat, GAP presently has an average rating of "Moderate Buy" and a consensus price target of $26.29.

About GAP

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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