Empowered Funds LLC Buys New Stake in The Gap, Inc. $GAP

Empowered Funds LLC purchased a new stake in shares of The Gap, Inc. (NYSE:GAP) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 652,055 shares of the company’s stock, valued at approximately $12,180,000. Empowered Funds LLC owned approximately 0.18% of GAP as of its most recent SEC filing.

Several other institutional investors have also bought and sold shares of the business. Public Employees Retirement System of Ohio increased its holdings in shares of GAP by 0.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 71,867 shares of the company’s stock worth $1,537,000 after buying an additional 447 shares during the last quarter. Cullen Frost Bankers Inc. purchased a new stake in shares of GAP during the 4th quarter valued at about $26,000. Plato Investment Management Ltd bought a new position in shares of GAP in the 4th quarter valued at about $28,000. Global Retirement Partners LLC bought a new position in shares of GAP in the 2nd quarter valued at about $29,000. Finally, California State Teachers Retirement System grew its position in GAP by 0.8% in the second quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock worth $4,940,000 after acquiring an additional 1,703 shares in the last quarter. Institutional investors own 58.81% of the company’s stock.

GAP Stock Performance

GAP stock opened at $23.48 on Friday. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.81 and a quick ratio of 1.08. The Gap, Inc. has a 1-year low of $18.11 and a 1-year high of $29.36. The firm has a market capitalization of $8.45 billion, a P/E ratio of 7.01, a price-to-earnings-growth ratio of 1.23 and a beta of 2.05. The company’s 50-day moving average is $20.06 and its 200 day moving average is $22.87.

GAP (NYSE:GAP) last announced its quarterly earnings data on Thursday, August 27th. The company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.04. The business had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.69 billion. GAP had a net margin of 8.14% and a return on equity of 20.05%. The firm’s quarterly revenue was down 2.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.57 earnings per share. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. Research analysts forecast that The Gap, Inc. will post 2.33 EPS for the current year.

GAP Dividend Announcement

The firm also recently declared 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 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend is Wednesday, October 7th. GAP’s dividend payout ratio (DPR) is currently 27.56%.

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 Analyst Weigh In

Several equities research analysts have weighed in on GAP shares. Wells Fargo & Company boosted their price objective on GAP from $22.00 to $23.00 and gave the stock a “cautious” rating in a research note on Friday. Jefferies Financial Group lowered GAP from a “buy” rating to a “hold” rating and lowered their price objective for the company from $29.00 to $23.00 in a research note on Wednesday, August 12th. Morgan Stanley boosted their target price on GAP from $21.00 to $23.00 and gave the company an “equal weight” rating in a research report on Friday. JPMorgan Chase & Co. reissued a “neutral” rating and set a $27.00 target price (down from $35.00) on shares of GAP in a research report on Friday, May 29th. Finally, UBS Group increased their price target on GAP from $40.00 to $42.00 and gave the company a “buy” rating in a report on Friday. Two 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 company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $27.21.

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.