Empowered Funds LLC Invests $12.18 Million in The Gap, Inc. $GAP

Empowered Funds LLC purchased a new position in The Gap, Inc. (NYSE:GAP) during the 2nd quarter, Holdings Channel reports. The fund purchased 652,055 shares of the company’s stock, valued at approximately $12,180,000.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Amundi bought a new position in GAP in the 1st quarter worth about $259,000. EverSource Wealth Advisors LLC raised its stake in shares of GAP by 177.0% during the second quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock valued at $153,000 after acquiring an additional 4,483 shares in the last quarter. Jump Financial LLC purchased a new stake in shares of GAP in the second quarter valued at approximately $612,000. California State Teachers Retirement System boosted its holdings in shares of GAP by 0.8% in the second quarter. California State Teachers Retirement System now owns 226,506 shares of the company’s stock valued at $4,940,000 after purchasing an additional 1,703 shares during the period. Finally, Ameriprise Financial Inc. grew its stake in GAP by 42.7% in the second 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 in the last quarter. Institutional investors own 58.81% of the company’s stock.

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.

GAP Trading Up 12.9%

NYSE:GAP opened at $23.48 on Friday. The stock has a market capitalization of $8.45 billion, a price-to-earnings ratio of 7.01, a PEG ratio of 1.23 and a beta of 2.05. The Gap, Inc. has a 52 week low of $18.11 and a 52 week high of $29.36. The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41. The firm has a 50 day moving average of $20.06 and a 200 day moving average of $22.87.

GAP (NYSE:GAP) last released its quarterly earnings results 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 for the quarter, compared to analyst estimates of $3.69 billion. GAP had a net margin of 8.14% and a return on equity of 20.05%. The business’s revenue for the quarter was down 2.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.57 earnings per share. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. As a group, sell-side analysts anticipate that The Gap, Inc. will post 2.33 earnings per share for the current fiscal year.

GAP Announces Dividend

The firm 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 3.0%. The ex-dividend date is Wednesday, October 7th. GAP’s payout ratio is 27.56%.

Analysts Set New Price Targets

A number of brokerages have weighed in on GAP. JPMorgan Chase & Co. reaffirmed 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. BTIG Research increased their price target on GAP from $26.00 to $27.00 and gave the stock a “buy” rating in a research report on Friday. Weiss Ratings lowered GAP from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, July 28th. Barclays raised their price target on GAP from $20.00 to $23.00 and gave the company an “equal weight” rating in a research note on Friday. Finally, Bank of America upped their price objective on shares of GAP from $26.00 to $27.00 and gave the stock a “neutral” rating in a research note on Friday. Two equities research 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. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $27.21.

GAP 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.