Sequoia Financial Advisors LLC Increases Position in The Gap, Inc. $GAP

Sequoia Financial Advisors LLC lifted its holdings in shares of The Gap, Inc. (NYSE:GAP) by 26.2% in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 172,326 shares of the company’s stock after buying an additional 35,747 shares during the period. Sequoia Financial Advisors LLC’s holdings in GAP were worth $3,219,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. BlackRock Inc. acquired a new position in GAP in the 2nd quarter valued at about $428,824,000. California State Teachers Retirement System lifted its position in GAP by 1,732.5% during the 2nd quarter. California State Teachers Retirement System now owns 5,116,415 shares of the company’s stock worth $95,575,000 after acquiring an additional 4,837,214 shares during the period. Bank of America Corp DE purchased a new position in shares of GAP in the 2nd quarter valued at approximately $30,345,000. Ameriprise Financial Inc. grew its stake in shares of GAP by 42.7% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,407,809 shares of the company’s stock valued at $96,134,000 after purchasing an additional 1,318,322 shares during the last quarter. Finally, Miller Howard Investments Inc. NY increased its holdings in shares of GAP by 112.2% in the first quarter. Miller Howard Investments Inc. NY now owns 1,704,021 shares of the company’s stock valued at $41,237,000 after purchasing an additional 900,855 shares during the period. Hedge funds and other institutional investors own 58.81% of the company’s stock.

GAP Stock Up 3.2%

GAP stock opened at $21.57 on Friday. The stock’s 50 day moving average price is $20.51 and its 200 day moving average price is $22.47. The Gap, Inc. has a 1-year low of $18.11 and a 1-year high of $29.36. The company has a market cap of $7.58 billion, a PE ratio of 6.44, a price-to-earnings-growth ratio of 0.91 and a beta of 2.08. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.82 and a quick ratio of 1.11.

GAP (NYSE:GAP) last released 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. GAP had a return on equity of 19.72% and a net margin of 8.14%.The firm had revenue of $3.65 billion during the quarter, compared to analysts’ expectations of $3.69 billion. During the same quarter in the prior year, the business posted $0.57 earnings per share. GAP’s revenue was down 2.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. On average, sell-side analysts predict that The Gap, Inc. will post 2.41 EPS for the current fiscal year.

GAP Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be issued a $0.175 dividend. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Wednesday, October 7th. GAP’s dividend payout ratio (DPR) is currently 20.90%.

GAP News Summary

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Analyst upgrade: BMO Capital Markets upgraded GAP to “hold,” improving the stock’s rating outlook and potentially supporting investor sentiment. The shares remain well below their 12-month high, while their low valuation—about 6.4 times earnings—may attract value-oriented investors. Zacks analyst rating report
• Positive Sentiment: Brand and product momentum: GAP is highlighting its handbag business through a Reed Krakoff collaboration and a Rockefeller Center takeover during New York Fashion Week. The initiative could increase visibility for the brand and support growth in accessories, an important area for improving sales and margins. WWD article on Gap handbags and Reed Krakoff
• Neutral Sentiment: Mixed long-term estimates: Zacks Research raised its FY2027 EPS estimate to $2.41 from $2.31 and its FY2028 estimate to $2.62 from $2.55. It also increased estimates for Q4 FY2027, Q3 FY2028 and Q4 FY2028, suggesting improving expectations for select periods.
• Negative Sentiment: Near-term estimate reductions: Zacks lowered its Q1 and Q2 FY2029 EPS forecasts and trimmed FY2029 estimates slightly to $2.81 from $2.82. It also reduced its Q2 FY2028 estimate, indicating some uncertainty about future earnings consistency.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. UBS Group increased their price target on GAP from $40.00 to $42.00 and gave the stock a “buy” rating in a report on Friday, August 28th. JPMorgan Chase & Co. reissued a “neutral” rating and issued a $27.00 price objective (down from $35.00) on shares of GAP in a research note on Friday, May 29th. TD Cowen upped their price objective on shares of GAP from $23.00 to $27.00 and gave the stock a “buy” rating in a research report on Friday, August 28th. Weiss Ratings cut shares of GAP from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, July 28th. Finally, Barclays lifted their target price on shares of GAP from $20.00 to $23.00 and gave the company an “equal weight” rating in a report on Friday, August 28th. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, GAP currently has an average rating of “Hold” and a consensus price target of $27.07.

GAP Profile

Gap Inc is an American specialty apparel retailer founded in 1969 by Donald and Doris Fisher in San Francisco, California. The company operates a portfolio of consumer brands focused on clothing, accessories and personal-care products for women, men and children.

Its principal brands include Old Navy, Gap, Banana Republic and Athleta. Products are sold through company-operated stores, franchise locations and digital channels, with offerings spanning casual apparel, denim, activewear, accessories and lifestyle products.

Gap Inc serves customers in North America and selected international markets through its retail and e-commerce operations.