Redwood Investment Management LLC Acquires New Stake in The Gap, Inc. $GAP

Redwood Investment Management LLC bought a new position in shares of The Gap, Inc. (NYSE:GAP) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor bought 63,460 shares of the company’s stock, valued at approximately $1,185,000.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. BlackRock Inc. acquired a new position in GAP in the 2nd quarter valued at about $428,824,000. Ameriprise Financial Inc. boosted its stake in shares of GAP by 4.1% in the third quarter. Ameriprise Financial Inc. now owns 4,588,800 shares of the company’s stock valued at $98,154,000 after purchasing an additional 180,991 shares during the period. Geode Capital Management LLC boosted its stake in shares of GAP by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 4,291,846 shares of the company’s stock valued at $110,750,000 after purchasing an additional 14,141 shares during the period. LSV Asset Management grew its holdings in shares of GAP by 3.6% in the fourth quarter. LSV Asset Management now owns 3,462,702 shares of the company’s stock valued at $88,645,000 after purchasing an additional 121,001 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its holdings in shares of GAP by 13.0% in the fourth quarter. Bank of New York Mellon Corp now owns 3,195,934 shares of the company’s stock valued at $81,816,000 after purchasing an additional 368,191 shares in the last quarter. 58.81% of the stock is currently owned by hedge funds and other institutional investors.

GAP Stock Up 4.7%

Shares of GAP stock opened at $21.09 on Thursday. 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 Gap, Inc. has a 52-week low of $18.11 and a 52-week high of $29.36. The company has a market capitalization of $7.59 billion, a P/E ratio of 8.30, a P/E/G ratio of 1.19 and a beta of 2.05. The company has a 50 day moving average of $20.02 and a 200 day moving average of $22.93.

GAP (NYSE:GAP) last announced its quarterly earnings data on Thursday, May 28th. The company reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). GAP had a net margin of 6.25% and a return on equity of 21.13%. The firm had revenue of $3.50 billion during the quarter, compared to analysts’ expectations of $3.52 billion. During the same period in the prior year, the company posted $0.51 earnings per share. The company’s revenue for the quarter was up 1.0% on a year-over-year basis. As a group, research analysts forecast that The Gap, Inc. will post 2.33 EPS for the current fiscal year.

GAP Dividend Announcement

The company 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. The ex-dividend date is Wednesday, October 7th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.3%. GAP’s payout ratio is presently 27.56%.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Jefferies Financial Group lowered 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. Wells Fargo & Company restated an “equal weight” rating and issued a $22.00 price target (down from $26.00) on shares of GAP in a research note on Friday, August 7th. Weiss Ratings lowered GAP from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, July 28th. Evercore set a $20.00 price objective on GAP and gave the company an “in-line” rating in a research note on Friday, May 29th. Finally, Bank of America decreased their target price on GAP from $29.00 to $26.00 and set a “neutral” rating for the company in a report on Friday, May 29th. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat.com, GAP presently has a consensus rating of “Moderate Buy” and a consensus price target of $26.29.

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.