Neo Ivy Capital Management Purchases New Shares in The Gap, Inc. $GAP

Neo Ivy Capital Management acquired a new position in The Gap, Inc. (NYSE:GAP) in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 166,198 shares of the company’s stock, valued at approximately $3,555,000. GAP makes up about 0.9% of Neo Ivy Capital Management’s investment portfolio, making the stock its 21st largest holding.

Several other hedge funds have also recently modified their holdings of the company. Root Financial Partners LLC purchased a new position in shares of GAP in the 3rd quarter worth approximately $27,000. Cornerstone Planning Group LLC purchased a new stake in shares of GAP during the third quarter valued at approximately $35,000. EverSource Wealth Advisors LLC boosted its position in GAP by 177.0% in the second quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock worth $153,000 after purchasing an additional 4,483 shares during the last quarter. Covestor Ltd grew its stake in GAP by 1,228.1% in the 3rd quarter. Covestor Ltd now owns 7,597 shares of the company’s stock valued at $163,000 after purchasing an additional 7,025 shares during the period. Finally, Rothschild Investment LLC grew its stake in GAP by 1,723.0% in the 3rd quarter. Rothschild Investment LLC now owns 9,352 shares of the company’s stock valued at $200,000 after purchasing an additional 8,839 shares during the period. Institutional investors own 58.81% of the company’s stock.

Insider Activity at GAP

In related news, Director William Sydney Fisher sold 88,860 shares of GAP stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $26.82, for a total value of $2,383,225.20. Following the completion of the transaction, the director directly owned 2,764,593 shares in the company, valued at approximately $74,146,384.26. The trade was a 3.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Julie Gruber sold 30,000 shares of the stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $28.00, for a total value of $840,000.00. Following the sale, the insider owned 37,395 shares in the company, valued at approximately $1,047,060. This represents a 44.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 133,971 shares of company stock worth $3,629,264. Corporate insiders own 30.56% of the company’s stock.

More GAP News

Here are the key news stories impacting GAP this week:

• Positive Sentiment: Company raised its FY‑2026 targets: EPS guidance of $2.20–$2.35 (above consensus) and revenue guide of $15.7–$15.9B, which suggests stronger full‑year growth potential. The board also authorized a $1 billion share repurchase program. PR Newswire: Q4 results & FY26 outlook
• Positive Sentiment: Core brands showed underlying momentum: Q4 revenue rose ~2% Y/Y with comp growth at Old Navy, Gap and Banana Republic, indicating brand-level operational progress despite margin pressure. Zacks: Q4 earnings summary
• Positive Sentiment: Several brokers still see upside: JPMorgan kept an Overweight call while trimming its target to $33 (still well above the current price); Telsey raised its target earlier. These analyst endorsements support a constructive medium‑term view. TickerReport / Benzinga: JPMorgan target note
• Neutral Sentiment: Citigroup nudged its target up to $27 but kept a Neutral rating — a modestly constructive but cautious stance that may limit immediate bullish momentum. Benzinga: Citigroup target update
• Neutral Sentiment: Value/analyst writeups highlight GAP as a value opportunity given current multiples (P/E ~10) and turnaround narrative; useful context but not an immediate catalyst. Zacks: GAP as value stock
• Negative Sentiment: Investors reacted to a small EPS miss (reported $0.45 vs. ~$0.46 street estimate) and headline‑level revenue slightly below some forecasts — the misses triggered a selloff in high intraday volume. Proactive Investors: Shares fall after earnings miss
• Negative Sentiment: Athleta remains a drag: same‑store sales fell ~10% in Q4, pressuring margins and prompting management to say rebuilding will take time — a near‑term earnings headwind. WSJ: Athleta slump
• Negative Sentiment: Operational disruptions: historic winter storms forced ~800 temporary store closures in Q4, which hurt short‑term sales and was cited by management as a factor in the quarterly miss. CNBC: Winter storms impact
• Negative Sentiment: Macro/tail risks flagged: management and some outlets cited tariff pressures and margin headwinds that could keep near‑term profit below some analyst estimates. U.S. News: Tariff and profit concerns

GAP Trading Down 14.4%

Shares of GAP stock opened at $23.28 on Friday. The stock has a market capitalization of $8.66 billion, a P/E ratio of 10.83, a P/E/G ratio of 2.80 and a beta of 2.29. The Gap, Inc. has a 52-week low of $16.99 and a 52-week high of $29.36. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.97 and a current ratio of 1.72. The stock’s 50-day simple moving average is $27.27 and its 200 day simple moving average is $24.92.

GAP (NYSE:GAP) last issued its earnings results on Thursday, March 5th. The company reported $0.45 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.45. The firm had revenue of $4.24 billion during the quarter, compared to analyst estimates of $4.24 billion. GAP had a net margin of 5.31% and a return on equity of 23.54%. The company’s quarterly revenue was up 2.1% on a year-over-year basis. During the same quarter last year, the business earned $0.54 earnings per share. GAP has set its FY 2026 guidance at 2.200-2.350 EPS. As a group, research analysts anticipate that The Gap, Inc. will post 2.02 EPS for the current year.

GAP Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 29th. Investors of record on Wednesday, April 8th will be issued a $0.175 dividend. This is a boost from GAP’s previous quarterly dividend of $0.17. The ex-dividend date of this dividend is Wednesday, April 8th. This represents a $0.70 annualized dividend and a yield of 3.0%. GAP’s payout ratio is 29.46%.

Analysts Set New Price Targets

A number of research firms have recently commented on GAP. BTIG Research lifted their target price on GAP from $30.00 to $31.00 and gave the stock a “buy” rating in a research note on Friday, November 21st. Guggenheim initiated coverage on shares of GAP in a research note on Tuesday, December 9th. They issued a “neutral” rating on the stock. Robert W. Baird set a $33.00 target price on shares of GAP and gave the company an “outperform” rating in a research report on Wednesday, December 17th. UBS Group upgraded shares of GAP from a “neutral” rating to a “buy” rating and raised their price target for the stock from $26.00 to $41.00 in a research note on Wednesday, January 7th. Finally, JPMorgan Chase & Co. lowered their price target on shares of GAP from $36.00 to $33.00 and set an “overweight” rating on the stock in a report on Friday. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, GAP has an average rating of “Moderate Buy” and a consensus price target of $30.46.

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.