Neo Ivy Capital Management Invests $3.56 Million in The Gap, Inc. $GAP

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

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

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on GAP. Guggenheim began coverage on GAP in a research note on Tuesday, December 9th. They issued a “neutral” rating on the stock. Wall Street Zen downgraded GAP from a “buy” rating to a “hold” rating in a research report on Saturday. Jefferies Financial Group raised GAP from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $22.00 to $30.00 in a report on Friday, November 14th. UBS Group upgraded shares of GAP from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $26.00 to $41.00 in a research report on Wednesday, January 7th. Finally, Bank of America raised their target price on shares of GAP from $23.00 to $27.00 and gave the company a “neutral” rating in a research note on Friday, November 21st. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $30.46.

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

Insiders Place Their Bets

In other GAP news, Director William Sydney Fisher sold 11,140 shares of GAP stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $26.81, for a total transaction of $298,663.40. Following the transaction, the director directly owned 2,753,453 shares of the company’s stock, valued at approximately $73,820,074.93. This trade represents a 0.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, major shareholder John J. Fisher sold 3,971 shares of the business’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $27.04, for a total transaction of $107,375.84. Following the completion of the sale, the insider owned 746,781 shares of the company’s stock, valued at approximately $20,192,958.24. The trade was a 0.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 133,971 shares of company stock valued at $3,629,264 over the last quarter. 30.56% of the stock is owned by corporate insiders.

GAP Stock Down 14.4%

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

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

GAP Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 29th. Investors of record on Wednesday, April 8th will be given a $0.175 dividend. This represents a $0.70 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date is Wednesday, April 8th. This is a positive change from GAP’s previous quarterly dividend of $0.17. GAP’s dividend payout ratio is presently 29.46%.

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.