Ross Stores (NASDAQ:ROST) Upgraded to “Strong-Buy” at Wolfe Research

Wolfe Research upgraded shares of Ross Stores (NASDAQ:ROST) to a strong-buy rating in a report released on Wednesday morning, MarketBeat reports.

Other equities analysts also recently issued reports about the stock. Citigroup increased their price target on shares of Ross Stores from $270.00 to $290.00 and gave the stock a “buy” rating in a research note on Friday, August 21st. Morgan Stanley lifted their price objective on Ross Stores from $231.00 to $234.00 and gave the company an “equal weight” rating in a research report on Friday, August 21st. Zacks Research raised Ross Stores from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 6th. Jefferies Financial Group upped their target price on Ross Stores from $265.00 to $285.00 and gave the stock a “buy” rating in a report on Friday, August 21st. Finally, Weiss Ratings raised Ross Stores from a “buy (b)” rating to a “buy (a-)” rating in a research report on Friday, October 16th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $264.61.

Ross Stores Stock Up 1.1%

Ross Stores stock opened at $236.67 on Wednesday. Ross Stores has a twelve month low of $154.87 and a twelve month high of $257.00. The firm has a 50 day moving average price of $231.76 and a 200-day moving average price of $230.05. The company has a market capitalization of $75.60 billion, a P/E ratio of 28.65, a P/E/G ratio of 1.97 and a beta of 0.83. The company has a quick ratio of 0.98, a current ratio of 1.61 and a debt-to-equity ratio of 0.12.

Ross Stores (NASDAQ:ROST) last released its quarterly earnings results on Thursday, August 20th. The apparel retailer reported $2.66 EPS for the quarter, topping analysts’ consensus estimates of $1.95 by $0.71. The business had revenue of $6.26 billion during the quarter, compared to analysts’ expectations of $6.16 billion. Ross Stores had a net margin of 10.85% and a return on equity of 39.29%. The business’s quarterly revenue was up 13.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.56 EPS. As a group, equities analysts predict that Ross Stores will post 8.15 EPS for the current year.

Ross Stores Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 8th were given a $0.4450 dividend. The ex-dividend date of this dividend was Tuesday, September 8th. This represents a $1.78 dividend on an annualized basis and a dividend yield of 0.8%. Ross Stores’s dividend payout ratio is currently 21.55%.

Insider Activity

In related news, insider Stephen Brinkley sold 6,424 shares of the stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $229.66, for a total value of $1,475,335.84. Following the completion of the transaction, the insider directly owned 51,665 shares in the company, valued at $11,865,383.90. This trade represents a 11.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO James Conroy sold 49,205 shares of Ross Stores stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $229.48, for a total transaction of $11,291,563.40. Following the transaction, the chief executive officer directly owned 134,349 shares of the company’s stock, valued at approximately $30,830,408.52. This trade represents a 26.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Ross Stores

Several large investors have recently made changes to their positions in ROST. BlackRock Inc. purchased a new stake in shares of Ross Stores in the 2nd quarter worth approximately $5,938,711,000. Bank of America Corp DE purchased a new position in Ross Stores during the second quarter valued at $2,024,203,000. Primecap Management Co. CA purchased a new position in Ross Stores during the second quarter valued at $1,937,995,000. Wellington Management Group LLP boosted its holdings in Ross Stores by 89.2% in the second quarter. Wellington Management Group LLP now owns 6,615,682 shares of the apparel retailer’s stock worth $1,408,148,000 after acquiring an additional 3,118,591 shares in the last quarter. Finally, Legal & General Group Plc bought a new stake in Ross Stores in the second quarter worth $476,200,000. 86.86% of the stock is currently owned by hedge funds and other institutional investors.

About Ross Stores

Ross Stores, Inc is an off-price apparel and home fashion retailer headquartered in Dublin, California. The company operates primarily through its Ross Dress for Less stores, which offer branded and designer apparel, accessories, footwear, and home merchandise at discounts to regular department and specialty store prices.

Ross Stores also operates dd’s DISCOUNTS, a chain focused on value-oriented apparel, accessories, footwear, and home products. Both retail formats generally purchase merchandise opportunistically from manufacturers, department stores, and other suppliers, allowing the company to offer changing assortments and discounted prices.

Founded in 1950, Ross Stores serves customers across the United States through its store network and e-commerce presence.