Ross Stores (NASDAQ:ROST) Sets New 1-Year High on Strong Earnings

Ross Stores, Inc. (NASDAQ:ROST) hit a new 52-week high during mid-day trading on Friday following a stronger than expected earnings report. The stock traded as high as $171.00 and last traded at $167.41, with a volume of 801994 shares. The stock had previously closed at $160.50.

The apparel retailer reported $1.58 EPS for the quarter, beating the consensus estimate of $1.38 by $0.20. Ross Stores had a return on equity of 37.37% and a net margin of 9.60%.The company had revenue of $5.60 billion for the quarter, compared to analyst estimates of $5.38 billion. During the same quarter in the prior year, the company earned $1.48 EPS. The firm’s revenue for the quarter was up 10.4% compared to the same quarter last year. Ross Stores has set its FY 2025 guidance at 6.380-6.46 EPS. Q4 2025 guidance at 1.770-1.85 EPS.

Ross Stores Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 31st. Stockholders of record on Tuesday, December 9th will be given a dividend of $0.405 per share. The ex-dividend date of this dividend is Tuesday, December 9th. This represents a $1.62 annualized dividend and a dividend yield of 1.0%. Ross Stores’s dividend payout ratio (DPR) is 25.71%.

Analysts Set New Price Targets

ROST has been the topic of a number of research reports. UBS Group set a $169.00 target price on shares of Ross Stores in a research report on Friday. Weiss Ratings reissued a “buy (b)” rating on shares of Ross Stores in a research report on Tuesday, October 14th. Telsey Advisory Group raised their target price on Ross Stores from $160.00 to $175.00 and gave the company a “market perform” rating in a research note on Friday. Erste Group Bank initiated coverage on Ross Stores in a research note on Friday, October 31st. They set a “buy” rating on the stock. Finally, BTIG Research began coverage on Ross Stores in a research note on Tuesday, October 14th. They issued a “neutral” rating for the company. Fifteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Ross Stores presently has a consensus rating of “Moderate Buy” and an average target price of $168.69.

Insider Activity

In related news, insider Stephen C. Brinkley sold 6,437 shares of the business’s stock in a transaction dated Wednesday, October 8th. The shares were sold at an average price of $150.97, for a total transaction of $971,793.89. Following the transaction, the insider directly owned 57,012 shares in the company, valued at approximately $8,607,101.64. The trade was a 10.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CMO Karen Fleming sold 2,932 shares of the stock in a transaction that occurred on Thursday, September 25th. The shares were sold at an average price of $149.09, for a total value of $437,131.88. Following the sale, the chief marketing officer directly owned 88,335 shares of the company’s stock, valued at $13,169,865.15. The trade was a 3.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 52,720 shares of company stock valued at $7,761,212 over the last ninety days. Company insiders own 2.20% of the company’s stock.

Institutional Investors Weigh In On Ross Stores

Hedge funds have recently made changes to their positions in the business. WBI Investments LLC purchased a new stake in Ross Stores during the third quarter worth about $269,000. Kensington Investment Counsel LLC grew its position in shares of Ross Stores by 1.0% during the 3rd quarter. Kensington Investment Counsel LLC now owns 7,632 shares of the apparel retailer’s stock valued at $1,163,000 after acquiring an additional 73 shares during the period. Caerus Investment Advisors LLC purchased a new stake in shares of Ross Stores during the 3rd quarter worth approximately $476,000. Captrust Financial Advisors raised its holdings in shares of Ross Stores by 2.4% in the 3rd quarter. Captrust Financial Advisors now owns 65,810 shares of the apparel retailer’s stock worth $10,029,000 after purchasing an additional 1,544 shares during the period. Finally, Danske Bank A S bought a new stake in shares of Ross Stores in the 3rd quarter worth approximately $21,122,000. 86.86% of the stock is currently owned by institutional investors.

Ross Stores Trading Up 5.4%

The company has a quick ratio of 0.98, a current ratio of 1.58 and a debt-to-equity ratio of 0.18. The firm has a 50 day moving average of $155.11 and a 200 day moving average of $145.62. The firm has a market cap of $55.03 billion, a PE ratio of 26.86, a P/E/G ratio of 3.04 and a beta of 1.16.

About Ross Stores

Ross Stores, Inc, together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd’s DISCOUNTS brand names in the United States. Its stores primarily offer apparel, accessories, footwear, and home fashions. The company’s Ross Dress for Less stores sell its products at department and specialty stores to middle income households; and dd’s DISCOUNTS stores sell its products at department and discount stores for households with moderate income.