Ross Stores (NASDAQ:ROST) Cut to Hold at Zacks Research

Zacks Research downgraded shares of Ross Stores (NASDAQ:ROST) from a strong-buy rating to a hold rating in a research note issued to investors on Wednesday,Zacks reports.

A number of other brokerages have also recently issued reports on ROST. Citigroup increased their target price on Ross Stores from $270.00 to $290.00 and gave the stock a “buy” rating in a report on Friday, August 21st. Telsey Advisory Group boosted their price target on Ross Stores from $265.00 to $280.00 and gave the company an “outperform” rating in a research note on Friday, August 14th. UBS Group upgraded Ross Stores from a “neutral” rating to a “buy” rating and upped their price target for the company from $239.00 to $315.00 in a research report on Monday, October 26th. Bank of America cut their price objective on Ross Stores from $265.00 to $258.00 and set a “buy” rating for the company in a report on Tuesday, October 27th. Finally, Morgan Stanley upped their target price on shares of Ross Stores from $231.00 to $234.00 and gave the stock an “equal weight” rating in a report on Friday, August 21st. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, Ross Stores presently has an average rating of “Moderate Buy” and an average price target of $272.06.

Ross Stores Stock Performance

ROST stock traded down $4.14 during midday trading on Wednesday, hitting $231.09. The stock had a trading volume of 2,277,559 shares, compared to its average volume of 2,084,620. Ross Stores has a 52 week low of $157.73 and a 52 week high of $257.00. The company has a current ratio of 1.61, a quick ratio of 0.98 and a debt-to-equity ratio of 0.12. The stock has a 50-day simple moving average of $230.90 and a 200 day simple moving average of $223.13. The firm has a market capitalization of $73.82 billion, a price-to-earnings ratio of 27.98, a P/E/G ratio of 2.06 and a beta of 0.85.

Ross Stores (NASDAQ:ROST) last announced its quarterly earnings data on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.95 by $0.71. The company 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 revenue was up 13.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.56 EPS. As a group, equities research analysts anticipate that Ross Stores will post 8.15 earnings per share for the current year.

Ross Stores Dividend Announcement

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

Insiders Place Their Bets

In other news, CEO James Conroy sold 49,205 shares of the firm’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $229.48, for a total value of $11,291,563.40. Following the completion of the sale, the chief executive officer directly owned 134,349 shares in the company, valued at approximately $30,830,408.52. This trade represents a 26.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Stephen C. Brinkley sold 6,424 shares of Ross Stores 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 of the company’s stock, valued at $11,865,383.90. This represents a 11.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ross Stores

Hedge funds have recently added to or reduced their stakes in the stock. 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 valued at $1,408,148,000 after acquiring an additional 3,118,591 shares during the last quarter. United Capital Financial Advisors LLC acquired a new stake in Ross Stores in the second quarter worth about $3,390,000. NewEdge Advisors LLC increased its position in Ross Stores by 40.6% in the second quarter. NewEdge Advisors LLC now owns 17,353 shares of the apparel retailer’s stock worth $3,694,000 after purchasing an additional 5,012 shares during the period. Ontario Teachers Pension Plan Board bought a new stake in Ross Stores during the 2nd quarter worth about $34,867,000. Finally, Nicholas Investment Partners LP bought a new stake in Ross Stores during the 2nd quarter worth about $2,559,000. Institutional investors own 86.86% of the company’s stock.

About Ross Stores

Ross Stores, Inc is an off-price retailer operating Ross Dress for Less and dd’s DISCOUNTS. Its stores offer name-brand and designer merchandise at discounted prices, with product selection and availability varying by location and season.

Ross Dress for Less sells apparel, footwear, accessories, home fashions, furnishings, and other merchandise for the whole family. dd’s DISCOUNTS offers a similar off-price assortment, including clothing, shoes, home goods, and related products.

The company traces its origins to a department store founded in San Bruno, California, in 1950.