Ross Stores (NASDAQ:ROST) Upgraded to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Ross Stores (NASDAQ:ROST) from a hold rating to a strong-buy rating in a research note published on Tuesday morning,Zacks reports.

Several other equities research analysts also recently weighed in on ROST. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $294.00 target price on shares of Ross Stores in a research note on Friday, August 21st. Telsey Advisory Group raised their price target on shares of Ross Stores from $265.00 to $280.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. JPMorgan Chase & Co. boosted their price target on shares of Ross Stores from $262.00 to $272.00 and gave the stock an “overweight” rating in a research note on Friday, August 21st. Jefferies Financial Group upped their price objective on Ross Stores from $265.00 to $285.00 and gave the stock a “buy” rating in a research report on Friday, August 21st. Finally, Truist Financial increased their price objective on Ross Stores from $290.00 to $310.00 and gave the company a “buy” rating in a research note on Friday, August 21st. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, Ross Stores has a consensus rating of “Moderate Buy” and an average target price of $263.76.

Ross Stores Stock Performance

Shares of Ross Stores stock opened at $225.53 on Tuesday. The business has a 50-day moving average of $236.20 and a 200 day moving average of $228.78. Ross Stores has a 12 month low of $147.49 and a 12 month high of $257.00. The stock has a market capitalization of $72.05 billion, a price-to-earnings ratio of 27.30, a price-to-earnings-growth ratio of 1.88 and a beta of 0.83. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.61 and a quick ratio of 0.98.

Ross Stores (NASDAQ:ROST) last issued its quarterly earnings results on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.95 by $0.71. The company had revenue of $6.26 billion for the quarter, compared to analyst estimates 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 for the quarter was up 13.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.56 earnings per share. As a group, sell-side analysts forecast that Ross Stores will post 8.15 earnings per share for the current year.

Ross Stores Announces Dividend

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

Insider Activity at Ross Stores

In other Ross Stores news, insider Stephen Brinkley sold 6,424 shares of the stock in a transaction that occurred on 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 sale, the insider directly owned 51,665 shares of the company’s stock, valued at approximately $11,865,383.90. This represents a 11.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CEO James Conroy sold 49,205 shares of the stock in a transaction that occurred on 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 completion of the sale, the chief executive officer directly owned 134,349 shares in the company, valued at approximately $30,830,408.52. This represents a 26.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Ross Stores

Institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in Ross Stores during the 2nd quarter worth about $5,938,711,000. State Street Corp boosted its position in shares of Ross Stores by 5.3% during the 2nd quarter. State Street Corp now owns 14,643,656 shares of the apparel retailer’s stock worth $3,116,902,000 after acquiring an additional 734,009 shares in the last quarter. Bank of America Corp DE purchased a new position in shares of Ross Stores in the 2nd quarter valued at about $2,024,203,000. Primecap Management Co. CA purchased a new position in shares of Ross Stores in the 2nd quarter valued at about $1,937,995,000. Finally, Wellington Management Group LLP raised its position in shares of Ross Stores by 89.2% during the 2nd 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. Institutional investors and hedge funds own 86.86% of the company’s stock.

About Ross Stores

Ross Stores, Inc is an American off-price apparel and home fashion retailer headquartered in Dublin, California. The company operates primarily through its Ross Dress for Less stores, offering customers discounted prices on clothing, footwear, accessories, and home furnishings from a range of national and private-label brands.

Ross Stores also operates dd’s DISCOUNTS, a chain focused on value-oriented merchandise for families and communities seeking lower-priced apparel, footwear, accessories, and home products.