According to Zacks, “Ross Stores has been gaining from the favorable response of value-focused customers to its extensive collection of brand bargains and solid cost controls. Though Ross Stores expects to face obstacles related to strong comparisons, amid macroeconomic uncertainty and a competitive retail landscape, it remains confident of performing well in the year ahead. This is further highlighted by the robust third and fourth quarter outlook provided by the company, with its second quarter results. Also, Ross Stores' solid financial status, ongoing merchandise initiatives and consistent focus on store expansion bode well. Evidently, the company recently achieved its expansion target for the second quarter, which also marked the second leg of expansion under the company's fiscal 2016 plan of adding nearly 90 stores. At the same time, however, over-expansion in new domestic markets may invite the threat of cannibalization.”
Several other research firms have also recently commented on ROST. MKM Partners reaffirmed a buy rating and issued a $72.00 target price (up from $65.00) on shares of Ross Stores in a research note on Monday, August 22nd. Vetr cut shares of Ross Stores from a buy rating to a hold rating and set a $65.00 price objective for the company. in a research note on Monday, August 22nd. Buckingham Research raised shares of Ross Stores from a neutral rating to a buy rating in a research note on Thursday, August 25th. JPMorgan Chase & Co. boosted their price objective on shares of Ross Stores from $51.00 to $66.00 and gave the company a neutral rating in a research note on Friday, August 19th. Finally, Goldman Sachs Group Inc. boosted their price objective on shares of Ross Stores from $64.00 to $67.00 and gave the company a neutral rating in a research note on Friday, August 19th. One equities research analyst has rated the stock with a sell rating, twelve have assigned a hold rating and fifteen have assigned a buy rating to the company’s stock. Ross Stores has an average rating of Buy and a consensus price target of $65.29.
Shares of Ross Stores (NASDAQ:ROST) opened at 64.30 on Tuesday. The firm has a 50-day moving average price of $62.97 and a 200-day moving average price of $58.48. The firm has a market capitalization of $25.50 billion, a PE ratio of 24.48 and a beta of 0.94. Ross Stores has a 1-year low of $43.47 and a 1-year high of $66.28.
Ross Stores (NASDAQ:ROST) last released its earnings results on Thursday, August 18th. The apparel retailer reported $0.71 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.67 by $0.04. The firm earned $3.18 billion during the quarter, compared to analysts’ expectations of $3.13 billion. Ross Stores had a net margin of 8.55% and a return on equity of 42.01%. Ross Stores’s revenue for the quarter was up 7.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.63 EPS. On average, analysts forecast that Ross Stores will post $2.75 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Friday, September 2nd were paid a $0.135 dividend. The ex-dividend date of this dividend was Wednesday, August 31st. This represents a $0.54 dividend on an annualized basis and a dividend yield of 0.84%. Ross Stores’s dividend payout ratio (DPR) is presently 20.53%.
In other news, insider James S. Fassio sold 12,000 shares of the company’s stock in a transaction dated Thursday, September 22nd. The shares were sold at an average price of $63.35, for a total value of $760,200.00. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director George Orban sold 56,000 shares of the company’s stock in a transaction dated Friday, July 8th. The shares were sold at an average price of $57.52, for a total transaction of $3,221,120.00. Following the completion of the sale, the director now owns 506,750 shares in the company, valued at approximately $29,148,260. The disclosure for this sale can be found here. 2.40% of the stock is currently owned by insiders.
Large investors have recently modified their holdings of the stock. Evercore Wealth Management LLC raised its stake in shares of Ross Stores by 29.1% in the second quarter. Evercore Wealth Management LLC now owns 1,929 shares of the apparel retailer’s stock worth $109,000 after buying an additional 435 shares during the period. NN Investment Partners Holdings N.V. bought a new stake in shares of Ross Stores during the first quarter worth about $140,000. Carroll Financial Associates Inc. raised its stake in shares of Ross Stores by 0.7% in the second quarter. Carroll Financial Associates Inc. now owns 2,605 shares of the apparel retailer’s stock worth $147,000 after buying an additional 17 shares during the period. Independent Portfolio Consultants Inc. bought a new stake in shares of Ross Stores during the second quarter worth about $151,000. Finally, Citizens Financial Group Inc RI raised its stake in shares of Ross Stores by 51.6% in the first quarter. Citizens Financial Group Inc RI now owns 2,737 shares of the apparel retailer’s stock worth $159,000 after buying an additional 931 shares during the period. Institutional investors and hedge funds own 90.21% of the company’s stock.
Ross Stores Company Profile
Ross Stores, Inc is an off-price retailer of name brand and designer apparel, accessories, footwear, and home fashions for the entire family. The Company operates two brands of off-price retail apparel and home fashion stores, Ross Dress for Less (Ross) and dd’s DISCOUNTS. As of December 31, 2014, the Company operated 1,210 Ross locations in 33 states, the District of Columbia and Guam, and 152 dd’s DISCOUNTS stores in 15 states.
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