Ross Stores (NASDAQ:ROST) Shares Gap Up Following Strong Earnings

Ross Stores, Inc. (NASDAQ:ROST)’s share price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $142.96, but opened at $153.29. Ross Stores shares last traded at $148.59, with a volume of 2,542,648 shares changing hands.

The apparel retailer reported $1.48 EPS for the quarter, topping analysts’ consensus estimates of $1.41 by $0.07. The business had revenue of $5.10 billion during the quarter, compared to analysts’ expectations of $5.15 billion. Ross Stores had a net margin of 9.95% and a return on equity of 42.42%. The business’s quarterly revenue was up 3.6% on a year-over-year basis. During the same period last year, the company posted $1.33 earnings per share.

Ross Stores Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 31st. Shareholders of record on Tuesday, December 10th will be paid a $0.3675 dividend. The ex-dividend date is Tuesday, December 10th. This represents a $1.47 dividend on an annualized basis and a yield of 1.01%. Ross Stores’s dividend payout ratio (DPR) is presently 23.15%.

Analyst Ratings Changes

A number of brokerages have recently weighed in on ROST. Barclays upped their target price on Ross Stores from $165.00 to $175.00 and gave the stock an “overweight” rating in a research report on Friday, August 23rd. Citigroup lowered shares of Ross Stores from a “buy” rating to a “neutral” rating and dropped their price objective for the company from $179.00 to $152.00 in a research note on Tuesday, November 12th. JPMorgan Chase & Co. raised their price objective on shares of Ross Stores from $171.00 to $173.00 and gave the company an “overweight” rating in a research note on Friday. Morgan Stanley upped their target price on shares of Ross Stores from $163.00 to $178.00 and gave the stock an “overweight” rating in a report on Friday, August 23rd. Finally, Guggenheim reaffirmed a “buy” rating and issued a $180.00 price target on shares of Ross Stores in a research report on Friday. Five equities research analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $171.69.

Insider Buying and Selling

In other Ross Stores news, Chairman Michael Balmuth sold 14,887 shares of the company’s stock in a transaction dated Thursday, September 5th. The shares were sold at an average price of $152.22, for a total transaction of $2,266,099.14. Following the sale, the chairman now directly owns 11,133 shares of the company’s stock, valued at $1,694,665.26. This represents a 57.21 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Michael J. Hartshorn sold 8,366 shares of Ross Stores stock in a transaction dated Monday, September 16th. The stock was sold at an average price of $155.64, for a total transaction of $1,302,084.24. Following the completion of the transaction, the chief operating officer now owns 103,049 shares of the company’s stock, valued at $16,038,546.36. The trade was a 7.51 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 72,138 shares of company stock valued at $11,093,051. 2.10% of the stock is owned by company insiders.

Institutional Trading of Ross Stores

Institutional investors have recently modified their holdings of the business. EntryPoint Capital LLC lifted its position in shares of Ross Stores by 154.5% during the first quarter. EntryPoint Capital LLC now owns 308 shares of the apparel retailer’s stock worth $45,000 after acquiring an additional 187 shares in the last quarter. CreativeOne Wealth LLC lifted its holdings in Ross Stores by 69.8% during the 1st quarter. CreativeOne Wealth LLC now owns 2,514 shares of the apparel retailer’s stock worth $369,000 after purchasing an additional 1,033 shares in the last quarter. Lazard Asset Management LLC boosted its stake in Ross Stores by 216.2% in the 1st quarter. Lazard Asset Management LLC now owns 72,808 shares of the apparel retailer’s stock worth $10,684,000 after purchasing an additional 49,784 shares during the period. Caxton Associates LP grew its holdings in Ross Stores by 67.7% during the 1st quarter. Caxton Associates LP now owns 8,537 shares of the apparel retailer’s stock valued at $1,253,000 after buying an additional 3,447 shares in the last quarter. Finally, Bayberry Capital Partners LP grew its holdings in Ross Stores by 21.0% during the 1st quarter. Bayberry Capital Partners LP now owns 121,000 shares of the apparel retailer’s stock valued at $17,758,000 after buying an additional 21,000 shares in the last quarter. 86.86% of the stock is currently owned by hedge funds and other institutional investors.

Ross Stores Stock Performance

The company has a 50-day moving average price of $145.14 and a two-hundred day moving average price of $144.62. The company has a quick ratio of 1.05, a current ratio of 1.56 and a debt-to-equity ratio of 0.30. The stock has a market capitalization of $48.47 billion, a P/E ratio of 23.01, a PEG ratio of 2.40 and a beta of 1.09.

Ross Stores Company Profile

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.