Ross Stores (NASDAQ:ROST) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Ross Stores from “buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $264.61.
• Ross Stores reported a strong quarter, with earnings per share of $2.66 beating estimates by $0.71 and revenue rising 13.3% year over year to $6.26 billion.
• Shares opened at $229.30, down 3.1%, while CEO James Conroy and another insider sold a combined 55,629 shares; institutional investors continue to own a substantial 86.86% stake.

Ross Stores (NASDAQ:ROST - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday, Wall Street Zen reports.

A number of other equities analysts have also recently commented on the company. Wells Fargo & Company raised their target price on Ross Stores from $245.00 to $248.00 and gave the company an "equal weight" rating in a report on Friday, August 21st. JPMorgan Chase & Co. upped their target price 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. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $294.00 target price on shares of Ross Stores in a report on Friday, August 21st. Citigroup raised their target price on shares of Ross Stores from $270.00 to $290.00 and gave the company a "buy" rating in a report on Friday, August 21st. Finally, Robert W. Baird lifted their price target on shares of Ross Stores from $250.00 to $270.00 and gave the stock an "outperform" rating in a research note on Friday, August 21st. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Ross Stores has an average rating of "Moderate Buy" and a consensus target price of $264.61.

Ross Stores Stock Down 3.1%

Shares of NASDAQ:ROST opened at $229.30 on Friday. The business has a 50-day moving average price of $231.44 and a 200 day moving average price of $230.04. 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 company has a market capitalization of $73.25 billion, a price-to-earnings ratio of 30.90, a PEG ratio of 1.99 and a beta of 0.83. Ross Stores has a 12-month low of $156.41 and a 12-month high of $257.00.

Ross Stores (NASDAQ:ROST - Get Free Report) last issued its quarterly earnings data on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.95 by $0.71. Ross Stores had a net margin of 10.85% and a return on equity of 39.29%. The firm had revenue of $6.26 billion for the quarter, compared to analyst estimates of $6.16 billion. During the same period in the previous year, the firm earned $1.56 EPS. Ross Stores's revenue was up 13.3% on a year-over-year basis. Sell-side analysts expect that Ross Stores will post 8.15 EPS for the current year.

Insiders Place Their Bets

In other Ross Stores 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 transaction of $11,291,563.40. Following the completion of the transaction, the chief executive officer owned 134,349 shares of the company's stock, valued at approximately $30,830,408.52. This trade represents a 26.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Stephen Brinkley sold 6,424 shares of the business's stock in a transaction on Monday, September 14th. The stock was 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 approximately $11,865,383.90. This trade 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 corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ROST. Virtus Advisers LLC acquired a new stake in shares of Ross Stores during the 2nd quarter worth about $38,000. Twin Lakes Capital Management LLC purchased a new stake in shares of Ross Stores during the second quarter worth about $41,000. Bell Investment Advisors Inc purchased a new stake in shares of Ross Stores during the second quarter worth about $43,000. BOK Financial Private Wealth Inc. acquired a new position in shares of Ross Stores in the second quarter valued at approximately $44,000. Finally, Elevation Wealth Partners LLC raised its position in shares of Ross Stores by 402.4% in the second quarter. Elevation Wealth Partners LLC now owns 211 shares of the apparel retailer's stock valued at $45,000 after buying an additional 169 shares during the last quarter. Institutional investors and hedge funds own 86.86% of the company's stock.

Ross Stores Company Profile

Ross Stores, Inc is an off-price apparel and home fashion retailer headquartered in Dublin, California. The company operates primarily through its Ross Dress for Less stores, which offer branded and designer apparel, accessories, footwear, and home merchandise at discounts to regular department and specialty store prices.

Ross Stores also operates dd's DISCOUNTS, a chain focused on value-oriented apparel, accessories, footwear, and home products. Both retail formats generally purchase merchandise opportunistically from manufacturers, department stores, and other suppliers, allowing the company to offer changing assortments and discounted prices.

Founded in 1950, Ross Stores serves customers across the United States through its store network and e-commerce presence.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.