Ross Stores (NASDAQ:ROST) Given New $258.00 Price Target at Bank of America

Key Points

• Bank of America lowered Ross Stores’ price target to $258 from $265 but maintained a Buy rating, implying approximately 12.5% upside from the stock’s $229.31 price.
• Analyst sentiment remains positive: Ross Stores has a “Moderate Buy” consensus rating and a consensus price target of $272.06, supported by recent quarterly EPS of $2.66 versus the $1.95 estimate and 13.3% year-over-year revenue growth.
• Shares trade near 28 times earnings, while recent insider sales—including the CEO’s sale of 49,205 shares—introduce a note of caution despite strong operating performance and institutional ownership of 86.86%.

Ross Stores (NASDAQ:ROST - Get Free Report) had its target price reduced by analysts at Bank of America from $265.00 to $258.00 in a report issued on Tuesday, Benzinga reports. The brokerage presently has a "buy" rating on the apparel retailer's stock. Bank of America's target price points to a potential upside of 12.51% from the stock's current price.

ROST has been the topic of a number of other research reports. Citigroup raised their target price on Ross Stores from $270.00 to $290.00 and gave the company a "buy" rating in a report on Friday, August 21st. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $294.00 price target on shares of Ross Stores in a report on Friday, August 21st. Weiss Ratings upgraded Ross Stores from a "buy (b)" rating to a "buy (a-)" rating in a research report on Friday, October 16th. Truist Financial upped their price objective on Ross Stores from $290.00 to $310.00 and gave the stock a "buy" rating in a research report on Friday, August 21st. Finally, Zacks Research raised Ross Stores from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, October 6th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $272.06.

Ross Stores Stock Performance

Shares of NASDAQ ROST traded down $4.80 during trading hours on Tuesday, reaching $229.31. 791,982 shares of the stock were exchanged, compared to its average volume of 2,600,434. The firm has a market capitalization of $73.25 billion, a price-to-earnings ratio of 27.81, a P/E/G ratio of 1.93 and a beta of 0.83. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.98 and a current ratio of 1.61. Ross Stores has a 52 week low of $157.39 and a 52 week high of $257.00. The stock's fifty day simple moving average is $231.73 and its 200 day simple moving average is $221.03.

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

Insider Activity

In other news, CEO James Conroy sold 49,205 shares of the business's stock in a transaction dated 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 sale, the chief executive officer directly owned 134,349 shares in the company, valued at approximately $30,830,408.52. The trade was a 26.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Stephen C. Brinkley sold 6,424 shares of the company's 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 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 position. The SEC filing for this sale provides additional information. 2.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ross Stores

A number of institutional investors have recently added to or reduced their stakes in ROST. Net Worth Advisory Group grew its holdings in Ross Stores by 4.2% during the third quarter. Net Worth Advisory Group now owns 1,047 shares of the apparel retailer's stock worth $245,000 after acquiring an additional 42 shares during the period. Greenleaf Trust lifted its holdings in Ross Stores by 0.9% in the second quarter. Greenleaf Trust now owns 6,026 shares of the apparel retailer's stock valued at $1,283,000 after acquiring an additional 51 shares during the period. Cooper Financial Group lifted its holdings in Ross Stores by 2.8% in the second quarter. Cooper Financial Group now owns 1,919 shares of the apparel retailer's stock valued at $409,000 after acquiring an additional 52 shares during the period. RFG Advisory LLC boosted its position in shares of Ross Stores by 3.8% during the 2nd quarter. RFG Advisory LLC now owns 1,430 shares of the apparel retailer's stock worth $304,000 after purchasing an additional 52 shares in the last quarter. Finally, Eastern Bank boosted its position in shares of Ross Stores by 0.5% during the 3rd quarter. Eastern Bank now owns 10,557 shares of the apparel retailer's stock worth $2,464,000 after purchasing an additional 57 shares in the last quarter. 86.86% of the stock is owned by institutional investors.

Trending Headlines about Ross Stores

Here are the key news stories impacting Ross Stores this week:

• Positive Sentiment: UBS upgraded ROST to Buy from Neutral and raised its price target to $315 from $239—the highest on Wall Street. UBS expects Ross to sustain stronger revenue growth than consensus forecasts as it improves store productivity and captures consumers shifting toward discount retailers. UBS Sees More Upside for Ross Stores Stock
• Positive Sentiment: UBS estimates approximately 8.5% revenue growth over the next two years, supported by merchandising improvements, stronger foot traffic, branded merchandise, and efforts to close a roughly 20% store-productivity gap with TJX Companies. Wolfe Research also initiated coverage with an Outperform rating. Ross Stores Marketing, Merchandising Push Underappreciated
• Positive Sentiment: Recent operating performance supports the bullish case. Ross reported quarterly EPS of $2.66 versus the $1.95 consensus estimate, while revenue increased 13.3% year over year to $6.26 billion. The company also completed a 51-store expansion and maintains a relatively conservative balance sheet, with a debt-to-equity ratio of 0.12.
• Neutral Sentiment: Ross’s off-price model may remain defensive if consumers continue trading down from full-price retailers. However, investors will need evidence that higher traffic, inventory productivity, and new stores can translate into sustained earnings growth. Off-Price, High-Yield: Why Ross Stores Is Defying the Retail Slump
• Negative Sentiment: Shares trade at nearly 28 times earnings after a strong advance, leaving limited room for execution mistakes or a slowdown in consumer demand. Recent insider selling, including CEO James Conroy’s sale of 49,205 shares, adds caution. Reports on short interest are inconsistent, with one report citing roughly 9.7 million shares and another incorrectly listing zero, so the short-interest signal should be treated carefully.

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.

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