Ross Stores (NASDAQ:ROST) Stock Rating Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded Ross Stores from “strong buy” to “hold.” Despite the cut, analyst consensus remains “Moderate Buy,” with a $272.06 average price target.
• Ross Stores reported quarterly EPS of $2.66, beating the $1.95 consensus estimate, while revenue rose 13.3% year over year to $6.26 billion.
• The stock opened at $235.23 and has traded between $157.73 and $257.00 over the past 52 weeks.

Ross Stores (NASDAQ:ROST - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Wednesday, Zacks reports.

Other equities research analysts have also recently issued research reports about the stock. JPMorgan Chase & Co. raised 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. Wolfe Research started coverage on shares of Ross Stores in a research report on Wednesday, October 21st. They issued an "outperform" rating and a $279.00 price target for the company. Wall Street Zen upgraded shares of Ross Stores from a "hold" rating to a "buy" rating in a research report on Sunday, November 1st. UBS Group raised shares of Ross Stores from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $239.00 to $315.00 in a research note on Monday, October 26th. Finally, Robert W. Baird raised their price objective on shares of Ross Stores from $250.00 to $270.00 and gave the company an "outperform" rating in a research report on Friday, August 21st. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $272.06.

Ross Stores Stock Performance

NASDAQ:ROST opened at $235.23 on Wednesday. The stock has a 50-day simple moving average of $230.87 and a two-hundred day simple moving average of $222.92. Ross Stores has a 52-week low of $157.73 and a 52-week high of $257.00. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.98 and a current ratio of 1.61. The firm has a market capitalization of $75.14 billion, a PE ratio of 28.48, a P/E/G ratio of 2.19 and a beta of 0.85.

Ross Stores (NASDAQ:ROST - Get Free Report) last posted its quarterly earnings data on Thursday, August 20th. The apparel retailer reported $2.66 EPS for the quarter, topping the consensus estimate of $1.95 by $0.71. Ross Stores had a return on equity of 39.29% and a net margin of 10.85%. The firm had revenue of $6.26 billion for the quarter, compared to the consensus estimate of $6.16 billion. During the same quarter last year, the company earned $1.56 earnings per share. The business's revenue for the quarter was up 13.3% compared to the same quarter last year. Analysts forecast that Ross Stores will post 8.15 EPS for the current year.

Insider Activity at Ross Stores

In other Ross Stores news, insider Stephen C. 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 transaction of $1,475,335.84. Following the completion of the sale, the insider directly owned 51,665 shares of the company's stock, valued at $11,865,383.90. This trade represents a 11.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO James Conroy sold 49,205 shares of Ross Stores 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 sale, the chief executive officer owned 134,349 shares in the company, valued at approximately $30,830,408.52. The trade was a 26.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Ross Stores

Institutional investors have recently bought and sold shares of the stock. Tortoise Investment Management LLC purchased a new position in Ross Stores during the 3rd quarter valued at about $201,000. Eurizon Capital SGR S.p.A. raised its holdings in shares of Ross Stores by 24.7% in the 3rd quarter. Eurizon Capital SGR S.p.A. now owns 732,995 shares of the apparel retailer's stock valued at $171,299,000 after purchasing an additional 144,963 shares in the last quarter. PBU The Pension Fund of Early Childhood & Youth Educators raised its holdings in shares of Ross Stores by 9.1% in the 3rd quarter. PBU The Pension Fund of Early Childhood & Youth Educators now owns 117,128 shares of the apparel retailer's stock valued at $27,338,000 after purchasing an additional 9,734 shares in the last quarter. Maryland State Retirement & Pension System raised its holdings in shares of Ross Stores by 12.0% in the 3rd quarter. Maryland State Retirement & Pension System now owns 19,307 shares of the apparel retailer's stock valued at $4,506,000 after purchasing an additional 2,068 shares in the last quarter. Finally, Advisor Resource Council lifted its position in shares of Ross Stores by 3.9% in the 3rd quarter. Advisor Resource Council now owns 1,512 shares of the apparel retailer's stock worth $342,000 after purchasing an additional 57 shares during the period. 86.86% of the stock is owned by hedge funds and other institutional investors.

About Ross Stores

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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