Ross Stores (NASDAQ:ROST) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Ross Stores to “strong buy” from “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $263.76.
• Ross Stores reported a strong quarter, with adjusted earnings of $2.66 per share beating estimates by $0.71 and revenue rising 13.3% year over year to $6.26 billion.
• The stock opened at $225.53, while company insiders recently sold shares, including CEO James Conroy’s $11.3 million transaction; institutional investors own 86.86% of the stock.

Ross Stores (NASDAQ:ROST - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

Several other research firms have also commented on ROST. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $294.00 price target on shares of Ross Stores in a research report on Friday, August 21st. Truist Financial raised their price objective on shares of Ross Stores from $290.00 to $310.00 and gave the stock a "buy" rating in a report on Friday, August 21st. Weiss Ratings restated a "buy (b)" rating on shares of Ross Stores in a research report on Friday, October 2nd. Jefferies Financial Group upped their target price on shares of Ross Stores from $265.00 to $285.00 and gave the company a "buy" rating in a report on Friday, August 21st. Finally, Barclays increased their price target on shares of Ross Stores from $260.00 to $298.00 and gave the stock an "overweight" rating in a research report on Friday, August 21st. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $263.76.

Ross Stores Stock Performance

ROST stock opened at $225.53 on Tuesday. The company has a market cap of $72.05 billion, a P/E ratio of 27.30, a price-to-earnings-growth ratio of 1.88 and a beta of 0.83. Ross Stores has a 1 year low of $147.49 and a 1 year high of $257.00. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.61 and a quick ratio of 0.98. The stock's fifty day moving average price is $236.20 and its 200-day moving average price is $228.78.

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, beating analysts' consensus estimates of $1.95 by $0.71. Ross Stores had a return on equity of 39.29% and a net margin of 10.85%.The company had revenue of $6.26 billion during the quarter, compared to analysts' expectations of $6.16 billion. During the same quarter in the prior year, the business earned $1.56 earnings per share. Ross Stores's revenue for the quarter was up 13.3% compared to the same quarter last year. On average, equities analysts forecast that Ross Stores will post 8.15 earnings per share for the current year.

Insider Activity at Ross Stores

In other Ross Stores news, insider Stephen Brinkley sold 6,424 shares of the firm'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 transaction of $1,475,335.84. Following the sale, the insider owned 51,665 shares in the company, valued at approximately $11,865,383.90. This trade represents a 11.06% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 transaction, the chief executive officer directly owned 134,349 shares in the company, valued at $30,830,408.52. This represents a 26.81% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Greenleaf Trust boosted its holdings in shares of Ross Stores by 0.9% during the second quarter. Greenleaf Trust now owns 6,026 shares of the apparel retailer's stock worth $1,283,000 after purchasing an additional 51 shares during the period. Cooper Financial Group grew its position in Ross Stores by 2.8% during the second quarter. Cooper Financial Group now owns 1,919 shares of the apparel retailer's stock valued at $409,000 after purchasing an additional 52 shares in the last quarter. RFG Advisory LLC increased its stake in Ross Stores by 3.8% in the 2nd quarter. RFG Advisory LLC now owns 1,430 shares of the apparel retailer's stock valued at $304,000 after buying an additional 52 shares during the period. Eastern Bank lifted its position in Ross Stores by 0.5% in the 3rd quarter. Eastern Bank now owns 10,557 shares of the apparel retailer's stock worth $2,464,000 after buying an additional 57 shares in the last quarter. Finally, Caxton Associates LLP lifted its position in Ross Stores by 4.3% in the 1st quarter. Caxton Associates LLP now owns 1,421 shares of the apparel retailer's stock worth $308,000 after buying an additional 58 shares in the last quarter. Hedge funds and other institutional investors own 86.86% of the company's stock.

About Ross Stores

Ross Stores, Inc is an American off-price apparel and home fashion retailer headquartered in Dublin, California. The company operates primarily through its Ross Dress for Less stores, offering customers discounted prices on clothing, footwear, accessories, and home furnishings from a range of national and private-label brands.

Ross Stores also operates dd's DISCOUNTS, a chain focused on value-oriented merchandise for families and communities seeking lower-priced apparel, footwear, accessories, and home products.

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