Wells Fargo & Company Issues Pessimistic Forecast for Ross Stores (NASDAQ:ROST) Stock Price

Key Points

• Wells Fargo cut its Ross Stores price target to $242 from $248 while maintaining an “equal weight” rating, implying 3.82% upside from the cited share price of $233.10.
• Analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $277.39, despite Wells Fargo’s more cautious view.
• Ross Stores beat quarterly estimates, reporting EPS of $2.66 versus $1.95 expected and revenue of $6.26 billion, up 13.3% year over year.

Ross Stores (NASDAQ:ROST - Get Free Report) had its price target cut by investment analysts at Wells Fargo & Company from $248.00 to $242.00 in a research report issued on Friday, Benzinga reports. The brokerage presently has an "equal weight" rating on the apparel retailer's stock. Wells Fargo & Company's price target would indicate a potential upside of 3.82% from the stock's current price.

Several other equities analysts also recently weighed in on the stock. Deutsche Bank reiterated a "buy" rating and issued a $294.00 target price on shares of Ross Stores in a research note on Friday, August 21st. Evercore set a $290.00 price target on shares of Ross Stores in a research note on Friday, August 21st. Bank of America cut their price objective on shares of Ross Stores from $265.00 to $258.00 and set a "buy" rating for the company in a report on Tuesday, October 27th. Barclays raised their price objective on shares of Ross Stores from $260.00 to $298.00 and gave the stock an "overweight" rating in a report on Friday, August 21st. Finally, Wolfe Research assumed coverage on shares of Ross Stores in a research note on Wednesday, October 21st. They issued an "outperform" rating and a $279.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Ross Stores presently has an average rating of "Moderate Buy" and a consensus target price of $277.39.

Ross Stores Stock Performance

Shares of NASDAQ ROST traded down $4.14 during trading on Friday, reaching $233.10. 290,092 shares of the stock traded hands, compared to its average volume of 2,576,737. 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 current ratio of 1.61 and a quick ratio of 0.98. The company has a 50-day moving average of $231.64 and a 200-day moving average of $224.12. The stock has a market capitalization of $74.46 billion, a P/E ratio of 28.21, a price-to-earnings-growth ratio of 2.15 and a beta of 0.85.

Ross Stores (NASDAQ:ROST - Get Free Report) last announced its quarterly earnings data on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share 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 company had revenue of $6.26 billion during the quarter, compared to analyst estimates of $6.16 billion. During the same quarter last year, the firm posted $1.56 EPS. The firm's revenue for the quarter was up 13.3% on a year-over-year basis. Analysts forecast that Ross Stores will post 8.15 EPS for the current fiscal year.

Insider Activity

In other news, CEO James Conroy sold 49,205 shares of the company's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $229.48, for a total value of $11,291,563.40. Following the completion of the transaction, the chief executive officer directly owned 134,349 shares in the company, valued at approximately $30,830,408.52. This represents a 26.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Stephen Brinkley sold 6,424 shares of the stock in a transaction dated 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 transaction, the insider owned 51,665 shares in the company, valued at $11,865,383.90. This trade represents a 11.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Xcelsior Advisor Partners LLC bought a new position in shares of Ross Stores during the 3rd quarter valued at about $213,000. Meeder Advisory Services Inc. grew its position in shares of Ross Stores by 13.8% during the third quarter. Meeder Advisory Services Inc. now owns 13,170 shares of the apparel retailer's stock valued at $3,074,000 after purchasing an additional 1,594 shares in the last quarter. NWK Group Inc. grew its position in shares of Ross Stores by 0.3% during the third quarter. NWK Group Inc. now owns 24,601 shares of the apparel retailer's stock valued at $5,742,000 after purchasing an additional 79 shares in the last quarter. State Street Corp increased its holdings in shares of Ross Stores by 3.8% in the third quarter. State Street Corp now owns 15,193,400 shares of the apparel retailer's stock worth $3,546,140,000 after purchasing an additional 549,744 shares during the last quarter. Finally, E Fund Management Hong Kong Co. Ltd. increased its holdings in shares of Ross Stores by 52.5% in the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 2,721 shares of the apparel retailer's stock worth $635,000 after purchasing an additional 937 shares during the last quarter. 86.86% of the stock is currently owned by institutional investors.

Ross Stores Company Profile

Ross Stores, Inc. is an off-price retailer operating Ross Dress for Less and dd's DISCOUNTS. Its stores offer name-brand and designer merchandise at discounted prices, with product selection and availability varying by location and season. Ross Dress for Less sells apparel, footwear, accessories, home fashions, furnishings, and other merchandise for the whole family. dd's DISCOUNTS offers a similar off-price assortment, including clothing, shoes, home goods, and related products. The company traces its origins to a department store founded in San Bruno, California, in 1950.

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