Ross Stores, Inc. (NASDAQ:ROST) Stock Has Consensus Price Target of $263.76

Key Points

• Analysts remain broadly positive: Ross Stores has a “Moderate Buy” consensus from 21 analysts, with an average 12-month price target of $263.76 versus a recent price of $225.84.
• Recent results exceeded expectations: The company reported quarterly EPS of $2.66, ahead of the $1.95 consensus, while revenue rose 13.3% year over year to $6.26 billion.
• Institutional ownership is substantial, at 86.86%, although CEO James Conroy and insider Stephen Brinkley recently sold shares. Ross Stores also pays a quarterly dividend of $0.445, implying a 0.8% annual yield.

Shares of Ross Stores, Inc. (NASDAQ:ROST - Get Free Report) have earned an average rating of "Moderate Buy" from the twenty-one analysts that are currently covering the company, MarketBeat.com reports. Five research analysts have rated the stock with a hold recommendation, fifteen have issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $263.76.

Several research firms have weighed in on ROST. Weiss Ratings reiterated a "buy (b)" rating on shares of Ross Stores in a research note on Friday, October 2nd. Robert W. Baird upped their price target on shares of Ross Stores from $250.00 to $270.00 and gave the company an "outperform" rating in a report on Friday, August 21st. Barclays increased their price target on Ross Stores from $260.00 to $298.00 and gave the stock an "overweight" rating in a research report on Friday, August 21st. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $294.00 price objective on shares of Ross Stores in a research note on Friday, August 21st. Finally, Evercore set a $290.00 price objective on Ross Stores in a research note on Friday, August 21st.

Insider Activity at Ross Stores

In related news, insider Stephen Brinkley sold 6,424 shares of Ross Stores stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $229.66, for a total transaction of $1,475,335.84. Following the completion of the transaction, the insider directly owned 51,665 shares in the company, valued at approximately $11,865,383.90. This trade represents a 11.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO James Conroy sold 49,205 shares of the business's stock in a transaction that occurred on Monday, September 14th. The shares were 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 of the company's stock, valued at $30,830,408.52. The trade was a 26.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ross Stores

Several hedge funds have recently modified their holdings of ROST. Wellington Management Group LLP increased its holdings in Ross Stores by 89.2% in the 2nd quarter. Wellington Management Group LLP now owns 6,615,682 shares of the apparel retailer's stock worth $1,408,148,000 after acquiring an additional 3,118,591 shares in the last quarter. United Capital Financial Advisors LLC acquired a new position in Ross Stores during the second quarter worth $3,390,000. Ontario Teachers Pension Plan Board purchased a new position in Ross Stores during the second quarter valued at $34,867,000. NewEdge Advisors LLC lifted its holdings in Ross Stores by 40.6% during the second quarter. NewEdge Advisors LLC now owns 17,353 shares of the apparel retailer's stock valued at $3,694,000 after purchasing an additional 5,012 shares in the last quarter. Finally, Elevation Point Wealth Partners LLC lifted its holdings in Ross Stores by 459.5% during the first quarter. Elevation Point Wealth Partners LLC now owns 26,095 shares of the apparel retailer's stock valued at $5,653,000 after purchasing an additional 21,431 shares in the last quarter. 86.86% of the stock is owned by hedge funds and other institutional investors.

Ross Stores Stock Performance

Shares of Ross Stores stock opened at $225.84 on Tuesday. The company has a 50 day moving average price of $234.54 and a 200 day moving average price of $229.01. The firm has a market capitalization of $72.15 billion, a P/E ratio of 27.34, a PEG ratio of 1.87 and a beta of 0.83. The company has a quick ratio of 0.98, a current ratio of 1.61 and a debt-to-equity ratio of 0.12. Ross Stores has a 52 week low of $148.58 and a 52 week high of $257.00.

Ross Stores (NASDAQ:ROST - Get Free Report) last released its earnings results 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 net margin of 10.85% and a return on equity of 39.29%. The company had revenue of $6.26 billion for the quarter, compared to the consensus estimate of $6.16 billion. During the same quarter in the previous year, the firm earned $1.56 EPS. Ross Stores's revenue was up 13.3% compared to the same quarter last year. Sell-side analysts expect that Ross Stores will post 8.15 EPS for the current year.

Ross Stores Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 8th were paid a $0.4450 dividend. The ex-dividend date was Tuesday, September 8th. This represents a $1.78 dividend on an annualized basis and a dividend yield of 0.8%. Ross Stores's dividend payout ratio is presently 21.55%.

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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