Advisors Capital Management LLC Makes New Investment in Ross Stores, Inc. $ROST

Key Points

• Advisors Capital Management initiated a 164,831-share Ross Stores position worth approximately $35.1 million, while institutional investors collectively own 86.86% of the company.
• Ross Stores reported a strong second quarter, with revenue rising 13.3% to $6.26 billion and EPS reaching $2.66 versus $1.56 a year earlier. The company also raised fiscal 2026 EPS guidance to $8.61–$8.77 and increased its store-opening plan to 115 locations.
• Despite the strong results, investors should note that roughly $253 million of operating income came from tariff refunds that may not recur, while the stock trades near its 52-week high at about 32 times earnings.

Advisors Capital Management LLC bought a new stake in Ross Stores, Inc. (NASDAQ:ROST - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 164,831 shares of the apparel retailer's stock, valued at approximately $35,084,000. Advisors Capital Management LLC owned approximately 0.05% of Ross Stores as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. Hilton Head Capital Partners LLC purchased a new position in shares of Ross Stores in the 4th quarter worth about $26,000. Bard Associates Inc. purchased a new stake in Ross Stores during the fourth quarter worth about $31,000. Virtus Advisers LLC bought a new stake in Ross Stores in the fourth quarter worth about $32,000. Fideuram Asset Management Ireland dac bought a new stake in Ross Stores in the fourth quarter worth about $38,000. Finally, Salomon & Ludwin LLC boosted its stake in Ross Stores by 89.0% in the fourth quarter. Salomon & Ludwin LLC now owns 223 shares of the apparel retailer's stock valued at $42,000 after acquiring an additional 105 shares during the last quarter. 86.86% of the stock is owned by hedge funds and other institutional investors.

Key Ross Stores News

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

• Positive Sentiment: Second-quarter sales increased 13.3% year over year to approximately $6.3 billion, while comparable-store sales rose 10% as customer traffic strengthened. Ross Stores Reports Strong Second Quarter Sales and Earnings Results
• Positive Sentiment: Reported diluted EPS reached $2.66, up sharply from $1.56 a year earlier and well above consensus estimates near $1.93-$1.94. Several reports characterized the quarter as a double beat on earnings and revenue. Ross Stores Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Ross raised fiscal 2026 EPS guidance to $8.61-$8.77, substantially above the approximately $7.31 consensus cited in the reports. Third-quarter guidance of $1.75-$1.83 and fourth-quarter guidance of $2.17-$2.26 also exceed consensus expectations. Ross Stores Raises Annual Profit Forecast Again
• Positive Sentiment: The company increased its fiscal-year store-opening plan to 115 locations after opening 47 stores during the quarter, supporting longer-term revenue growth.
• Neutral Sentiment: Ross declared its regular quarterly dividend of $0.445 per share, payable September 30 to shareholders of record September 8. The dividend provides ongoing shareholder returns but was not a major change to the investment outlook. Ross Stores Announces Quarterly Dividend
• Negative Sentiment: About $253 million of the quarter’s operating income came from IEEPA tariff refunds. Investors may discount some of the earnings upside because tariff-related benefits could be nonrecurring, leaving underlying margins and demand as key areas to monitor.
• Negative Sentiment: ROST remains near its 52-week high and trades at a relatively demanding valuation, making the stock vulnerable to profit-taking or disappointment even after a strong report. Pre-earnings options activity also showed elevated put demand and implied volatility.

Ross Stores Price Performance

ROST stock opened at $228.99 on Friday. The firm has a 50 day moving average of $233.83 and a 200-day moving average of $221.74. The company has a current ratio of 1.54, a quick ratio of 0.94 and a debt-to-equity ratio of 0.12. Ross Stores, Inc. has a 12 month low of $143.39 and a 12 month high of $257.00. The firm has a market capitalization of $73.46 billion, a P/E ratio of 31.98, a price-to-earnings-growth ratio of 2.61 and a beta of 0.86.

Ross Stores (NASDAQ:ROST - Get Free Report) last posted its earnings results on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share for the quarter, topping analysts' consensus estimates of $1.95 by $0.71. Ross Stores had a net margin of 9.74% and a return on equity of 38.42%. The business had revenue of $6.26 billion for the quarter, compared to analyst estimates of $6.16 billion. During the same quarter in the prior year, the firm posted $1.56 EPS. Ross Stores's revenue was up 13.3% on a year-over-year basis. As a group, sell-side analysts predict that Ross Stores, Inc. will post 7.81 earnings per share for the current fiscal year.

Ross Stores Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 8th will be given a dividend of $0.445 per share. This represents a $1.78 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Tuesday, September 8th. Ross Stores's payout ratio is 24.86%.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on ROST shares. UBS Group reissued a "buy" rating on shares of Ross Stores in a research report on Tuesday. Morgan Stanley set a $231.00 price objective on Ross Stores in a research note on Wednesday, August 5th. The Goldman Sachs Group reissued a "buy" rating and set a $270.00 price objective on shares of Ross Stores in a report on Friday, May 22nd. JPMorgan Chase & Co. raised their target price on Ross Stores from $248.00 to $251.00 and gave the stock an "overweight" rating in a research report on Monday, May 18th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Ross Stores in a research note on Monday, July 6th. Sixteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $244.76.

Ross Stores Company Profile

Ross Stores, Inc NASDAQ: ROST is an American off‑price retailer headquartered in Dublin, California, that operates the Ross Dress for Less and dd's DISCOUNTS store formats. The company sells a broad assortment of apparel, footwear, home fashions, accessories and other soft goods, positioning itself as a value-oriented destination for brand‑name and fashion merchandise at reduced prices.

Ross's business model centers on opportunistic buying of excess inventory, closeouts, cancelled orders and overstocks from manufacturers, department stores and other suppliers.

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