Alcosta Capital Management Inc. Purchases New Stake in Ross Stores, Inc. $ROST

Key Points

• Alcosta Capital Management opened a new position in Ross Stores in the first quarter, buying 14,238 shares worth about $3.08 million. The stake represents 2.4% of Alcosta’s portfolio and is now its 20th-largest holding.
• Ross Stores reported strong quarterly results, posting EPS of $2.02 versus estimates of $1.73 and revenue of $6.01 billion, up 20.6% year over year. The company also lifted guidance, projecting FY 2026 EPS of $7.50 to $7.74.
• The stock has attracted continued Wall Street support, with multiple analysts maintaining buy ratings and a consensus target price of $233.18. Ross also paid a quarterly dividend of $0.445, for an annualized yield of about 0.8%.

Alcosta Capital Management Inc. acquired a new position in Ross Stores, Inc. (NASDAQ:ROST - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 14,238 shares of the apparel retailer's stock, valued at approximately $3,084,000. Ross Stores makes up 2.4% of Alcosta Capital Management Inc.'s portfolio, making the stock its 20th largest position.

Other institutional investors have also recently bought and sold shares of the company. Thurston Springer Miller Herd & Titak Inc. raised its holdings in shares of Ross Stores by 7,000.0% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 142 shares of the apparel retailer's stock worth $26,000 after acquiring an additional 140 shares in the last quarter. Hilton Head Capital Partners LLC acquired a new stake in Ross Stores during the fourth quarter valued at $26,000. Bard Associates Inc. purchased a new position in Ross Stores in the fourth quarter valued at about $31,000. City Holding Co. increased its holdings in Ross Stores by 1,080.0% in the fourth quarter. City Holding Co. now owns 177 shares of the apparel retailer's stock worth $32,000 after buying an additional 162 shares during the last quarter. Finally, Virtus Advisers LLC acquired a new position in Ross Stores in the fourth quarter worth approximately $32,000. 86.86% of the stock is currently owned by institutional investors and hedge funds.

Ross Stores Price Performance

NASDAQ ROST opened at $232.39 on Friday. Ross Stores, Inc. has a twelve month low of $134.37 and a twelve month high of $242.81. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.94 and a current ratio of 1.54. The stock has a market capitalization of $74.55 billion, a PE ratio of 32.46, a P/E/G ratio of 2.68 and a beta of 0.87. The stock has a 50-day simple moving average of $225.91 and a 200 day simple moving average of $213.67.

Ross Stores (NASDAQ:ROST - Get Free Report) last released its earnings results on Thursday, May 21st. The apparel retailer reported $2.02 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.73 by $0.29. Ross Stores had a return on equity of 38.42% and a net margin of 9.74%.The firm had revenue of $6.01 billion for the quarter, compared to analyst estimates of $5.64 billion. During the same quarter last year, the firm posted $1.47 EPS. The company's revenue was up 20.6% on a year-over-year basis. Ross Stores has set its FY 2026 guidance at 7.500-7.740 EPS and its Q2 2026 guidance at 1.850-1.930 EPS. Research analysts anticipate that Ross Stores, Inc. will post 7.74 EPS for the current year.

Ross Stores Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 9th were paid a $0.445 dividend. This represents a $1.78 annualized dividend and a dividend yield of 0.8%. The ex-dividend date was Tuesday, June 9th. Ross Stores's dividend payout ratio (DPR) is presently 24.86%.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on ROST shares. The Goldman Sachs Group reaffirmed a "buy" rating and set a $270.00 price objective on shares of Ross Stores in a research report on Friday, May 22nd. Barclays boosted their target price on shares of Ross Stores from $242.00 to $260.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 26th. UBS Group restated a "neutral" rating on shares of Ross Stores in a report on Wednesday, June 10th. Weiss Ratings restated a "buy (b)" rating on shares of Ross Stores in a report on Monday, July 6th. Finally, Guggenheim reiterated a "buy" rating and set a $290.00 price target on shares of Ross Stores in a research note on Monday, April 27th. One 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 company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $233.18.

About Ross Stores

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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