Asset Management One Co. Ltd. Acquires 13,901 Shares of Ross Stores, Inc. $ROST

Key Points

• Asset Management One increased its Ross Stores stake by 8.2% in the third quarter, acquiring 13,901 shares for a total holding of 183,942 shares valued at approximately $42.9 million. Institutional investors collectively own 86.86% of the company.
• Ross Stores reported stronger-than-expected quarterly results, with EPS of $2.66 versus the $1.95 consensus estimate and revenue of $6.26 billion, up 13.3% year over year.
• Analyst sentiment remains favorable, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $272.06; however, valuation near 28 times earnings and recent insider selling remain potential concerns.

Asset Management One Co. Ltd. increased its stake in shares of Ross Stores, Inc. (NASDAQ:ROST - Free Report) by 8.2% during the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 183,942 shares of the apparel retailer's stock after acquiring an additional 13,901 shares during the period. Asset Management One Co. Ltd. owned about 0.06% of Ross Stores worth $42,932,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also bought and sold shares of the company. BlackRock Inc. acquired a new position in Ross Stores in the 2nd quarter valued at about $5,938,711,000. State Street Corp raised its stake in Ross Stores by 5.3% in the second quarter. State Street Corp now owns 14,643,656 shares of the apparel retailer's stock valued at $3,116,902,000 after purchasing an additional 734,009 shares in the last quarter. Bank of America Corp DE acquired a new position in shares of Ross Stores in the 2nd quarter valued at approximately $2,024,203,000. Primecap Management Co. CA acquired a new position in Ross Stores during the second quarter valued at approximately $1,937,995,000. Finally, Wellington Management Group LLP raised its holdings in shares of Ross Stores by 89.2% during 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 buying an additional 3,118,591 shares in the last quarter. Institutional investors own 86.86% of the company's stock.

Insiders Place Their Bets

In other Ross Stores news, insider Stephen Brinkley sold 6,424 shares of Ross Stores 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 sale, the insider owned 51,665 shares of the company's stock, valued at approximately $11,865,383.90. The trade was a 11.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO James Conroy sold 49,205 shares of the firm's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $229.48, for a total transaction of $11,291,563.40. Following the sale, the chief executive officer owned 134,349 shares of the company's stock, valued at approximately $30,830,408.52. The trade was a 26.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 2.10% of the company's stock.

Ross Stores Price Performance

Shares of NASDAQ:ROST opened at $227.98 on Thursday. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.98 and a current ratio of 1.61. Ross Stores, Inc. has a 52 week low of $157.39 and a 52 week high of $257.00. The firm has a market cap of $72.83 billion, a PE ratio of 27.60, a price-to-earnings-growth ratio of 1.93 and a beta of 0.83. The firm's fifty day moving average is $231.23 and its 200-day moving average is $221.68.

Ross Stores (NASDAQ:ROST - Get Free Report) last announced its earnings results on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share (EPS) 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 business had revenue of $6.26 billion during the quarter, compared to analyst estimates of $6.16 billion. During the same period last year, the company earned $1.56 EPS. Ross Stores's revenue for the quarter was up 13.3% compared to the same quarter last year. Sell-side analysts predict that Ross Stores, Inc. will post 8.15 earnings per share for the current year.

Ross Stores Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 8th were given a dividend of $0.4450 per share. The ex-dividend date of this dividend was Tuesday, September 8th. This represents a $1.78 annualized dividend and a dividend yield of 0.8%. Ross Stores's dividend payout ratio (DPR) is currently 21.55%.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Morgan Stanley upped their price objective on shares of Ross Stores from $231.00 to $234.00 and gave the stock an "equal weight" rating in a research report on Friday, August 21st. Evercore set a $290.00 target price on shares of Ross Stores in a research report on Friday, August 21st. Wolfe Research assumed coverage on shares of Ross Stores in a research note on Wednesday, October 21st. They set an "outperform" rating and a $279.00 target price on the stock. Wells Fargo & Company upped their price target on shares of Ross Stores from $245.00 to $248.00 and gave the stock an "equal weight" rating in a report on Friday, August 21st. Finally, UBS Group upgraded shares of Ross Stores from a "neutral" rating to a "buy" rating and upped their price target for the stock from $239.00 to $315.00 in a report on Monday. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Ross Stores has an average rating of "Moderate Buy" and an average price target of $272.06.

Ross Stores News Roundup

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

• Positive Sentiment: UBS upgraded Ross Stores to Buy from Neutral and set a Street-high $315 price target. The firm cited the retailer’s revenue-growth potential and resilience as an off-price operator during a challenging retail environment. UBS upgrades Ross Stores to buy from neutral
• Positive Sentiment: Bank of America reaffirmed its Buy rating. Although it reduced its target from $265 to $258, the new target still implies meaningful upside from recent levels, signaling continued confidence in Ross Stores’ earnings outlook. Bank of America reaffirms Buy rating
• Positive Sentiment: Analysts expect double-digit earnings-per-share growth in the upcoming third-quarter report. That expectation, along with favorable Zacks growth characteristics, supports the bullish case if Ross Stores delivers or exceeds estimates. Ross Stores next earnings expectations
• Neutral Sentiment: Some coverage suggests the stock trades at a premium to cash flow and that fair value is near recent trading levels, indicating investors may already be pricing in considerable operating strength. Ross Stores trades at a premium to cash flow
• Negative Sentiment: Valuation remains a concern. Ross Stores trades at roughly 28 times earnings, and recent insider selling could weigh on sentiment. The shares also recently declined even as the broader market advanced, suggesting investors may be taking profits or waiting for earnings confirmation. Why Ross Stores is defying the retail slump

Ross Stores Company Profile

Ross Stores, Inc is an off-price apparel and home fashion retailer headquartered in Dublin, California. The company operates primarily through its Ross Dress for Less stores, which offer branded and designer apparel, accessories, footwear, and home merchandise at discounts to regular department and specialty store prices.

Ross Stores also operates dd's DISCOUNTS, a chain focused on value-oriented apparel, accessories, footwear, and home products. Both retail formats generally purchase merchandise opportunistically from manufacturers, department stores, and other suppliers, allowing the company to offer changing assortments and discounted prices.

Founded in 1950, Ross Stores serves customers across the United States through its store network and e-commerce presence.

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