Diversified Trust Co. Raises Position in Ross Stores, Inc. $ROST

Key Points

• Diversified Trust Co. increased its stake in Ross Stores by 526.7% in Q4, acquiring 11,567 shares to own 13,763 shares worth about $2.48 million.
• Ross beat quarterly expectations—EPS $2.00 vs. $1.90 and revenue $6.64B vs. $6.42B (revenue +12.2% y/y)—and raised its quarterly dividend to $0.445 (annualized $1.78).
• Analyst sentiment is bullish: 16 Buy vs. 5 Hold ratings, a consensus target of $208.29, and several firms (Goldman, Wells Fargo, Guggenheim) recently lifted price targets.

Diversified Trust Co. increased its stake in Ross Stores, Inc. (NASDAQ:ROST - Free Report) by 526.7% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 13,763 shares of the apparel retailer's stock after purchasing an additional 11,567 shares during the quarter. Diversified Trust Co.'s holdings in Ross Stores were worth $2,479,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of ROST. American National Bank & Trust bought a new position in Ross Stores during the third quarter valued at $26,000. Grey Fox Wealth Advisors LLC bought a new stake in shares of Ross Stores in the third quarter valued at $29,000. E Fund Management Hong Kong Co. Ltd. lifted its position in shares of Ross Stores by 162.6% during the 3rd quarter. E Fund Management Hong Kong Co. Ltd. now owns 239 shares of the apparel retailer's stock valued at $36,000 after buying an additional 148 shares during the last quarter. Elevation Point Wealth Partners LLC purchased a new position in shares of Ross Stores during the 2nd quarter valued at $38,000. Finally, True Wealth Design LLC grew its stake in shares of Ross Stores by 152.0% during the 3rd quarter. True Wealth Design LLC now owns 257 shares of the apparel retailer's stock worth $39,000 after acquiring an additional 155 shares during the period. Hedge funds and other institutional investors own 86.86% of the company's stock.

Ross Stores Stock Up 1.3%

Shares of NASDAQ ROST opened at $215.80 on Wednesday. Ross Stores, Inc. has a 12 month low of $124.07 and a 12 month high of $216.80. The company has a current ratio of 1.58, a quick ratio of 1.04 and a debt-to-equity ratio of 0.16. The firm has a market capitalization of $69.80 billion, a price-to-earnings ratio of 32.65, a PEG ratio of 2.95 and a beta of 0.97. The business has a 50-day moving average of $199.26 and a 200-day moving average of $177.57.

Ross Stores (NASDAQ:ROST - Get Free Report) last announced its earnings results on Tuesday, March 3rd. The apparel retailer reported $2.00 earnings per share for the quarter, beating analysts' consensus estimates of $1.90 by $0.10. The business had revenue of $6.64 billion for the quarter, compared to the consensus estimate of $6.42 billion. Ross Stores had a net margin of 9.43% and a return on equity of 36.70%. Ross Stores's quarterly revenue was up 12.2% on a year-over-year basis. During the same period last year, the firm posted $1.65 earnings per share. Sell-side analysts expect that Ross Stores, Inc. will post 6.17 earnings per share for the current fiscal year.

Ross Stores Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be issued a $0.445 dividend. This represents a $1.78 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Friday, March 13th. This is a positive change from Ross Stores's previous quarterly dividend of $0.41. Ross Stores's payout ratio is currently 26.93%.

Analyst Ratings Changes

Several equities research analysts recently weighed in on ROST shares. Weiss Ratings reissued a "buy (b)" rating on shares of Ross Stores in a report on Friday, January 9th. Wells Fargo & Company upped their price objective on shares of Ross Stores from $205.00 to $235.00 and gave the company an "overweight" rating in a report on Wednesday, March 4th. The Goldman Sachs Group increased their target price on shares of Ross Stores from $214.00 to $244.00 and gave the stock a "buy" rating in a research report on Wednesday, March 4th. Guggenheim lifted their target price on shares of Ross Stores from $199.00 to $226.00 and gave the stock a "buy" rating in a research note on Wednesday, March 4th. Finally, UBS Group set a $208.00 price target on shares of Ross Stores in a research report on Thursday, March 5th. Sixteen investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, Ross Stores has an average rating of "Moderate Buy" and a consensus target price of $208.29.

Insider Buying and Selling at Ross Stores

In related news, Director Patricia H. Mueller sold 1,881 shares of the stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $213.13, for a total value of $400,897.53. Following the transaction, the director owned 2,159 shares of the company's stock, valued at $460,147.67. This represents a 46.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CMO Karen Sykes sold 2,556 shares of the firm's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $213.91, for a total value of $546,753.96. Following the sale, the chief marketing officer owned 103,945 shares in the company, valued at $22,234,874.95. The trade was a 2.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 2.20% of the company's stock.

Ross Stores 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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