Franklin Resources Inc. Lowers Holdings in Ross Stores, Inc. $ROST

Key Points

• Franklin Resources reduced its Ross Stores stake by 24.3% in the fourth quarter, selling 747,031 shares and leaving it with 2.33 million shares valued at about $419.4 million.
• Ross Stores reported strong quarterly results, with EPS of $2.02 beating estimates and revenue of $6.01 billion topping expectations; revenue rose 20.6% year over year.
• The company also announced a quarterly dividend of $0.445 per share, while analysts remain mostly positive with an average rating of “Moderate Buy” and an average price target of $233.18.

Franklin Resources Inc. cut its stake in Ross Stores, Inc. (NASDAQ:ROST - Free Report) by 24.3% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 2,328,396 shares of the apparel retailer's stock after selling 747,031 shares during the quarter. Franklin Resources Inc. owned approximately 0.72% of Ross Stores worth $419,437,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in ROST. Somerset Trust Co increased its holdings in shares of Ross Stores by 0.4% during the 4th quarter. Somerset Trust Co now owns 14,788 shares of the apparel retailer's stock valued at $2,664,000 after purchasing an additional 55 shares in the last quarter. Independent Advisor Alliance increased its holdings in Ross Stores by 1.7% in the fourth quarter. Independent Advisor Alliance now owns 3,309 shares of the apparel retailer's stock valued at $596,000 after buying an additional 55 shares in the last quarter. CYBER HORNET ETFs LLC raised its position in shares of Ross Stores by 6.1% in the fourth quarter. CYBER HORNET ETFs LLC now owns 954 shares of the apparel retailer's stock worth $172,000 after acquiring an additional 55 shares during the period. Florida Trust Wealth Management Co boosted its stake in shares of Ross Stores by 1.7% during the 4th quarter. Florida Trust Wealth Management Co now owns 3,399 shares of the apparel retailer's stock worth $612,000 after acquiring an additional 56 shares in the last quarter. Finally, MCF Advisors LLC boosted its stake in shares of Ross Stores by 4.6% during the 4th quarter. MCF Advisors LLC now owns 1,292 shares of the apparel retailer's stock worth $233,000 after acquiring an additional 57 shares in the last quarter. Institutional investors and hedge funds own 86.86% of the company's stock.

Ross Stores Trading Down 1.3%

ROST opened at $227.42 on Tuesday. The business's 50 day moving average price is $223.30 and its 200 day moving average price is $202.64. 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 $72.95 billion, a PE ratio of 31.76, a P/E/G ratio of 2.59 and a beta of 0.86. Ross Stores, Inc. has a one year low of $124.49 and a one year high of $237.41.

Ross Stores (NASDAQ:ROST - Get Free Report) last issued its quarterly earnings data on Thursday, May 21st. The apparel retailer reported $2.02 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.73 by $0.29. The firm had revenue of $6.01 billion during the quarter, compared to the consensus estimate of $5.64 billion. Ross Stores had a return on equity of 38.42% and a net margin of 9.74%.The company's quarterly revenue was up 20.6% on a year-over-year basis. During the same period last year, the company earned $1.47 EPS. 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. As a group, equities research analysts expect that Ross Stores, Inc. will post 7.73 EPS for the current year.

Ross Stores Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 9th will be issued a $0.445 dividend. This represents a $1.78 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Tuesday, June 9th. Ross Stores's payout ratio is currently 24.86%.

Analyst Upgrades and Downgrades

ROST has been the subject of a number of recent analyst reports. Zacks Research upgraded Ross Stores from a "hold" rating to a "strong-buy" rating in a research report on Friday, May 22nd. Guggenheim reaffirmed a "buy" rating and issued a $290.00 price target on shares of Ross Stores in a research note on Monday, April 27th. Truist Financial raised their target price on Ross Stores from $270.00 to $290.00 and gave the company a "buy" rating in a research report on Friday, May 22nd. JPMorgan Chase & Co. increased their price objective on Ross Stores from $248.00 to $251.00 and gave the company an "overweight" rating in a research note on Monday, May 18th. Finally, UBS Group upped their target price on shares of Ross Stores from $227.00 to $232.00 and gave the stock a "neutral" rating in a report on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $233.18.

Insider Activity

In related news, COO Michael J. Hartshorn sold 15,813 shares of the stock in a transaction dated Wednesday, March 25th. The stock was sold at an average price of $214.91, for a total transaction of $3,398,371.83. Following the transaction, the chief operating officer owned 116,028 shares of the company's stock, valued at approximately $24,935,577.48. This represents a 11.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CMO Karen Sykes sold 5,506 shares of Ross Stores stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $213.40, for a total value of $1,174,980.40. Following the completion of the transaction, the chief marketing officer directly owned 104,648 shares of the company's stock, valued at approximately $22,331,883.20. This represents a 5.00% 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 corporate insiders.

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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