Primecap Management Co. CA Trims Stake in Ross Stores, Inc. (NASDAQ:ROST)

Key Points

• Primecap Management Co. reduced its stake in Ross Stores, Inc. by 1.4%, owning approximately 10.2 million shares, which represent about 1.1% of its portfolio.
• Ross Stores reported quarterly earnings of $1.47 per share, exceeding analyst expectations, with a revenue of $4.98 billion, reflecting a 2.6% year-over-year increase.
• Several analysts have adjusted their price targets for Ross Stores, with a consensus target price of $159.06, reflecting a mixed outlook among different ratings.

Primecap Management Co. CA decreased its holdings in shares of Ross Stores, Inc. (NASDAQ:ROST - Free Report) by 1.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 10,216,935 shares of the apparel retailer's stock after selling 147,890 shares during the quarter. Ross Stores comprises 1.1% of Primecap Management Co. CA's holdings, making the stock its 27th largest holding. Primecap Management Co. CA owned approximately 3.11% of Ross Stores worth $1,305,622,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in ROST. Golden State Wealth Management LLC increased its holdings in Ross Stores by 50.7% in the 1st quarter. Golden State Wealth Management LLC now owns 217 shares of the apparel retailer's stock valued at $28,000 after purchasing an additional 73 shares during the last quarter. Bayforest Capital Ltd lifted its stake in Ross Stores by 372.5% during the first quarter. Bayforest Capital Ltd now owns 241 shares of the apparel retailer's stock worth $31,000 after purchasing an additional 190 shares in the last quarter. Tradewinds Capital Management LLC boosted its position in shares of Ross Stores by 36.6% during the first quarter. Tradewinds Capital Management LLC now owns 280 shares of the apparel retailer's stock worth $36,000 after buying an additional 75 shares during the period. Putney Financial Group LLC acquired a new stake in shares of Ross Stores in the fourth quarter valued at $44,000. Finally, Cary Street Partners Financial LLC acquired a new stake in shares of Ross Stores in the fourth quarter valued at $48,000. Institutional investors and hedge funds own 86.86% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on ROST shares. Wells Fargo & Company decreased their target price on Ross Stores from $155.00 to $150.00 and set an "overweight" rating on the stock in a research note on Friday, May 23rd. Telsey Advisory Group reissued a "market perform" rating and set a $150.00 price target on shares of Ross Stores in a research report on Friday, May 23rd. Wall Street Zen cut shares of Ross Stores from a "buy" rating to a "hold" rating in a report on Wednesday, May 21st. Evercore ISI cut their target price on shares of Ross Stores from $170.00 to $160.00 and set an "outperform" rating on the stock in a research note on Friday, May 23rd. Finally, JPMorgan Chase & Co. increased their target price on shares of Ross Stores from $154.00 to $156.00 and gave the stock an "overweight" rating in a report on Monday, July 28th. Five investment analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $159.06.

Ross Stores Stock Down 1.0%

NASDAQ:ROST traded down $1.40 during trading hours on Thursday, hitting $145.15. The company's stock had a trading volume of 2,107,077 shares, compared to its average volume of 2,450,395. Ross Stores, Inc. has a 52-week low of $122.36 and a 52-week high of $163.60. The company has a current ratio of 1.55, a quick ratio of 0.95 and a debt-to-equity ratio of 0.18. The stock has a market capitalization of $47.47 billion, a P/E ratio of 22.93, a price-to-earnings-growth ratio of 2.81 and a beta of 1.11. The stock has a fifty day moving average of $134.52 and a 200-day moving average of $137.38.

Ross Stores (NASDAQ:ROST - Get Free Report) last released its quarterly earnings data on Thursday, May 22nd. The apparel retailer reported $1.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.44 by $0.03. Ross Stores had a return on equity of 38.77% and a net margin of 9.79%. The business had revenue of $4.98 billion during the quarter, compared to analysts' expectations of $4.94 billion. During the same period in the prior year, the firm posted $1.46 EPS. The business's quarterly revenue was up 2.6% compared to the same quarter last year. On average, equities analysts forecast that Ross Stores, Inc. will post 6.17 earnings per share for the current year.

Ross Stores Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Tuesday, June 10th were given a dividend of $0.405 per share. This represents a $1.62 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Tuesday, June 10th. Ross Stores's payout ratio is currently 25.59%.

Ross Stores Profile

Ross Stores, Inc, together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. Its stores primarily offer apparel, accessories, footwear, and home fashions. The company's Ross Dress for Less stores sell its products at department and specialty stores to middle income households; and dd's DISCOUNTS stores sell its products at department and discount stores for households with moderate income.