Ross Stores, Inc. $ROST Stock: Sterling Capital Management LLC Lowers Stake

Key Points

• Sterling Capital Management cut its Ross Stores stake by 59.5% in the third quarter, selling 25,123 shares and retaining 17,100 shares valued at approximately $3.99 million. Institutional investors collectively own 86.86% of the company.
• Ross Stores reported strong quarterly results, with earnings of $2.66 per share and revenue of $6.26 billion, beating analyst expectations and increasing revenue 13.3% year over year.
• Analyst sentiment remains positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $264.61. Ross Stores also maintains a quarterly dividend of $0.445 per share, yielding about 0.8%.

Sterling Capital Management LLC trimmed its stake in shares of Ross Stores, Inc. (NASDAQ:ROST - Free Report) by 59.5% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 17,100 shares of the apparel retailer's stock after selling 25,123 shares during the quarter. Sterling Capital Management LLC's holdings in Ross Stores were worth $3,991,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Wellington Management Group LLP boosted its stake in shares of Ross Stores by 89.2% in the 2nd quarter. Wellington Management Group LLP now owns 6,615,682 shares of the apparel retailer's stock valued at $1,408,148,000 after purchasing an additional 3,118,591 shares during the last quarter. United Capital Financial Advisors LLC acquired a new stake in shares of Ross Stores during the second quarter worth $3,390,000. NewEdge Advisors LLC raised its stake in Ross Stores by 40.6% during the second quarter. NewEdge Advisors LLC now owns 17,353 shares of the apparel retailer's stock worth $3,694,000 after buying an additional 5,012 shares during the last quarter. Ontario Teachers Pension Plan Board bought a new position in Ross Stores during the second quarter worth $34,867,000. Finally, Nicholas Investment Partners LP bought a new position in Ross Stores during the second quarter worth $2,559,000. 86.86% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Ross Stores

In other news, insider Stephen Brinkley sold 6,424 shares of the company's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $229.66, for a total transaction of $1,475,335.84. Following the transaction, the insider owned 51,665 shares in the company, valued at approximately $11,865,383.90. This represents a 11.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO James Conroy sold 49,205 shares of the stock in a transaction dated 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 transaction, the chief executive officer directly owned 134,349 shares in the company, valued at $30,830,408.52. This trade represents a 26.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 2.10% of the company's stock.

Ross Stores Price Performance

Ross Stores stock opened at $229.30 on Friday. The stock has a market capitalization of $73.25 billion, a price-to-earnings ratio of 27.76, a PEG ratio of 1.93 and a beta of 0.83. Ross Stores, Inc. has a 52-week low of $156.41 and a 52-week high of $257.00. The stock's 50 day moving average price is $231.44 and its two-hundred day moving average price is $230.04. 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 (NASDAQ:ROST - Get Free Report) last released its quarterly earnings data on Thursday, August 20th. The apparel retailer reported $2.66 earnings per share for the quarter, beating the consensus estimate of $1.95 by $0.71. Ross Stores had a net margin of 10.85% and a return on equity of 39.29%. The company had revenue of $6.26 billion during the quarter, compared to analyst estimates of $6.16 billion. During the same quarter in the previous year, the business posted $1.56 EPS. Ross Stores's revenue for the quarter was up 13.3% compared to the same quarter last year. On average, equities analysts predict that Ross Stores, Inc. will post 8.15 earnings per share for the current year.

Ross Stores Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 8th were paid a $0.4450 dividend. This represents a $1.78 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, September 8th. Ross Stores's payout ratio is 21.55%.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. Robert W. Baird boosted their target price on shares of Ross Stores from $250.00 to $270.00 and gave the company an "outperform" rating in a report on Friday, August 21st. UBS Group increased their price target on Ross Stores from $232.00 to $239.00 and gave the stock a "neutral" rating in a report on Friday, August 21st. Wall Street Zen downgraded Ross Stores from a "buy" rating to a "hold" rating in a report on Saturday. Truist Financial lifted their price objective on Ross Stores from $290.00 to $310.00 and gave the stock a "buy" rating in a research report on Friday, August 21st. Finally, Wolfe Research began coverage on Ross Stores in a research note on Wednesday. They issued an "outperform" rating and a $279.00 price objective on the stock. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Ross Stores presently has an average rating of "Moderate Buy" and an average target price of $264.61.

About Ross Stores

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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