Ross Stores (NASDAQ:ROST) Shares Cross Above Fifty Day Moving Average - Here's Why

Key Points

• Ross Stores shares rose above their 50-day moving average, reaching $237.98 and last trading at $234.11, compared with a 50-day average of $231.73.
• Analysts have become more bullish, with UBS upgrading the stock to “buy” and raising its target to $315; the consensus rating is “Moderate Buy” with a $268.83 target price.
• The company reported strong quarterly results, with EPS of $2.66 beating estimates by $0.71 and revenue increasing 13.3% year over year to $6.26 billion. Ross also declared a quarterly dividend of $0.445 per share, a 0.8% annualized yield.

Ross Stores, Inc. (NASDAQ:ROST - Get Free Report)'s share price crossed above its fifty day moving average during trading on Monday. The stock has a fifty day moving average of $231.73 and traded as high as $237.98. Ross Stores shares last traded at $234.11, with a volume of 2,082,810 shares traded.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on ROST shares. Truist Financial boosted their price objective on Ross Stores from $290.00 to $310.00 and gave the company a "buy" rating in a research note on Friday, August 21st. Sanford C. Bernstein upped their target price on Ross Stores from $230.00 to $240.00 and gave the company a "market perform" rating in a research report on Friday, August 21st. UBS Group raised Ross Stores from a "neutral" rating to a "buy" rating and raised their target price for the stock from $239.00 to $315.00 in a research note on Monday. Citigroup lifted their target price on Ross Stores from $270.00 to $290.00 and gave the stock a "buy" rating in a report on Friday, August 21st. Finally, Evercore set a $290.00 target price on Ross Stores in a report on Friday, August 21st. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $268.83.

Ross Stores Price Performance

The firm has a market capitalization of $74.79 billion, a P/E ratio of 28.34, a price-to-earnings-growth ratio of 1.93 and a beta of 0.83. The business has a 50-day moving average of $231.73 and a 200 day moving average of $221.03. The company has a current ratio of 1.61, a quick ratio of 0.98 and a debt-to-equity ratio of 0.12.

Ross Stores (NASDAQ:ROST - Get Free Report) last announced its quarterly 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 for the quarter, compared to analyst estimates of $6.16 billion. During the same quarter in the prior year, the company earned $1.56 earnings per share. The company's quarterly revenue was up 13.3% on a year-over-year basis. On average, sell-side analysts predict that Ross Stores, Inc. will post 8.15 earnings per share for the current fiscal year.

Ross Stores Announces Dividend

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

Insider Buying and Selling at Ross Stores

In other Ross Stores news, insider Stephen Brinkley sold 6,424 shares of the company's stock in a transaction on 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 transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO James Conroy sold 49,205 shares of the firm's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $229.48, for a total transaction of $11,291,563.40. Following the completion of 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Ross Stores

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Park Avenue Securities LLC increased its holdings in Ross Stores by 7.8% during the 3rd quarter. Park Avenue Securities LLC now owns 18,774 shares of the apparel retailer's stock worth $4,382,000 after purchasing an additional 1,356 shares in the last quarter. Verdence Capital Advisors LLC purchased a new stake in shares of Ross Stores in the third quarter worth approximately $388,000. Sigma Planning Corp raised its stake in shares of Ross Stores by 39.0% in the third quarter. Sigma Planning Corp now owns 7,523 shares of the apparel retailer's stock worth $1,756,000 after purchasing an additional 2,110 shares during the last quarter. IRON Financial LLC purchased a new stake in shares of Ross Stores in the third quarter worth approximately $980,000. Finally, Signaturefd LLC raised its stake in shares of Ross Stores by 1.4% in the third quarter. Signaturefd LLC now owns 8,278 shares of the apparel retailer's stock worth $1,932,000 after purchasing an additional 117 shares during the last quarter. Institutional investors and hedge funds own 86.86% of the company's stock.

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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