Ross Stores (NASDAQ:ROST) Reaches New 1-Year High - Time to Buy?

Key Points

• Ross Stores hit a new 52-week high intraday at $217.51 and several analysts raised targets (Goldman $244, Citi $240), leaving a consensus rating of "Moderate Buy" with an average price target of $208.29.
• Quarterly results beat expectations — EPS $2.00 vs. $1.90 est. and revenue $6.64B vs. $6.42B (revenue +12.2% YoY) — and the company raised its quarterly dividend to $0.445 ($1.78 annual).
• Valuation and ownership notes: market cap ~$69.9B, PE ~32.6, 50/200-day SMAs $199.75/$177.84; insiders sold shares recently while institutional ownership stands at about 86.9%.

Ross Stores, Inc. (NASDAQ:ROST - Get Free Report) hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $217.51 and last traded at $216.8870, with a volume of 177388 shares trading hands. The stock had previously closed at $216.03.

Analyst Ratings Changes

Several research analysts recently weighed in on ROST shares. Citigroup increased their target price on Ross Stores from $224.00 to $240.00 and gave the stock a "buy" rating in a research report on Wednesday, March 4th. The Goldman Sachs Group upped their price target on Ross Stores from $214.00 to $244.00 and gave the stock a "buy" rating in a research note on Wednesday, March 4th. Deutsche Bank Aktiengesellschaft set a $221.00 price objective on Ross Stores in a report on Thursday, January 8th. UBS Group set a $208.00 target price on Ross Stores in a report on Thursday, March 5th. Finally, Jefferies Financial Group reissued a "buy" rating and set a $205.00 target price on shares of Ross Stores in a research report on Monday, December 1st. Sixteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Ross Stores presently has a consensus rating of "Moderate Buy" and a consensus price target of $208.29.

Ross Stores Stock Up 0.1%

The firm has a 50-day simple moving average of $199.75 and a 200 day simple moving average of $177.84. The company has a market capitalization of $69.91 billion, a PE ratio of 32.63, a price-to-earnings-growth ratio of 2.99 and a beta of 0.97. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.58 and a quick ratio of 1.04.

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

Ross Stores Increases Dividend

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

Insider Buying and Selling at Ross Stores

In other Ross Stores news, CMO Karen Sykes sold 2,556 shares of the company'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 completion of the transaction, the chief marketing officer directly owned 103,945 shares of the company's stock, valued at $22,234,874.95. This represents a 2.40% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Patricia H. Mueller sold 1,881 shares of the firm's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $213.13, for a total value of $400,897.53. Following the sale, 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 disclosure for this sale is available in the SEC filing. Insiders own 2.20% of the company's stock.

Institutional Investors Weigh In On Ross Stores

Hedge funds have recently bought and sold shares of the business. J. Derek Lewis & Associates Inc. purchased a new position in shares of Ross Stores during the 4th quarter valued at approximately $411,000. Rockefeller Capital Management L.P. raised its holdings in Ross Stores by 39.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 46,918 shares of the apparel retailer's stock valued at $8,452,000 after acquiring an additional 13,273 shares in the last quarter. World Investment Advisors bought a new position in Ross Stores during the 4th quarter valued at $250,000. Meadowbrook Advisors Group LLC bought a new position in Ross Stores during the 4th quarter valued at $2,253,000. Finally, Hsbc Holdings PLC grew its holdings in Ross Stores by 1.5% during the 4th quarter. Hsbc Holdings PLC now owns 673,254 shares of the apparel retailer's stock worth $121,398,000 after acquiring an additional 10,175 shares in the last quarter. Institutional investors and hedge funds own 86.86% of the company's stock.

Ross Stores Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.