Ross Stores (NASDAQ:ROST) Shares Gap Up - Still a Buy?

Ross Stores, Inc. (NASDAQ:ROST - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $129.97, but opened at $135.39. Ross Stores shares last traded at $130.77, with a volume of 737,983 shares traded.

Analysts Set New Price Targets

A number of analysts recently issued reports on ROST shares. Robert W. Baird reduced their price objective on Ross Stores from $175.00 to $160.00 and set an "outperform" rating for the company in a research report on Wednesday, March 5th. Citigroup upgraded Ross Stores from a "neutral" rating to a "buy" rating and set a $146.00 price target for the company in a report on Thursday, April 3rd. Barclays lowered their price target on Ross Stores from $157.00 to $156.00 and set an "overweight" rating for the company in a research note on Friday, May 23rd. Morgan Stanley cut their price objective on shares of Ross Stores from $128.00 to $126.00 and set an "equal weight" rating on the stock in a research report on Friday, May 23rd. Finally, Evercore ISI decreased their target price on shares of Ross Stores from $170.00 to $160.00 and set an "outperform" rating for the company in a research report on Friday, May 23rd. Five analysts have rated the stock with a hold rating, twelve have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $158.94.

Ross Stores Stock Up 0.5%

The firm has a 50-day moving average of $139.37 and a two-hundred day moving average of $140.28. The firm has a market cap of $42.72 billion, a price-to-earnings ratio of 20.74, a PEG ratio of 2.68 and a beta of 1.11. The company has a current ratio of 1.55, a quick ratio of 0.95 and a debt-to-equity ratio of 0.18.

Ross Stores (NASDAQ:ROST - Get Free Report) last issued its quarterly earnings results on Thursday, May 22nd. The apparel retailer reported $1.47 EPS for the quarter, topping analysts' consensus estimates of $1.44 by $0.03. The company had revenue of $4.98 billion during the quarter, compared to analyst estimates of $4.94 billion. Ross Stores had a return on equity of 38.77% and a net margin of 9.79%. The company's quarterly revenue was up 2.6% compared to the same quarter last year. During the same period in the previous year, the company earned $1.46 earnings per share. As a group, sell-side analysts predict that Ross Stores, Inc. will post 6.17 earnings per share for the current fiscal year.

Ross Stores Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Tuesday, June 10th were paid a dividend of $0.405 per share. The ex-dividend date was Tuesday, June 10th. This represents a $1.62 annualized dividend and a yield of 1.24%. Ross Stores's dividend payout ratio is 25.59%.

Institutional Trading of Ross Stores

Several institutional investors have recently modified their holdings of the company. ICW Investment Advisors LLC lifted its position in Ross Stores by 0.4% in the first quarter. ICW Investment Advisors LLC now owns 18,458 shares of the apparel retailer's stock worth $2,359,000 after purchasing an additional 67 shares during the period. CreativeOne Wealth LLC lifted its holdings in shares of Ross Stores by 3.8% during the 1st quarter. CreativeOne Wealth LLC now owns 1,932 shares of the apparel retailer's stock worth $247,000 after acquiring an additional 70 shares during the period. Golden State Wealth Management LLC lifted its holdings in shares of Ross Stores by 50.7% during the 1st quarter. Golden State Wealth Management LLC now owns 217 shares of the apparel retailer's stock worth $28,000 after acquiring an additional 73 shares during the period. Forum Financial Management LP boosted its position in shares of Ross Stores by 5.3% during the 4th quarter. Forum Financial Management LP now owns 1,474 shares of the apparel retailer's stock valued at $223,000 after acquiring an additional 74 shares in the last quarter. Finally, First Horizon Advisors Inc. boosted its position in shares of Ross Stores by 6.1% during the 1st quarter. First Horizon Advisors Inc. now owns 1,280 shares of the apparel retailer's stock valued at $164,000 after acquiring an additional 74 shares in the last quarter. Institutional investors and hedge funds own 86.86% of the company's stock.

About Ross Stores

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.

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