Ross Stores Inc. (ROST) Downgraded by Zacks Investment Research
According to Zacks, “Ross Stores has been gaining from the favorable response of value-focused customers to its extensive collection of brands and solid cost controls. Though Ross Stores expects to face obstacles related to strong comparisons, amid macroeconomic uncertainty and a competitive retail landscape, it remains confident of performing well in the year ahead. This is also highlighted by the robust third and fourth quarter view provided with its second quarter results. Also, Ross's solid financial status, ongoing merchandise initiatives and consistent focus on store expansion bode well. Evidently, the company recently achieved its expansion target for the second quarter, which also marked the second leg of expansion under the company's fiscal 2016 plan of adding nearly 90 stores. At the same time, however, over-expansion in new domestic markets may invite the threat of cannibalization. Estimates have been stable ahead of its third-quarter results.”
A number of other research analysts also recently issued reports on ROST. Deutsche Bank AG restated a buy rating on shares of Ross Stores in a research report on Tuesday, June 14th. Miller Tabak initiated coverage on shares of Ross Stores in a research report on Friday, June 24th. They issued a buy rating and a $66.00 price target on the stock. Vetr downgraded shares of Ross Stores from a strong-buy rating to a buy rating and set a $60.50 price target on the stock. in a research report on Monday, June 27th. Cowen and Company boosted their price target on shares of Ross Stores from $61.00 to $63.00 and gave the stock an outperform rating in a research report on Wednesday, July 13th. Finally, Jefferies Group restated a hold rating on shares of Ross Stores in a research report on Thursday, July 14th. One equities research analyst has rated the stock with a sell rating, twelve have given a hold rating and fifteen have issued a buy rating to the company’s stock. Ross Stores presently has an average rating of Buy and a consensus target price of $65.25.
Shares of Ross Stores (NASDAQ:ROST) opened at 63.75 on Thursday. Ross Stores has a 12 month low of $43.47 and a 12 month high of $66.28. The firm has a market capitalization of $25.28 billion, a price-to-earnings ratio of 24.27 and a beta of 0.94. The stock’s 50 day moving average is $63.16 and its 200 day moving average is $58.78.
Ross Stores (NASDAQ:ROST) last posted its earnings results on Thursday, August 18th. The apparel retailer reported $0.71 EPS for the quarter, topping the consensus estimate of $0.67 by $0.04. Ross Stores had a net margin of 8.55% and a return on equity of 42.01%. The business had revenue of $3.18 billion for the quarter, compared to the consensus estimate of $3.13 billion. During the same period last year, the company earned $0.63 EPS. The firm’s revenue was up 7.2% compared to the same quarter last year. Equities research analysts forecast that Ross Stores will post $2.75 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Friday, September 2nd were given a dividend of $0.135 per share. This represents a $0.54 annualized dividend and a dividend yield of 0.85%. The ex-dividend date was Wednesday, August 31st. Ross Stores’s dividend payout ratio is presently 20.53%.
In other news, CEO Barbara Rentler sold 12,840 shares of the company’s stock in a transaction dated Thursday, September 22nd. The stock was sold at an average price of $63.76, for a total transaction of $818,678.40. Following the sale, the chief executive officer now directly owns 542,851 shares in the company, valued at $34,612,179.76. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider James S. Fassio sold 12,000 shares of the company’s stock in a transaction dated Thursday, September 22nd. The shares were sold at an average price of $63.35, for a total value of $760,200.00. The disclosure for this sale can be found here. Insiders own 2.40% of the company’s stock.
Several large investors have recently made changes to their positions in ROST. Evercore Wealth Management LLC boosted its position in Ross Stores by 29.1% in the second quarter. Evercore Wealth Management LLC now owns 1,929 shares of the apparel retailer’s stock valued at $109,000 after buying an additional 435 shares during the period. NN Investment Partners Holdings N.V. bought a new position in Ross Stores during the first quarter valued at $140,000. Carroll Financial Associates Inc. boosted its position in Ross Stores by 0.7% in the second quarter. Carroll Financial Associates Inc. now owns 2,605 shares of the apparel retailer’s stock valued at $147,000 after buying an additional 17 shares during the period. Independent Portfolio Consultants Inc. bought a new position in Ross Stores during the second quarter valued at $151,000. Finally, Citizens Financial Group Inc RI boosted its position in Ross Stores by 51.6% in the first quarter. Citizens Financial Group Inc RI now owns 2,737 shares of the apparel retailer’s stock valued at $159,000 after buying an additional 931 shares during the period. Hedge funds and other institutional investors own 90.21% of the company’s stock.
About Ross Stores
Ross Stores, Inc is an off-price retailer of name brand and designer apparel, accessories, footwear, and home fashions for the entire family. The Company operates two brands of off-price retail apparel and home fashion stores, Ross Dress for Less (Ross) and dd’s DISCOUNTS. As of December 31, 2014, the Company operated 1,210 Ross locations in 33 states, the District of Columbia and Guam, and 152 dd’s DISCOUNTS stores in 15 states.
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