Ross Stores (NASDAQ:ROST) Shares Gap Up Following Earnings Beat

Ross Stores, Inc. (NASDAQ:ROST)’s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $131.86, but opened at $141.86. Ross Stores shares last traded at $143.45, with a volume of 1,416,246 shares changing hands.

The apparel retailer reported $1.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.35 by $0.11. The firm had revenue of $4.86 billion for the quarter, compared to analyst estimates of $4.83 billion. Ross Stores had a return on equity of 41.15% and a net margin of 9.20%. The business’s revenue was up 8.1% on a year-over-year basis. During the same quarter last year, the company posted $1.09 earnings per share.

Ross Stores Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Stockholders of record on Tuesday, June 11th will be paid a dividend of $0.3675 per share. This represents a $1.47 annualized dividend and a dividend yield of 1.03%. The ex-dividend date is Tuesday, June 11th. Ross Stores’s dividend payout ratio (DPR) is presently 26.44%.

Ross Stores declared that its Board of Directors has initiated a share repurchase program on Tuesday, March 5th that permits the company to buyback $2.10 billion in outstanding shares. This buyback authorization permits the apparel retailer to purchase up to 4.3% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the company. UBS Group increased their target price on Ross Stores from $145.00 to $147.00 and gave the stock a “neutral” rating in a research note on Friday. Telsey Advisory Group reaffirmed a “market perform” rating and issued a $160.00 target price on shares of Ross Stores in a report on Friday. Citigroup boosted their price target on Ross Stores from $147.00 to $172.00 and gave the stock a “buy” rating in a research note on Wednesday, March 6th. Robert W. Baird raised their price objective on Ross Stores from $145.00 to $162.00 and gave the company an “outperform” rating in a research note on Wednesday, March 6th. Finally, BMO Capital Markets boosted their target price on Ross Stores from $138.00 to $165.00 and gave the stock an “outperform” rating in a research report on Wednesday, March 6th. Four equities research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $155.68.

Insider Buying and Selling at Ross Stores

In other Ross Stores news, COO Michael J. Hartshorn sold 21,056 shares of the company’s stock in a transaction dated Monday, March 18th. The stock was sold at an average price of $145.14, for a total transaction of $3,056,067.84. Following the completion of the sale, the chief operating officer now directly owns 114,488 shares in the company, valued at $16,616,788.32. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, COO Michael J. Hartshorn sold 19,014 shares of the company’s stock in a transaction on Wednesday, March 27th. The shares were sold at an average price of $146.39, for a total transaction of $2,783,459.46. Following the completion of the sale, the chief operating officer now directly owns 119,962 shares of the company’s stock, valued at approximately $17,561,237.18. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Michael J. Hartshorn sold 21,056 shares of the firm’s stock in a transaction dated Monday, March 18th. The shares were sold at an average price of $145.14, for a total value of $3,056,067.84. Following the completion of the transaction, the chief operating officer now directly owns 114,488 shares in the company, valued at $16,616,788.32. The disclosure for this sale can be found here. Insiders have sold a total of 71,097 shares of company stock worth $10,396,178 in the last quarter. 2.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Ross Stores

Several institutional investors and hedge funds have recently modified their holdings of the stock. PGGM Investments acquired a new position in shares of Ross Stores during the first quarter worth $442,000. Swedbank AB acquired a new position in Ross Stores in the 1st quarter worth $16,130,000. Wahed Invest LLC boosted its position in Ross Stores by 12.8% in the 1st quarter. Wahed Invest LLC now owns 6,466 shares of the apparel retailer’s stock valued at $949,000 after buying an additional 736 shares during the last quarter. Plato Investment Management Ltd increased its position in shares of Ross Stores by 37,844.4% during the first quarter. Plato Investment Management Ltd now owns 6,830 shares of the apparel retailer’s stock worth $1,002,000 after acquiring an additional 6,812 shares during the last quarter. Finally, SkyView Investment Advisors LLC lifted its stake in shares of Ross Stores by 12.6% in the first quarter. SkyView Investment Advisors LLC now owns 14,565 shares of the apparel retailer’s stock worth $2,138,000 after acquiring an additional 1,630 shares in the last quarter. Hedge funds and other institutional investors own 86.86% of the company’s stock.

Ross Stores Trading Up 8.4 %

The company has a current ratio of 1.77, a quick ratio of 1.24 and a debt-to-equity ratio of 0.45. The business has a 50 day simple moving average of $136.91 and a two-hundred day simple moving average of $137.42. The stock has a market cap of $48.14 billion, a price-to-earnings ratio of 25.65, a price-to-earnings-growth ratio of 1.98 and a beta of 1.06.

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.