Ross Stores Faces Downgrade from Buy to Hold Rating by StockNews.com
Ross Stores, a well-renowned off-price retail apparel and home accessories store has recently faced a downgrade from “buy” rating to “hold” rating by StockNews.com in their latest report. The global apparel retailer is known for its variety of branded and designer apparel, footwear along with home fashions through the Dress for Less and dd’s DISCOUNTS brands with 1,483 stores throughout the US.
This recent downgrade was announced on Tuesday, coming after Ross Store’s revenue release via their earnings results released on February 28th. The retailer generated $5.21 billion as opposed to analysts’ expectations of $5.14 billion – a positive outcome amidst the ongoing pandemic.
Moreover, Ross Stores reported an earnings-per-share (EPS) of $1.31 while surpassing the consensus estimate of $1.23 per share by approximately $0.08 per share for Q4-2020 end year results. This showcased growth in comparison to the same quarter in previous years where they earned $1.04 earnings-per-share (EPS). Furthermore, the company had a return-on-equity (ROE) of 36.4% and net margins increased over time reaching a stability level of about 8%. In light of these numbers, analysts predict that Ross Stores will post an EPS estimate of around 4.94 for their current fiscal year.
The global pandemic certainly brought forth some challenges for retailers in this sector due to ever-changing market trends which kept fluctuating at an unprecedented rate as people worldwide shifted into adapting towards new spending habits caused by ongoing economic uncertainty since last year’s pandemic spread worldwide.
In conclusion, despite receiving a downgrade from Selling News’ buy-rating down to hold-rating, Ross Stores’ positive revenue performance and strong Return-On-Equity figures are reasons enough for investors to consider holding stock in this leading global apparel brand. Its reputation for offering branded and designer apparel products at off-price values continues to set it apart from the competition. Ross Stores has been in business since 1957, when it was founded by Stuart G.Moldaw. It is headquartered in Dublin, California, and boasts various stores throughout the US.
Ross Stores, Inc.: Mixed Ratings and Insider Trading Activity
Ross Stores, Inc. is a leading off-price retail apparel and home accessories store with headquarters in Dublin, CA. The company offers branded and designer apparel, accessories, footwear, and home fashions through the Dress for Less and dd’s DISCOUNTS brands. Despite its reputable standing within the retail industry, analysts at UBS recently lowered Ross Stores’ rating from “neutral” to “sell.” In contrast, Citigroup raised their price target on Ross Stores from $116.00 to $133.00 and issued a “buy” rating on Tuesday, February 21st. Credit Suisse Group also issued an “outperform” rating with a $123.00 price target on shares of Ross Stores back in early March. Telsey Advisory Group followed suit and reiterated a “market perform” rating with a $120.00 price target.
Furthermore, Deutsche Bank Aktiengesellschaft decreased the company’s price target from $121.00 to $120.00 shortly after other ratings were issued earlier this year. Bloomberg reported that one analyst has ranked Ross Stores as a sell, two have given it a hold ranking while thirteen rated it as buy thus far; it currently holds an average rating of “Moderate Buy” with a consensus target price of $120.53.
As of Tuesday morning this week, shares of NASDAQ:ROST opened at $104.18; the fifty-day moving average price is at $108.37 while the two-hundred-day moving average price stands at $107.03.The stock has had its market capitalization set at an impressive value of $35.63 billion.
People familiar with the matter noted that insiders Michael K.Kobayashi sold 12,221 shares of Ross Store’s stock in early April this year for an estimated total transaction worth more than one million dollars ($1,295,426). Insider trading reports indicate that Michael Hartshorn also sold over 20,000 shares of the company’s stock in early March this year. In total, insights have sold around $3.9 million worth of company stock insider trading activity in the last ninety days.
Recently, several hedge funds and other institutional investors such as Accurate Wealth Management LLC, Core Alternative Capital, Arlington Partners LLC, Resurgent Financial Advisors LLC and Capital Directions Investment Advisors LLC have invested heavily on Ross Stores shares. The majority of analysts remain bullish while some hold a less positive outlook with a sell rating.