Foyston Gordon & Payne Inc Reduces Stake in Ross Stores, Inc.

Foyston Gordon & Payne Inc has decreased its investment in Ross Stores, Inc. (NASDAQ:ROST) by 20.0% during the third quarter, based on the latest Form 13F filing with the SEC. Following this reduction, the firm now holds 38,138 shares of the clothing retailer, down from 47,656 shares after selling 9,518 shares in the recent quarter. Ross Stores represents about 1.4% of Foyston Gordon & Payne Inc's overall investment portfolio, making it the 27th largest holding in their assets. As per the most recent SEC report, the value of Foyston Gordon & Payne Inc's holdings in Ross Stores amounts to $5,740,000.

Other Institutional Changes

Several other hedge funds have also adjusted their positions in Ross Stores. For instance, PGGM Investments increased its stake by a whopping 724.1% in the second quarter, now owning 24,848 shares worth approximately $3,611,000 after acquiring an additional 21,833 shares during the period. Additionally, Algert Global LLC raised its investment by 917.2% in the third quarter, holding 29,498 shares valued at $4,440,000 after purchasing another 26,598 shares. Diversified Trust Co also expanded its holdings by 47.5% in the second quarter, accumulating 13,124 shares worth $1,907,000 after buying 4,228 more shares. Legal & General Group Plc increased its stake by 10.3% during the same period, now owning 2,737,042 shares valued at $397,747,000 following an additional purchase of 254,720 shares. Furthermore, Quantinno Capital Management LP raised its position by 48.8% in the third quarter, owning 49,523 shares worth $7,454,000 after acquiring another 16,248 shares. Overall, institutional investors and hedge funds control 86.86% of the company's stock.

Insider Trading Activity

In other updates, COO Michael J. Hartshorn sold 8,366 shares of Ross Stores stock in a transaction dated September 16th. The shares were sold at an average price of $155.64, totaling $1,302,084.24. Following this sale, the COO holds 103,049 shares of the company's stock, now valued at $16,038,546.36, representing a 7.51% decrease in their ownership. This transaction was also disclosed through a document filed with the SEC. Currently, insiders hold 2.10% of the company’s shares.

Stock Performance Overview

On Tuesday, shares of NASDAQ:ROST opened at $156.24. The company boasts a market capitalization of $51.83 billion, with a P/E ratio of 24.60 and a P/E/G ratio of 2.59. Its beta stands at 1.10. The stock has a 50-day simple moving average of $145.80 and a 200-day simple moving average of $146.42. Over the past year, Ross Stores reached a 52-week low of $127.53 and a high of $163.60. Financially, the company has a quick ratio of 0.98, a current ratio of 1.57, and a debt-to-equity ratio of 0.29.

Quarterly Earnings Report

Ross Stores reported its quarterly earnings on November 21st, revealing an EPS of $1.48 for the quarter, which surpassed the consensus estimate of $1.41 by $0.07. The company's return on equity stands at 41.83%, with a net profit margin of 9.95%. The reported revenue for the quarter was $5.10 billion, slightly below analysts' expectations of $5.15 billion. In the same quarter last year, the company recorded an EPS of $1.33, indicating a 3.6% increase in revenue year-over-year. Analysts project that Ross Stores will achieve an EPS of 6.17 for the current fiscal year.

Dividend Announcement

Recently, Ross Stores declared a quarterly dividend scheduled for payment on December 31st. Shareholders on record as of December 10th will receive a dividend of $0.3675 per share, translating to an annualized dividend of $1.47, which equates to a yield of 0.94%. The ex-dividend date is set for December 10th. The dividend payout ratio for Ross Stores is currently at 23.15%.

Analyst Recommendations

In terms of analyst ratings, various brokerages recently updated their views on Ross Stores. Barclays raised its price target for the stock from $165.00 to $175.00, giving it an “overweight” rating. Similarly, TD Cowen reduced its target from $185.00 to $177.00 with a “buy” rating, while Guggenheim reiterated a “buy” rating and set a price target of $180.00. JPMorgan Chase & Co. increased its price objective from $171.00 to $173.00, maintaining an “overweight” rating in their analyses. Additionally, Evercore ISI upgraded its target from $170.00 to $180.00 with an “outperform” rating. Overall, analysts have rated the stock with five “hold” ratings, twelve “buy” ratings, and one “strong buy” rating, resulting in an average rating of “Moderate Buy” and a price target averaging $171.69.

Company Overview

Ross Stores, Inc., along with its subsidiaries, operates off-price retail apparel and home fashion stores under the brands Ross Dress for Less and dd's DISCOUNTS across the United States. Their stores primarily sell apparel, footwear, accessories, and home fashions. Ross Dress for Less targets middle-income households, while dd's DISCOUNTS offers products to moderate-income households.

investment, stocks, funds