Miracle Mile Advisors LLC has taken a significant step in the retail investment landscape by acquiring a new position in shares of Ross Stores, Inc. (NASDAQ: ROST) during the third quarter of 2023. According to its recent Form 13F filing with the Securities and Exchange Commission, the advisory firm purchased 9,769 shares valued at approximately $1.49 million. This move reflects a growing interest in the apparel retailer, which has seen various hedge funds adjust their stakes in the company.
Several other institutional investors have also recently modified their positions in Ross Stores. Notably, Vanguard Group Inc. increased its holdings by 14.8% during the second quarter, now owning 39,182,660 shares worth approximately $4.99 billion, following the acquisition of an additional 5,060,954 shares. State Street Corp raised its holdings by 0.4%, bringing its total to 13,974,551 shares, valued at $1.78 billion. Similarly, Primecap Management Co. raised its stake by 0.5%, acquiring a total of 10,268,700 shares worth $1.31 billion.
The trend continues with Bank of America Corp, which grew its stake by 20.9% to own 9,582,401 shares, valued at $1.22 billion, and Geode Capital Management LLC, which increased its investment by 1.6%, resulting in ownership of 8,673,823 shares worth $1.10 billion. Together, institutional investors and hedge funds now hold 86.86% of Ross Stores’ stock.
Insider Trading Activity and Financial Performance
In related news, insider Stephen C. Brinkley sold 6,437 shares of Ross Stores on October 8, 2023, at an average price of $150.97, totaling approximately $971,793.89. Following this transaction, Brinkley retains 57,012 shares, valued at roughly $8.61 million, marking a 10.15% decrease in his ownership stake. This transaction has been disclosed in a filing with the Securities and Exchange Commission.
Ross Stores reported its latest earnings results on November 20, 2023. The apparel retailer announced earnings of $1.58 per share (EPS), surpassing analysts’ expectations of $1.38 by $0.20. The company achieved a net margin of 9.47% and a return on equity of 36.75%. Revenue for the quarter reached $5.60 billion, exceeding the forecast of $5.38 billion. This reflects a 10.4% increase in revenue compared to the same period last year, when the firm reported an EPS of $1.48.
Looking ahead, Ross Stores has provided guidance for fiscal year 2025, projecting EPS between $6.38 and $6.46, and for the fourth quarter, it anticipates an EPS between $1.77 and $1.85. Analysts estimate that the company will report an average EPS of $6.17 for the current year.
Dividend and Analyst Ratings
In addition to its earnings announcement, Ross Stores declared a quarterly dividend of $0.405, which was paid on December 31, 2023. Shareholders of record on December 9, 2023, received this dividend, representing an annualized payout of $1.62 and a yield of 0.9%. The company’s current dividend payout ratio stands at 25.31%.
Recent analyst reports reflect a positive outlook for Ross Stores. Telsey Advisory Group increased its price target from $160.00 to $175.00 and maintained a “market perform” rating. Similarly, Sanford C. Bernstein raised its target from $147.00 to $159.00 with a “market perform” rating. Bank of America has set a new price target of $200.00 while assigning a “buy” rating.
Overall, one analyst has issued a “Strong Buy” rating, while fourteen others have rated it as “Buy,” and five have assigned a “Hold” rating. The consensus among analysts indicates an average rating of “Moderate Buy” with a price target of $183.56.
Ross Stores, Inc. operates as an American off-price retailer headquartered in Dublin, California. The company runs the Ross Dress for Less and dd’s DISCOUNTS store formats, offering a wide range of apparel, footwear, home fashions, and accessories at reduced prices. Its business model focuses on opportunistic purchasing of excess inventory, closeouts, and overstocks from various suppliers, making it a value-oriented destination for consumers.
