Coho Partners Ltd. Reduces Holdings in Ross Stores, Inc.

Coho Partners Ltd. has decreased its investment in Ross Stores, Inc. (NASDAQ: ROST) by 11.3% during the third quarter, as revealed in its recent filing with the SEC. Following this adjustment, the fund now holds 880,847 shares of the apparel retailer, after selling 112,639 shares within that quarter. Ross Stores accounts for approximately 4.8% of Coho Partners Ltd.'s total holdings, making it the fund's third largest investment. By the end of the most recent quarter, Coho Partners Ltd. owned 0.27% of Ross Stores, which is valued at $132,576,000.

Institutional Investors Update

Several other hedge funds and institutional investors have also reshaped their positions in Ross Stores lately. Notably, Los Angeles Capital Management LLC increased its stake by 68.8% in the second quarter, now owning 2,391,856 shares valued at $347,585,000 after purchasing an additional 975,190 shares during that period. Furthermore, AQR Capital Management LLC raised its holdings by 59.4%, acquiring an extra 469,717 shares to bring its total to 1,261,102 shares worth $183,263,000. Principal Financial Group Inc. also boosted its holdings in Ross Stores by 27.8%, now holding 1,814,440 shares valued at $263,675,000 after their recent acquisition of an additional 394,774 shares. Similarly, 1832 Asset Management L.P. increased its stake by 24.2%, owning 2,007,528 shares worth $291,734,000 after picking up an additional 390,518 shares. Lastly, Victory Capital Management Inc. raised its stake by 11.7%, acquiring 347,006 additional shares to own a total of 3,310,364 shares valued at $481,062,000. Combined, institutional investors currently own 86.86% of Ross Stores stock.

Performance Overview

As of Thursday, shares of NASDAQ: ROST opened at $145.24. The company has a market capitalization of $48.45 billion, a PE ratio of 24.49, a PEG ratio of 2.44, and a beta of 1.09. Over the past year, Ross Stores has seen stock fluctuations with a low of $112.39 and a high of $163.60. The company’s 50-day moving average is $149.50, while the 200-day moving average stands at $143.39. Current ratios are 1.56, with a quick ratio of 1.05 and a debt-to-equity ratio of 0.30.

Recent Earnings and Dividends

Ross Stores last reported its quarterly earnings on August 22nd. The company announced an earnings per share (EPS) of $1.59, surpassing analysts' expectations of $1.50 by $0.09. The revenue for this quarter was $5.29 billion, slightly above the anticipated $5.25 billion. Compared to the same quarter last year, Ross Stores' revenue increased by 7.1%. For the full year, analysts predict that Ross Stores will post a total EPS of 6.2.

Moreover, Ross Stores declared a quarterly dividend, which was disbursed on September 30th. Shareholders of record as of September 10th received a dividend of $0.3675, amounting to an annual dividend of $1.47, with a yield of 1.01%. The company's dividend payout ratio currently stands at 24.79%.

Insider Transactions

In terms of insider activity, CEO Barbara Rentler sold 48,885 shares of the company's stock on August 27th at an average price of $153.93, totaling approximately $7,524,868. Following this transaction, Rentler holds 311,853 shares valued at around $48 million. Additionally, COO Michael J. Hartshorn sold 8,366 shares on September 16th for a total of about $1.3 million, retaining 103,049 shares worth approximately $16 million. Over the last three months, insiders have sold 72,138 shares worth about $11 million, with corporate insiders owning 2.10% of the stock.

Analyst Perspectives

In recent analyst coverage, various firms have adjusted their ratings and price targets for Ross Stores. Loop Capital increased its price target from $170.00 to $190.00 with a 'buy' rating on August 23rd. Additionally, StockNews.com upgraded Ross Stores from 'hold' to 'buy', and Morgan Stanley lifted its target price from $163.00 to $178.00, endorsing an 'overweight' rating. Bank of America also raised its price target from $170.00 to $180.00, affirming a 'buy' rating. Overall, three analysts have issued hold ratings, while fourteen have recommended buying, indicating a consensus rating of “Moderate Buy” with an average price target of $169.71.

Company Overview

Ross Stores, Inc., along with its subsidiaries, operates off-price retail apparel and home fashion stores in the United States under the brand names Ross Dress for Less and dd's DISCOUNTS. The company primarily offers a range of apparel, accessories, footwear, and home fashions, catering primarily to middle-income households.

Coho, Partners, Ross