Michael J. Hartshorn, the Group President and Chief Operating Officer of Ross Stores, Inc. (NASDAQ:ROST), has sold a significant number of shares in the company, according to a recent SEC filing. The transaction, which took place on September 16, 2024, involved the sale of 8,366 shares of common stock at a weighted average price of $155.6422, resulting in a total sale value of approximately $1.3 million.
The sale was executed under a pre-established trading plan known as a 10b5-1 Plan, which was set up on October 6, 2023. This plan allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. The shares were sold in multiple transactions with prices ranging from $154.999 to $156.14.
Following the sale, Hartshorn still holds a substantial stake in Ross Stores, with 103,049 shares remaining in his possession. The transactions are detailed in a Form 4 filed with the Securities and Exchange Commission, which provides insights into the trading activities of company insiders.
Ross Stores, headquartered in Dublin, California, operates as a retailer offering apparel and home fashion through its Ross Dress for Less and dd's DISCOUNTS brands. The company has been a staple in the retail industry, known for its off-price model that appeals to bargain-conscious consumers.
Investors and market watchers closely monitor insider sales as they may provide signals about an executive's confidence in the company's future performance. However, it is not uncommon for executives to sell shares for personal financial planning or diversification reasons.
The SEC filing indicates that the sale was carried out in a manner consistent with regulatory guidelines and corporate governance standards. Interested parties can request additional details about the specific prices at which the shares were sold within the reported range from Ross Stores or the SEC.
Shareholders of Ross Stores can continue to track insider transactions as they provide one of many data points to consider when evaluating their investment in the company.
In other recent news, Ross Stores has reported a strong second quarter with a 7% increase in total sales, hitting $5.3 billion, and a 4% rise in comparable store sales. Earnings per share (EPS) for the quarter were $1.59, up from $1.32 in the same quarter last year. Loop Capital responded to these developments by raising its price target for Ross Stores from $170 to $190, while maintaining a Buy rating. This adjustment came after Ross Stores exceeded the firm's projections and reported a 4% growth in comparable store sales.
Additionally, Ross Stores announced key leadership changes, promoting Karen Fleming to President and Chief Merchandising Officer at Ross Dress for Less, and Karen Sykes to President and Chief Merchandising Officer of dd's DISCOUNTS. These promotions are part of Ross Stores' efforts to enhance its operational efficiency and stay competitive in the off-price retail segment.
Lastly, Ross Stores revised their full-year earnings per share (EPS) forecast upward by approximately 19 cents, aligning with both Loop Capital's and consensus estimates. The company's third-quarter outlook is set to meet consensus estimates, with projections for comparable store sales growth of 2-3% for the third and fourth quarters. These are the recent developments for Ross Stores.
InvestingPro Insights
As investors digest the news of Michael J. Hartshorn's recent share sale, it's important to consider the broader financial health and market position of Ross Stores, Inc. (NASDAQ:ROST). According to InvestingPro data, Ross Stores currently holds a market capitalization of approximately $49.96 billion, reflecting its substantial presence in the retail industry. The company's P/E ratio stands at 24.32, which aligns with its adjusted P/E ratio over the last twelve months as of Q2 2025, indicating a consistent valuation relative to its earnings.
One of the InvestingPro Tips highlights that Ross Stores has been able to raise its dividend for 3 consecutive years, demonstrating a commitment to returning value to shareholders. This is further underscored by the company's track record of maintaining dividend payments for 31 consecutive years, which speaks to its financial stability and prudent capital management strategies.
In addition, Ross Stores is noted for trading at a low P/E ratio relative to near-term earnings growth, suggesting that the stock could be undervalued when considering its earnings potential. This could be particularly relevant for investors looking for growth opportunities within the Specialty Retail industry.
For those seeking more in-depth analysis, InvestingPro offers additional insights and metrics on Ross Stores. Currently, there are 12 more InvestingPro Tips available, which can provide investors with a more comprehensive understanding of the company's financial performance and market position. These tips are accessible at: https://www.investing.com/pro/ROST.
As investors consider the implications of insider transactions, these InvestingPro Insights can serve as a valuable resource for making informed decisions about their investments in Ross Stores.
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