Ross Stores Group President Sells Over $1.3 Million in Company Stock

Michael J. Hartshorn, Group President and Chief Operating Officer of Ross Stores, Inc., has sold a significant number of shares in the company, as reported in a recent SEC filing. On September 16, 2024, he executed the sale of 8,366 shares of common stock at a weighted average price of $155.6422, amounting to approximately $1.3 million.

The transaction was carried out under a pre-established trading plan known as a 10b5-1 Plan, which was established on October 6, 2023. This plan enables company insiders to sell shares at predetermined times, helping to prevent accusations of insider trading. The shares were sold through multiple transactions, with prices varying from $154.999 to $156.14.

Despite the sale, Hartshorn retains a significant ownership in Ross Stores, holding 103,049 shares. The specifics of this transaction were disclosed in a Form 4 filed with the Securities and Exchange Commission, highlighting the trading activities of company insiders.

Ross Stores, headquartered in Dublin, California, is a retail chain that offers apparel and home fashion through its Ross Dress for Less and dd’s DISCOUNTS brands. The company is recognized for its off-price retail model, which caters to consumers seeking bargains.

Insider sales are closely watched by investors and market analysts, as they can indicate an executive’s confidence in the company’s future. However, sales can also occur for personal financial planning or diversification reasons.

The SEC filing shows that the sale was conducted in accordance with regulatory guidelines and corporate governance standards. Individuals interested in more specific details regarding the sale prices within the reported range can refer to the SEC or Ross Stores directly.

Shareholders can keep an eye on insider transactions, as these provide valuable insights when assessing their investment in the company.

In other news, Ross Stores recently reported a strong second quarter, with total sales increasing by 7% to $5.3 billion and comparable store sales growing by 4%. The earnings per share (EPS) for the quarter was $1.59, up from $1.32 year-over-year. Following these results, Loop Capital raised its price target for the company from $170 to $190 while maintaining a Buy rating, reflecting confidence in the company’s performance after it surpassed expectations.

Additionally, Ross Stores announced new leadership appointments, promoting Karen Fleming to President and Chief Merchandising Officer at Ross Dress for Less and Karen Sykes to the same position for dd’s DISCOUNTS. These promotions aim to enhance operational efficiency and competitiveness in the off-price retail sector.

The company also upwardly revised its full-year EPS forecast by approximately 19 cents, aligning with market estimates. The third-quarter outlook is on track with projections, expecting comparable store sales growth of 2-3% for the third and fourth quarters.

As investors consider Hartshorn’s recent share sale, it’s essential to evaluate Ross Stores’ overall financial health and market position. The company has a market capitalization of about $49.96 billion and a P/E ratio of 24.32, consistent with its earnings performance.

Ross Stores has successfully raised dividends for three consecutive years, underscoring its commitment to providing value to shareholders. This track record of maintaining dividend payments for 31 years reflects the company’s financial stability and capital management strategies.

The company is also recognized for trading at a competitive P/E ratio relative to near-term earnings growth, indicating potential undervaluation and presenting growth opportunities within the specialty retail sector.

Investors looking for deeper analysis can access various insights and metrics regarding Ross Stores to enhance their understanding of the company’s financial performance and market positioning. Considering insider transactions alongside these insights can be beneficial in making informed investment decisions about Ross Stores.