Ross Stores: 5 Different Insiders Have Sold Shares During The Last 30 Days

Apr.11.14 | About: Ross Stores, (ROST)

Summary

Five insiders sold Ross Stores stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

Four of these five insiders decreased their holdings by more than 10%.

Ross Stores (NASDAQ:ROST) is the off-price apparel and home fashion chain in the United States.

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Insider selling during the last 30 days

Here is a table of Ross Stores' insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Douglas Baker CMO Mar 21-Apr 9 36,000 No 264,085 shares + 4,000 options 11.8%
Lisa Panattoni EVP Mar 19-Apr 4 33,741 No 202,003 shares 14.3%
Barbara Rentler CMO Mar 19-Apr 3 57,565 No 280,886 shares 17.0%
Michael Bush Director April 2 16,000 No 24,921 shares 39.1%
Michael Hartshorn CFO March 19 2,362 No 31,486 shares 7.0%
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There have been 145,668 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Ross Stores' insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
April 2014 45,191 0
March 2014 293,556 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 10,000 0
September 2013 89,194 0
August 2013 15,500 0
July 2013 10,000 0
June 2013 0 0
May 2013 0 0
April 2013 40,000 0
March 2013 300,585 0
February 2013 0 0
January 2013 222,388 0
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There have been 1,026,414 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Ross Stores reported the fiscal 2013 full-year, which ended February 1, financial results on February 27 with the following highlights:

Revenue $10.2 billion
Net income $837.3 million
Cash $435.2 million
Debt $150.0 million
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The five insiders sold their shares after these results.

Outlook

Ross Stores' guidance is as follows:

Q1/2014 FY2014
Same store sales growth 1%-2% 1%-2%
EPS $1.11-$1.15 $4.05-$4.21
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Competition

Ross Stores' competitors include Kohl's (NYSE:KSS), The TJX Companies (NYSE:TJX), and Wal-Mart Stores (NYSE:WMT). Here is a table comparing these companies.

Company ROST KSS TJX WMT
Market Cap: 14.96B 11.62B 41.88B 249.71B
Employees: 17,400 31,000 N/A 2,200,000
Qtrly Rev Growth (yoy): -0.01 -0.04 0.01 0.02
Revenue: 10.23B 19.03B 27.42B 476.29B
Gross Margin: 0.28 0.36 0.29 0.25
EBITDA: 1.55B 2.63B 3.90B 35.74B
Operating Margin: 0.13 0.09 0.12 0.06
Net Income: 837.30M 889.00M 2.14B 15.88B
EPS: 3.88 4.05 2.94 0.04
P/E: 18.10 13.91 20.49 16.08
PEG (5 yr expected): 1.45 2.45 1.73 1.76
P/S: 1.49 0.62 1.55 0.53
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Ross Stores has the second-highest P/S ratio among these four companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
KSS 0 22,436
TJX 0 73,251
WMT 0 39,177
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Only Ross Stores has seen intensive insider selling during the last 30 days.

Conclusion

There have been five different insiders selling Ross Stores, and there have not been any insiders buying Ross Stores during the last 30 days. Four of these five insiders decreased their holdings by more than 10%. Ross Stores has an insider ownership of 2.57%.

Ross Stores has a $64 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $64 price target. I would place a stop loss at $75, which is the three-month high. The two main reasons for the proposed short entry are a bearish Point & Figure chart, and the intensive insider-selling activity.

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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in ROST over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.