On August 23, 2023, Brian Morrow, President and CMO of DD's DISCOUNTS, a subsidiary of Ross Stores Inc (ROST, Financial), sold 25,945 shares of the company. This move is part of a trend observed over the past year, where the insider has sold a total of 25,945 shares and purchased none.
Brian Morrow is a seasoned executive with a wealth of experience in the retail industry. As the President and CMO of DD's DISCOUNTS, he plays a crucial role in the strategic direction and growth of the company. His insider trading activities provide valuable insights into the company's performance and future prospects.
Ross Stores Inc is an American off-price retailer with a focus on clothing, home fashion, and accessories. The company operates through two segments: Ross Dress for Less (Ross) and DD's DISCOUNTS. Ross offers name brand and designer apparel, accessories, footwear, and home fashions at discount prices, while DD's DISCOUNTS features a more moderately-priced assortment of first-quality, in-season, name brand apparel, accessories, footwear, and home fashions.
The insider transaction history for Ross Stores Inc shows a trend of more sells than buys over the past year. There have been 5 insider sells and 0 insider buys in total. This could indicate that insiders believe the stock is currently overvalued, prompting them to sell their shares.
On the day of the insider's recent sell, shares of Ross Stores Inc were trading for $121.53 apiece, giving the stock a market cap of $40.54 billion. The price-earnings ratio is 25.21, which is higher than the industry median of 16.54 and the company’s historical median price-earnings ratio. This suggests that the stock is currently trading at a premium compared to its peers and its own historical average.
However, with a price of $121.53 and a GuruFocus Value of $123.02, Ross Stores Inc has a price-to-GF-Value ratio of 0.99. This means the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent sell of Ross Stores Inc shares, coupled with the stock's current valuation metrics, suggests that the stock is fairly valued at its current price. Investors should keep a close eye on the insider's future trading activities for further insights into the company's performance and valuation.
