Foot Locker Inc. (NYSE:FL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday. The brokerage presently has a $75.00 target price on the stock. Zacks Investment Research’s target price points to a potential upside of 11.94% from the stock’s previous close.
According to Zacks, “After commencing fiscal 2016 on a soft note, Foot Locker made a sharp comeback with better-than-expected results in the second quarter. Sturdy comparable sales performance, cost containment efforts and strategic initiatives helped the company to continue registering year-over-year growth in both the top and bottom lines. Management reaffirmed its projection of a mid-single-digit increase in comparable sales in fiscal 2016. Further, it continues to expect double-digit growth in earnings per share for the fiscal year. We believe that continuous exploitation of opportunities such as children’s business, shop-in-shop expansion, store banner.com business, store refurbishment and enhancement of assortments, will benefit the company in the long run. However, a competitive retail landscape, fashion obsolescence and foreign currency headwinds remain concerns.”
A number of other analysts have also commented on the company. Guggenheim began coverage on Foot Locker in a research report on Friday, September 30th. They issued a “neutral” rating for the company. JPMorgan Chase & Co. reiterated a “focus list” rating on shares of Foot Locker in a research report on Monday, September 26th. Piper Jaffray Cos. set a $72.00 price objective on Foot Locker and gave the stock a “buy” rating in a research report on Thursday, September 8th. Brean Capital reiterated a “buy” rating and issued a $77.00 price objective on shares of Foot Locker in a research report on Wednesday, August 31st. Finally, B. Riley lowered Foot Locker from a “buy” rating to a “neutral” rating in a research report on Monday, August 22nd. One equities research analyst has rated the stock with a sell rating, six have given a hold rating, sixteen have assigned a buy rating and two have issued a strong buy rating to the company’s stock. Foot Locker presently has a consensus rating of “Buy” and a consensus price target of $73.53.
Shares of Foot Locker (NYSE:FL) traded up 1.81% during trading on Wednesday, reaching $68.21. 492,872 shares of the company were exchanged. The stock has a 50-day moving average of $66.14 and a 200 day moving average of $60.56. The stock has a market capitalization of $9.09 billion, a P/E ratio of 16.97 and a beta of 0.61. Foot Locker has a 52-week low of $50.90 and a 52-week high of $71.71.
Foot Locker (NYSE:FL) last released its quarterly earnings results on Friday, August 19th. The company reported $0.94 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.90 by $0.04. Foot Locker had a return on equity of 23.99% and a net margin of 7.35%. The business earned $1.78 billion during the quarter, compared to analysts’ expectations of $1.76 billion. During the same period in the previous year, the business posted $0.84 earnings per share. The firm’s revenue for the quarter was up 5.0% compared to the same quarter last year. On average, equities analysts anticipate that Foot Locker will post $4.76 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, October 28th. Investors of record on Friday, October 14th will be paid a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a yield of 1.64%. The ex-dividend date of this dividend is Wednesday, October 12th. Foot Locker’s dividend payout ratio (DPR) is presently 27.23%.
In other Foot Locker news, Director Jarobin Gilbert, Jr. sold 1,000 shares of the company’s stock in a transaction on Friday, July 8th. The stock was sold at an average price of $57.36, for a total value of $57,360.00. Following the transaction, the director now directly owns 12,876 shares of the company’s stock, valued at approximately $738,567.36. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Chairman Richard A. Johnson sold 50,000 shares of the company’s stock in a transaction on Friday, August 19th. The shares were sold at an average price of $68.04, for a total value of $3,402,000.00. The disclosure for this sale can be found here. 2.92% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. NEXT Financial Group Inc raised its stake in Foot Locker by 0.7% in the second quarter. NEXT Financial Group Inc now owns 4,530 shares of the company’s stock valued at $248,000 after buying an additional 30 shares during the period. Gerstein Fisher raised its stake in Foot Locker by 1.7% in the second quarter. Gerstein Fisher now owns 4,463 shares of the company’s stock valued at $245,000 after buying an additional 73 shares during the period. Raymond James Trust N.A. raised its stake in Foot Locker by 2.0% in the second quarter. Raymond James Trust N.A. now owns 3,819 shares of the company’s stock valued at $210,000 after buying an additional 76 shares during the period. Emerald Mutual Fund Advisers Trust raised its stake in Foot Locker by 2.5% in the second quarter. Emerald Mutual Fund Advisers Trust now owns 3,794 shares of the company’s stock valued at $208,000 after buying an additional 93 shares during the period. Finally, Meiji Yasuda Asset Management Co Ltd. raised its stake in Foot Locker by 1.2% in the first quarter. Meiji Yasuda Asset Management Co Ltd. now owns 8,705 shares of the company’s stock valued at $561,000 after buying an additional 100 shares during the period. 98.06% of the stock is currently owned by hedge funds and other institutional investors.
Foot Locker Company Profile
Foot Locker, Inc is a retailer of shoes and apparel. The Company operates through two segments: Athletic Stores and Direct-to-Customers. The Company’s Athletic Stores segment is an athletic footwear and apparel retailer whose formats include Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Footaction, SIX:02, Runners Point Group, including Runners Point and Sidestep.
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