Foot Locker Inc. (NYSE:FL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Friday.
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.”
Several other research analysts have also recently commented on FL. B. Riley raised their target price on Foot Locker from $75.00 to $80.00 and gave the stock a “buy” rating in a research report on Wednesday, August 17th. Canaccord Genuity set a $75.00 target price on Foot Locker and gave the stock a “buy” rating in a research report on Monday, August 15th. Bank of America Corp. reaffirmed a “buy” rating on shares of Foot Locker in a research report on Friday, June 10th. Deutsche Bank AG reaffirmed a “buy” rating on shares of Foot Locker in a research report on Wednesday, August 10th. Finally, Jefferies Group reaffirmed a “buy” rating and issued a $73.00 target price on shares of Foot Locker in a research report on Wednesday, June 29th. One analyst has rated the stock with a sell rating, seven have given a hold rating, fourteen have given a buy rating and two have assigned a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of $72.87.
Foot Locker (NYSE:FL) opened at 68.87 on Friday. The company has a market cap of $9.18 billion, a price-to-earnings ratio of 17.13 and a beta of 0.61. Foot Locker has a 12 month low of $50.90 and a 12 month high of $71.04. The company has a 50-day moving average of $66.78 and a 200-day moving average of $60.66.
Foot Locker (NYSE:FL) last announced its quarterly earnings data on Friday, August 19th. The company reported $0.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.90 by $0.04. The business had revenue of $1.78 billion for the quarter, compared to the consensus estimate of $1.76 billion. Foot Locker had a net margin of 7.35% and a return on equity of 23.99%. Foot Locker’s quarterly revenue was up 5.0% on a year-over-year basis. During the same quarter last year, the company posted $0.84 earnings per share. Analysts predict that Foot Locker will post $4.76 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, October 28th. Stockholders of record on Friday, October 14th will be given a dividend of $0.275 per share. The ex-dividend date is Wednesday, October 12th. This represents a $1.10 annualized dividend and a dividend yield of 1.60%. Foot Locker’s payout ratio is currently 27.23%.
In other news, Chairman Richard A. Johnson sold 50,000 shares of the business’s stock in a transaction dated Friday, August 19th. The stock was sold at an average price of $68.04, for a total transaction of $3,402,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Lauren B. Peters sold 20,000 shares of the business’s stock in a transaction dated Monday, August 22nd. The stock was sold at an average price of $68.00, for a total value of $1,360,000.00. Following the transaction, the chief financial officer now owns 139,597 shares of the company’s stock, valued at $9,492,596. The disclosure for this sale can be found here. Insiders own 2.92% of the company’s stock.
Institutional investors have recently bought and sold shares of the company. Origin Asset Management LLP raised its position in Foot Locker by 19.0% in the first quarter. Origin Asset Management LLP now owns 449,497 shares of the company’s stock valued at $28,993,000 after buying an additional 71,653 shares during the last quarter. Capital Fund Management S.A. boosted its position in Foot Locker by 191.7% in the second quarter. Capital Fund Management S.A. now owns 512,644 shares of the company’s stock valued at $28,124,000 after buying an additional 336,925 shares during the period. Geode Capital Management LLC boosted its position in Foot Locker by 9.3% in the first quarter. Geode Capital Management LLC now owns 997,816 shares of the company’s stock valued at $64,326,000 after buying an additional 85,188 shares during the period. Springbok Capital Management LLC boosted its position in Foot Locker by 562.3% in the first quarter. Springbok Capital Management LLC now owns 8,000 shares of the company’s stock valued at $516,000 after buying an additional 6,792 shares during the period. Finally, Fulton Bank N.A. boosted its position in Foot Locker by 2.1% in the second quarter. Fulton Bank N.A. now owns 10,046 shares of the company’s stock valued at $551,000 after buying an additional 207 shares during the period. Institutional investors own 98.06% of the company’s stock.
About Foot Locker
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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