Zacks Investment Research Lowers Foot Locker Inc. (FL) to Hold
Foot Locker Inc. (NYSE:FL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued 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.”
A number of other research analysts also recently issued reports on FL. Bank of America Corp. reiterated a “buy” rating on shares of Foot Locker in a report on Friday, June 10th. Robert W. Baird restated an “outperform” rating and issued a $78.00 price target on shares of Foot Locker in a research note on Tuesday, June 14th. Piper Jaffray Cos. restated a “buy” rating on shares of Foot Locker in a research note on Wednesday, June 15th. Brean Capital restated a “buy” rating on shares of Foot Locker in a research note on Thursday, June 16th. Finally, Jefferies Group restated a “buy” rating and issued a $73.00 price target on shares of Foot Locker in a research note on Wednesday, June 29th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating, fifteen have given a buy rating and two have issued a strong buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus price target of $73.53.
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Shares of Foot Locker (NYSE:FL) traded up 1.49% during midday trading on Friday, reaching $68.96. 1,112,197 shares of the company’s stock traded hands. The stock’s 50 day moving average price is $66.56 and its 200 day moving average price is $60.67. Foot Locker has a 52-week low of $50.90 and a 52-week high of $71.67. The firm has a market capitalization of $9.19 billion, a P/E ratio of 17.15 and a beta of 0.61.
Foot Locker (NYSE:FL) last released its quarterly earnings results on Friday, August 19th. The company reported $0.94 EPS for the quarter, topping the Zacks’ consensus estimate of $0.90 by $0.04. The company had revenue of $1.78 billion for the quarter, compared to analyst estimates of $1.76 billion. Foot Locker had a return on equity of 23.99% and a net margin of 7.35%. Foot Locker’s revenue was up 5.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.84 earnings per share. On average, equities research analysts anticipate that Foot Locker will post $4.76 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 28th. Investors of record on Friday, October 14th will be given a dividend of $0.275 per share. The ex-dividend date of this dividend is Wednesday, October 12th. This represents a $1.10 dividend on an annualized basis and a yield of 1.62%. Foot Locker’s dividend payout ratio is currently 27.23%.
In related news, CFO Lauren B. Peters sold 20,000 shares of the business’s stock in a transaction on Monday, August 22nd. The stock was sold at an average price of $68.00, for a total transaction of $1,360,000.00. Following the sale, the chief financial officer now owns 139,597 shares in the company, valued at approximately $9,492,596. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Richard A. Johnson sold 50,000 shares of the company’s stock in a transaction dated 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. Corporate insiders own 2.90% of the company’s stock.
Several large investors have recently added to or reduced their stakes in FL. Aperio Group LLC raised its stake in Foot Locker by 46.6% in the first quarter. Aperio Group LLC now owns 40,714 shares of the company’s stock worth $2,626,000 after buying an additional 12,941 shares during the period. Ngam Advisors L.P. raised its stake in Foot Locker by 114.5% in the first quarter. Ngam Advisors L.P. now owns 58,471 shares of the company’s stock worth $3,771,000 after buying an additional 31,216 shares during the period. BlackRock Inc. raised its stake in Foot Locker by 10.3% in the first quarter. BlackRock Inc. now owns 174,921 shares of the company’s stock worth $11,282,000 after buying an additional 16,263 shares during the period. BlackRock Group LTD raised its stake in Foot Locker by 2.6% in the first quarter. BlackRock Group LTD now owns 859,192 shares of the company’s stock worth $55,418,000 after buying an additional 21,483 shares during the period. Finally, Palisade Capital Management LLC NJ acquired a new position in shares of Foot Locker during the first quarter worth about $3,549,000. Hedge funds and other 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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