Foot Locker Inc. (FL) Upgraded to “Buy” by Zacks Investment Research
Foot Locker Inc. (NYSE:FL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Wednesday. The brokerage currently has a $75.00 price target on the stock. Zacks Investment Research’s target price suggests a potential upside of 8.62% 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 also recently issued reports on the stock. Citigroup Inc. increased their price target on shares of Foot Locker from $68.00 to $79.00 and gave the stock a “buy” rating in a report on Monday, August 22nd. Jefferies Group upped their price objective on shares of Foot Locker from $73.00 to $80.00 and gave the stock a “buy” rating in a research report on Monday, August 22nd. Brean Capital upped their price objective on shares of Foot Locker from $68.00 to $77.00 and gave the stock a “buy” rating in a research report on Monday, August 22nd. Susquehanna upped their price objective on shares of Foot Locker from $73.00 to $80.00 and gave the stock a “positive” rating in a research report on Monday, August 22nd. Finally, Telsey Advisory Group upped their price objective on shares of Foot Locker from $72.00 to $78.00 and gave the stock an “outperform” rating in a research report on Monday, August 22nd. One analyst has rated the stock with a sell rating, seven have assigned a hold rating, fifteen have given a buy rating and two have given a strong buy rating to the stock. Foot Locker presently has an average rating of “Buy” and a consensus price target of $73.53.
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Shares of Foot Locker (NYSE:FL) traded up 1.62% during mid-day trading on Wednesday, reaching $69.05. 2,590,461 shares of the company’s stock were exchanged. Foot Locker has a 1-year low of $50.90 and a 1-year high of $71.30. The stock has a market capitalization of $9.20 billion, a PE ratio of 17.18 and a beta of 0.61. The company’s 50 day moving average is $66.77 and its 200 day moving average is $60.68.
Foot Locker (NYSE:FL) last released its quarterly earnings data on Friday, August 19th. The company reported $0.94 EPS for the quarter, beating 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%. The business’s revenue for the quarter was up 5.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.84 EPS. Equities research analysts anticipate that Foot Locker will post $4.76 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, October 28th. Investors of record on Friday, October 14th will be issued a $0.275 dividend. The ex-dividend date is Wednesday, October 12th. This represents a $1.10 annualized dividend and a yield of 1.59%. Foot Locker’s dividend payout ratio (DPR) is 27.23%.
In related news, CFO Lauren B. Peters sold 20,000 shares of the firm’s stock in a transaction that occurred on Monday, August 22nd. The shares were sold at an average price of $68.00, for a total value of $1,360,000.00. Following the sale, the chief financial officer now owns 139,597 shares of the company’s stock, valued at $9,492,596. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Lewis Phillip Kimble sold 43,479 shares of the firm’s stock in a transaction that occurred on Wednesday, September 7th. The shares were sold at an average price of $65.40, for a total transaction of $2,843,526.60. Following the completion of the sale, the chief executive officer now directly owns 26,131 shares in the company, valued at approximately $1,708,967.40. The disclosure for this sale can be found here. 2.90% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently modified their holdings of the stock. Origin Asset Management LLP boosted its stake in Foot Locker by 19.0% in the first quarter. Origin Asset Management LLP now owns 449,497 shares of the company’s stock worth $28,993,000 after buying an additional 71,653 shares during the last quarter. Capital Fund Management S.A. boosted its stake 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 worth $28,124,000 after buying an additional 336,925 shares during the last quarter. Geode Capital Management LLC boosted its stake in Foot Locker by 9.3% in the first quarter. Geode Capital Management LLC now owns 997,816 shares of the company’s stock worth $64,326,000 after buying an additional 85,188 shares during the last quarter. Springbok Capital Management LLC boosted its stake in Foot Locker by 562.3% in the first quarter. Springbok Capital Management LLC now owns 8,000 shares of the company’s stock worth $516,000 after buying an additional 6,792 shares during the last quarter. Finally, Fulton Bank N.A. boosted its stake in Foot Locker by 2.1% in the second quarter. Fulton Bank N.A. now owns 10,046 shares of the company’s stock worth $551,000 after buying an additional 207 shares during the last quarter. 98.06% of the stock is currently owned by hedge funds and other institutional investors.
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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