Zacks Investment Research Lowers Foot Locker, Inc. (FL) to Sell
Foot Locker, Inc. (NYSE:FL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Friday.
According to Zacks, “Foot Locker, which has underperformed the industry in the past three months, has been witnessing a downtrend in estimates. This is due to dismal first quarter performance and a not so encouraging outlook for the second quarter and fiscal 2017. Delay in tax refunds broke the positive earnings surprise streak of Foot Locker, as earnings missed the estimate in the first quarter. We further noticed that total sales and comps grew marginally in the first quarter of fiscal 2017, which is in sharp contrast to the company’s performance in fiscal 2016. Nevertheless, management is working on all aspects to attain mid-single digit earnings per share growth in fiscal 2017 backed by effective implementation of operational and financial initiatives. 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, bode well.”
Several other equities analysts have also recently issued reports on the company. Oppenheimer Holdings, Inc. began coverage on Foot Locker in a research note on Friday. They set a “market perform” rating on the stock. TheStreet cut Foot Locker from a “b-” rating to a “c+” rating in a research note on Friday, June 30th. BidaskClub raised Foot Locker from a “strong sell” rating to a “sell” rating in a research note on Wednesday. Barclays PLC reissued an “overweight” rating and set a $80.00 target price on shares of Foot Locker in a research note on Thursday, June 22nd. Finally, Jefferies Group LLC set a $80.00 target price on Foot Locker and gave the company a “buy” rating in a research note on Tuesday, June 20th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating, sixteen have issued a buy rating and one has assigned a strong buy rating to the company. Foot Locker has a consensus rating of “Buy” and a consensus price target of $74.83.
Foot Locker (NYSE FL) traded down 0.20% during trading on Friday, hitting $49.98. The company’s stock had a trading volume of 4,129,058 shares. The firm has a 50 day moving average of $57.60 and a 200 day moving average of $69.18. The firm has a market cap of $6.56 billion, a P/E ratio of 10.25 and a beta of 0.70. Foot Locker has a 12 month low of $44.87 and a 12 month high of $79.43.
The business also recently announced a quarterly dividend, which will be paid on Friday, July 28th. Shareholders of record on Friday, July 14th will be issued a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 2.48%. The ex-dividend date is Wednesday, July 12th. Foot Locker’s dividend payout ratio (DPR) is 25.36%.
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In other news, Director Jarobin Gilbert, Jr. sold 5,600 shares of the company’s stock in a transaction on Wednesday, May 24th. The stock was sold at an average price of $59.40, for a total transaction of $332,640.00. Following the transaction, the director now directly owns 8,964 shares of the company’s stock, valued at $532,461.60. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Paulette Alviti sold 8,000 shares of the company’s stock in a transaction on Thursday, April 20th. The shares were sold at an average price of $74.50, for a total value of $596,000.00. Following the transaction, the senior vice president now directly owns 36,641 shares in the company, valued at $2,729,754.50. The disclosure for this sale can be found here. Insiders own 2.90% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in FL. Vanguard Group Inc. increased its position in shares of Foot Locker by 2.0% in the first quarter. Vanguard Group Inc. now owns 12,986,214 shares of the athletic footwear retailer’s stock worth $971,499,000 after buying an additional 257,770 shares during the last quarter. BlackRock Inc. increased its position in shares of Foot Locker by 2,189.3% in the first quarter. BlackRock Inc. now owns 9,163,944 shares of the athletic footwear retailer’s stock worth $685,553,000 after buying an additional 8,763,641 shares during the last quarter. State Street Corp increased its position in shares of Foot Locker by 1.7% in the first quarter. State Street Corp now owns 6,167,116 shares of the athletic footwear retailer’s stock worth $461,353,000 after buying an additional 105,750 shares during the last quarter. Bank of New York Mellon Corp increased its position in shares of Foot Locker by 1.5% in the first quarter. Bank of New York Mellon Corp now owns 2,936,340 shares of the athletic footwear retailer’s stock worth $219,668,000 after buying an additional 42,736 shares during the last quarter. Finally, Skandinaviska Enskilda Banken AB publ increased its position in shares of Foot Locker by 6.4% in the first quarter. Skandinaviska Enskilda Banken AB publ now owns 2,091,976 shares of the athletic footwear retailer’s stock worth $156,501,000 after buying an additional 126,500 shares during the last quarter. 96.51% 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 is an athletic footwear and apparel retailer, which include businesses, such as include Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep and SIX:02.
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