Zacks Investment Research Lowers Foot Locker (FL) to Hold
Foot Locker (NYSE:FL) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “Investors gave thumbs up to Foot Locker’s third-quarter fiscal 2017 results, wherein both the top and bottom lines beat the consensus mark. This led the stock to take a huge leap and outpace the industry in three months. Clearly, the third-quarter results gave a fresh breath of life to the stock, which in the recent past had struggled on account of dismal performance in the preceding two quarters. However, analysts believe that the euphoria surrounding the stock may be short lived, as Foot Locker continues to register year-over-year decline in both sales and earnings per share. Management now expects comps to decline in the range of 2-4% in the final quarter with earnings per share projected to decrease in the band of 15-25%. Margins are also expected to remain under pressure. Nevertheless, the company is effectively managing inventory, investing in digital platforms, improving supply chain infrastructure and rationalizing store fleet.”
FL has been the topic of several other reports. Jefferies Group set a $61.00 price target on shares of Foot Locker and gave the company a “buy” rating in a report on Friday, November 17th. Canaccord Genuity set a $67.00 price objective on shares of Foot Locker and gave the stock a “buy” rating in a research report on Sunday, January 7th. ValuEngine upgraded shares of Foot Locker from a “hold” rating to a “buy” rating in a research report on Monday, October 2nd. B. Riley set a $40.00 price objective on shares of Foot Locker and gave the stock a “hold” rating in a research report on Monday, November 20th. Finally, Buckingham Research downgraded shares of Foot Locker from a “buy” rating to a “neutral” rating in a research report on Monday, October 23rd. They noted that the move was a valuation call. Two equities research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and twelve have assigned a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus price target of $53.82.
Foot Locker (NYSE:FL) last posted its quarterly earnings results on Friday, November 17th. The athletic footwear retailer reported $0.87 EPS for the quarter, beating the consensus estimate of $0.80 by $0.07. Foot Locker had a net margin of 6.79% and a return on equity of 19.96%. The company had revenue of $1.87 billion for the quarter, compared to analyst estimates of $1.82 billion. During the same period in the prior year, the company earned $1.13 earnings per share. The firm’s revenue was down .8% on a year-over-year basis. research analysts predict that Foot Locker will post 4.08 EPS for the current year.
In related news, Director Matthew M. Mckenna sold 10,899 shares of the stock in a transaction that occurred on Tuesday, January 9th. The shares were sold at an average price of $45.82, for a total transaction of $499,392.18. Following the completion of the transaction, the director now owns 35,000 shares of the company’s stock, valued at approximately $1,603,700. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.73% of the company’s stock.
Hedge funds have recently modified their holdings of the business. Franklin Resources Inc. raised its holdings in shares of Foot Locker by 53.7% in the 2nd quarter. Franklin Resources Inc. now owns 19,035 shares of the athletic footwear retailer’s stock valued at $938,000 after purchasing an additional 6,651 shares in the last quarter. Amalgamated Bank increased its holdings in shares of Foot Locker by 17.7% in the 2nd quarter. Amalgamated Bank now owns 25,707 shares of the athletic footwear retailer’s stock worth $1,267,000 after acquiring an additional 3,871 shares during the period. BT Investment Management Ltd acquired a new stake in shares of Foot Locker in the 2nd quarter worth about $697,000. Laurion Capital Management LP bought a new position in Foot Locker in the 2nd quarter valued at about $3,552,000. Finally, Profund Advisors LLC grew its position in Foot Locker by 23.0% in the 2nd quarter. Profund Advisors LLC now owns 4,801 shares of the athletic footwear retailer’s stock valued at $237,000 after buying an additional 897 shares in the last quarter. 89.91% of the stock is owned by 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 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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