Equities researchers at Pivotal Research began coverage on shares of Foot Locker (NYSE:FL) in a research note issued on Thursday, MarketBeat.com reports. The brokerage set a “buy” rating and a $65.00 price target on the athletic footwear retailer’s stock. Pivotal Research’s target price points to a potential upside of 25.99% from the stock’s previous close.
The analysts wrote, “We don’t believe that 12x is an inappropriate multiple, but when you apply it to our FY19 (tax adjusted) EPS estimate, we get a stock price of $65, which is ~25% upside from current levels. Also attractive is that, starting with 1Q18, FL will be lapping easier comparisons, and this accelerates with 2Q18. We strongly believe that the best time to buy retail stocks is when the comparisons get easier. That said, an easy comparison only gets a retailer so far; there still needs to be a catalyst for driving growth. For FL, the catalyst is lots of newness in the athletic footwear pipeline. Even more importantly, we like FL’s prospects of recapturing lost merchandise margin. All told, FL’s risk/reward looks favorable; hence our BUY rating.””
Several other equities analysts have also commented on FL. Zacks Investment Research raised Foot Locker from a “hold” rating to a “buy” rating and set a $53.00 price target on the stock in a research report on Tuesday, December 26th. Cowen set a $37.00 price target on Foot Locker and gave the stock a “hold” rating in a research report on Monday, October 23rd. Robert W. Baird reissued a “hold” rating and set a $37.00 price target on shares of Foot Locker in a research report on Sunday, October 29th. Deutsche Bank raised Foot Locker from a “hold” rating to a “buy” rating and boosted their price target for the stock from $38.00 to $45.00 in a research report on Friday, November 17th. Finally, Canaccord Genuity reissued a “hold” rating and set a $39.00 price target on shares of Foot Locker in a research report on Friday, October 20th. Two equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and fourteen have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $55.62.
Foot Locker (NYSE:FL) last released its quarterly earnings data on Friday, November 17th. The athletic footwear retailer reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.07. The business had revenue of $1.87 billion for the quarter, compared to analyst estimates of $1.82 billion. Foot Locker had a return on equity of 19.96% and a net margin of 6.79%. The company’s revenue was down .8% compared to the same quarter last year. During the same period in the previous year, the company posted $1.13 EPS. equities analysts expect that Foot Locker will post 4.09 earnings per share for the current fiscal year.
In other Foot Locker news, Director Matthew M. Mckenna sold 10,899 shares of Foot Locker stock in a transaction that occurred on Tuesday, January 9th. The stock was sold at an average price of $45.82, for a total transaction of $499,392.18. Following the sale, the director now directly owns 35,000 shares in the company, valued at approximately $1,603,700. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Richard A. Johnson sold 25,000 shares of the business’s stock in a transaction that occurred on Friday, January 19th. The shares were sold at an average price of $50.05, for a total value of $1,251,250.00. The disclosure for this sale can be found here. Insiders have sold a total of 56,899 shares of company stock worth $2,801,692 over the last 90 days. 2.90% of the stock is owned by company insiders.
Hedge funds and other institutional investors have recently modified their holdings of the company. D.A. Davidson & CO. increased its holdings in shares of Foot Locker by 50.3% in the 2nd quarter. D.A. Davidson & CO. now owns 2,133 shares of the athletic footwear retailer’s stock valued at $105,000 after acquiring an additional 714 shares during the last quarter. Smithfield Trust Co. increased its holdings in shares of Foot Locker by 276.2% in the 3rd quarter. Smithfield Trust Co. now owns 3,198 shares of the athletic footwear retailer’s stock valued at $113,000 after acquiring an additional 2,348 shares during the last quarter. Assetmark Inc. increased its holdings in shares of Foot Locker by 205.0% in the 3rd quarter. Assetmark Inc. now owns 3,834 shares of the athletic footwear retailer’s stock valued at $135,000 after acquiring an additional 2,577 shares during the last quarter. Exane Derivatives increased its holdings in shares of Foot Locker by 110,475.0% in the 3rd quarter. Exane Derivatives now owns 4,423 shares of the athletic footwear retailer’s stock valued at $156,000 after acquiring an additional 4,419 shares during the last quarter. Finally, Cigna Investments Inc. New bought a new stake in shares of Foot Locker in the 4th quarter valued at approximately $217,000. Institutional investors and hedge funds own 90.27% of the company’s stock.
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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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