Foot Locker (NYSE:FL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Monday.
According to Zacks, “Shares of Foot Locker came under pressure, in spite of reporting positive earnings surprise for the second straight quarter during fourth-quarter fiscal 2017. This was due to lower-than-expected top-line results and a muted outlook for the first quarter with comparable sales and margins expected to remain soft. Nevertheless, the company is trying to improve performance through operational and financial initiatives, which is likely to provide cushion to the stock. The company now focuses on development of supply chain, improvement of mobile and web platforms, implementation of new point-of-sale software worldwide, and expansion of data analytics capabilities. Apart from these, the company plans to spend a major portion of the capital on its fleet of stores, including revamping and remodeling of the same. Further, it is exploring off-mall retail formats opportunities and executing shop-in-shop spaces in collaboration with vendors.”
Other equities research analysts have also recently issued reports about the company. Jefferies Group set a $61.00 price target on Foot Locker and gave the company a “buy” rating in a research note on Friday, November 17th. Deutsche Bank upgraded Foot Locker from a “hold” rating to a “buy” rating and boosted their price target for the company from $38.00 to $45.00 in a research note on Friday, November 17th. Citigroup boosted their price target on Foot Locker from $40.00 to $47.00 and gave the company a “buy” rating in a research note on Monday, November 20th. ValuEngine upgraded Foot Locker from a “hold” rating to a “buy” rating in a research note on Friday, December 1st. Finally, Canaccord Genuity upgraded Foot Locker from a “hold” rating to a “buy” rating and upped their target price for the stock from $42.00 to $64.00 in a research note on Friday, December 15th. Two equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and fifteen have given a buy rating to the company’s stock. Foot Locker presently has a consensus rating of “Hold” and a consensus price target of $54.31.
Foot Locker (NYSE:FL) last issued its quarterly earnings results on Friday, March 2nd. The athletic footwear retailer reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.25 by $0.01. The business had revenue of $2.21 billion during the quarter, compared to analysts’ expectations of $2.23 billion. Foot Locker had a return on equity of 19.32% and a net margin of 3.65%. The firm’s revenue for the quarter was up 4.6% compared to the same quarter last year. During the same period in the previous year, the company posted $1.37 earnings per share. equities research analysts predict that Foot Locker will post 4.4 earnings per share for the current fiscal year.
In related news, CEO Richard A. Johnson sold 25,000 shares of the stock in a transaction on Friday, January 19th. The stock was sold at an average price of $50.05, for a total value of $1,251,250.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Matthew M. Mckenna sold 10,899 shares of the stock in a transaction on Tuesday, January 9th. The shares were sold at an average price of $45.82, for a total value of $499,392.18. Following the completion of the sale, the director now owns 35,000 shares of the company’s stock, valued at $1,603,700. The disclosure for this sale can be found here. Insiders sold a total of 56,899 shares of company stock valued at $2,801,692 over the last quarter. 1.73% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Bank of New York Mellon Corp increased its holdings in Foot Locker by 9.6% in the fourth quarter. Bank of New York Mellon Corp now owns 3,935,081 shares of the athletic footwear retailer’s stock valued at $184,475,000 after purchasing an additional 343,488 shares during the period. Two Sigma Advisers LP increased its holdings in Foot Locker by 43.0% in the fourth quarter. Two Sigma Advisers LP now owns 1,767,441 shares of the athletic footwear retailer’s stock valued at $82,858,000 after purchasing an additional 531,710 shares during the period. Dimensional Fund Advisors LP increased its holdings in Foot Locker by 36.8% in the third quarter. Dimensional Fund Advisors LP now owns 1,329,354 shares of the athletic footwear retailer’s stock valued at $46,817,000 after purchasing an additional 357,669 shares during the period. Arrowstreet Capital Limited Partnership increased its holdings in Foot Locker by 7,025.7% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,132,990 shares of the athletic footwear retailer’s stock valued at $53,115,000 after purchasing an additional 1,117,090 shares during the period. Finally, Guggenheim Capital LLC increased its holdings in Foot Locker by 8.6% in the fourth quarter. Guggenheim Capital LLC now owns 1,002,535 shares of the athletic footwear retailer’s stock valued at $47,000,000 after purchasing an additional 79,108 shares during the period. Institutional investors and hedge funds own 96.49% of the company’s stock.
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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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