Foot Locker (FL) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Foot Locker (NYSE:FL) from a buy rating to a hold rating in a research report released on Tuesday morning.

According to Zacks, “Shares of Foot Locker have surged and outpaced the industry in a year. The company’s focus 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 bode well. The company also 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 format opportunities and executing shop-in-shop spaces in collaboration with vendors. Certainly, these efforts would help attain long-term goals that include sales of $10 billion and net income margin of 8.5%. The company’s third-quarter fiscal 2018 results are the testimony of the same, wherein both the top and bottom lines beat expectations. Although sales fell marginally, earnings score high on a year-over-year basis. However, higher SG&A expenses rate remains an overhang on margin.”

A number of other equities research analysts have also recently issued reports on FL. OTR Global upgraded Foot Locker to a positive rating in a research note on Thursday, August 16th. Canaccord Genuity set a $66.00 price objective on Foot Locker and gave the stock a buy rating in a research note on Friday, August 17th. Pivotal Research reiterated a buy rating and set a $64.00 price objective on shares of Foot Locker in a research note on Monday, August 20th. ValuEngine upgraded Foot Locker from a sell rating to a hold rating in a research note on Monday, August 20th. Finally, Telsey Advisory Group dropped their price objective on Foot Locker from $62.00 to $58.00 and set an outperform rating on the stock in a research note on Monday, August 27th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and sixteen have issued a buy rating to the company’s stock. The stock presently has an average rating of Buy and a consensus target price of $59.09.

Shares of Foot Locker stock opened at $53.05 on Tuesday. Foot Locker has a 12-month low of $38.17 and a 12-month high of $59.40. The company has a market cap of $6.26 billion, a PE ratio of 12.91, a P/E/G ratio of 1.61 and a beta of 0.85. The company has a current ratio of 3.42, a quick ratio of 1.54 and a debt-to-equity ratio of 0.05.

Foot Locker (NYSE:FL) last announced its quarterly earnings data on Tuesday, November 20th. The athletic footwear retailer reported $0.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.92 by $0.03. Foot Locker had a return on equity of 21.01% and a net margin of 4.24%. The company had revenue of $1.86 billion for the quarter, compared to analysts’ expectations of $1.86 billion. During the same quarter in the prior year, the business posted $0.87 EPS. The business’s revenue was down .5% compared to the same quarter last year. As a group, equities analysts expect that Foot Locker will post 4.5 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 1st. Investors of record on Friday, January 18th will be paid a $0.345 dividend. This represents a $1.38 dividend on an annualized basis and a yield of 2.60%. The ex-dividend date of this dividend is Thursday, January 17th. Foot Locker’s dividend payout ratio (DPR) is presently 33.58%.

In related news, VP John A. Maurer sold 5,000 shares of the stock in a transaction on Wednesday, November 21st. The stock was sold at an average price of $53.00, for a total value of $265,000.00. Following the sale, the vice president now owns 25,581 shares in the company, valued at approximately $1,355,793. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Matthew M. Mckenna sold 7,000 shares of the stock in a transaction on Monday, November 19th. The shares were sold at an average price of $50.81, for a total value of $355,670.00. Following the completion of the sale, the director now owns 30,459 shares in the company, valued at approximately $1,547,621.79. The disclosure for this sale can be found here. 2.90% of the stock is currently owned by corporate insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of FL. O Shaughnessy Asset Management LLC bought a new position in Foot Locker during the 3rd quarter worth $124,000. Stratos Wealth Partners LTD. bought a new position in Foot Locker during the 3rd quarter worth $146,000. Stephens Inc. AR bought a new position in Foot Locker during the 2nd quarter worth $203,000. Fiera Capital Corp bought a new position in Foot Locker during the 2nd quarter worth $208,000. Finally, Advisors Asset Management Inc. increased its position in Foot Locker by 61.6% during the 2nd quarter. Advisors Asset Management Inc. now owns 4,176 shares of the athletic footwear retailer’s stock worth $220,000 after buying an additional 1,592 shares during the period. Institutional investors and hedge funds own 99.96% of the company’s stock.

About Foot Locker

Foot Locker, Inc, through its subsidiaries, operates as an athletic shoes and apparel retailer. The company operates in two segments, Athletic Stores and Direct-to-Customers. The Athletic Stores segment retails athletic footwear, apparel, accessories, and equipment under various formats, including Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep, and SIX:02.

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