Zacks Investment Research upgraded shares of Foot Locker (NYSE:FL) from a hold rating to a buy rating in a research report report published on Wednesday morning. They currently have $63.00 target price on the athletic footwear retailer’s stock.
According to Zacks, “Shares of Foot Locker have surged and outpaced the industry so far in the 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 estimates. Although sales fell marginally, earnings grew on a year-over-year basis. However, higher SG&A expenses rate remains an overhang on margin.”
A number of other analysts also recently weighed in on the stock. OTR Global upgraded shares of Foot Locker to a positive rating in a report on Thursday, August 16th. Wells Fargo & Co upgraded shares of Foot Locker from a market perform rating to an outperform rating and boosted their target price for the stock from $50.00 to $58.00 in a report on Monday, September 10th. ValuEngine upgraded shares of Foot Locker from a sell rating to a hold rating in a report on Monday, August 20th. Canaccord Genuity set a $63.00 target price on shares of Foot Locker and gave the stock a buy rating in a report on Monday, September 24th. Finally, Wedbush restated a positive rating on shares of Foot Locker in a report on Tuesday, August 28th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and sixteen have assigned a buy rating to the stock. The company currently has a consensus rating of Buy and a consensus target price of $59.09.
Foot Locker (NYSE:FL) last posted its earnings results on Tuesday, November 20th. The athletic footwear retailer reported $0.95 earnings per share for the quarter, topping analysts’ consensus estimates of $0.92 by $0.03. Foot Locker had a net margin of 4.24% and a return on equity of 21.01%. The firm had revenue of $1.86 billion for the quarter, compared to the consensus estimate of $1.86 billion. During the same period in the previous year, the firm posted $0.87 EPS. The business’s quarterly revenue was down .5% on a year-over-year basis. On average, equities analysts forecast that Foot Locker will post 4.5 earnings per share for the current fiscal year.
The company 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 dividend of $0.345 per share. The ex-dividend date of this dividend is Thursday, January 17th. This represents a $1.38 dividend on an annualized basis and a dividend yield of 2.60%. Foot Locker’s dividend payout ratio is presently 33.58%.
In related news, VP John A. Maurer sold 5,000 shares of Foot Locker stock in a transaction dated Wednesday, November 21st. The shares were sold at an average price of $53.00, for a total transaction of $265,000.00. Following the completion of the transaction, the vice president now directly owns 25,581 shares of the company’s stock, valued at approximately $1,355,793. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Matthew M. Mckenna sold 7,000 shares of Foot Locker stock in a transaction dated Monday, November 19th. The stock was sold at an average price of $50.81, for a total transaction of $355,670.00. Following the transaction, the director now directly owns 30,459 shares of the company’s stock, valued at $1,547,621.79. The disclosure for this sale can be found here. 2.90% of the stock is currently owned by insiders.
Institutional investors have recently added to or reduced their stakes in the business. O Shaughnessy Asset Management LLC purchased a new stake in Foot Locker in the 3rd quarter valued at about $124,000. Stratos Wealth Partners LTD. purchased a new stake in Foot Locker in the 3rd quarter valued at about $146,000. Stephens Inc. AR purchased a new stake in Foot Locker in the 2nd quarter valued at about $203,000. Fiera Capital Corp purchased a new stake in Foot Locker in the 2nd quarter valued at about $208,000. Finally, Advisors Asset Management Inc. boosted its position in Foot Locker by 61.6% in the 2nd quarter. Advisors Asset Management Inc. now owns 4,176 shares of the athletic footwear retailer’s stock valued at $220,000 after buying an additional 1,592 shares during the period. 99.96% of the stock is owned by institutional investors.
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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