Foot Locker Inc. (FL) Raised to Buy at Zacks Investment Research
Foot Locker Inc. (NYSE:FL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The firm currently has a $75.00 price objective on the stock. Zacks Investment Research’s price target would indicate a potential upside of 11.94% from the company’s previous close.
According to Zacks, “After commencing fiscal 2016 on a soft note, Foot Locker made a sharp comeback with better-than-expected results in the second quarter. Sturdy comparable sales performance, cost containment efforts and strategic initiatives helped the company to continue registering year-over-year growth in both the top and bottom lines. Management reaffirmed its projection of a mid-single-digit increase in comparable sales in fiscal 2016. Further, it continues to expect double-digit growth in earnings per share for the fiscal year. We believe that continuous exploitation of opportunities such as children’s business, shop-in-shop expansion, store banner.com business, store refurbishment and enhancement of assortments, will benefit the company in the long run. However, a competitive retail landscape, fashion obsolescence and foreign currency headwinds remain concerns.”
Several other equities research analysts have also commented on the stock. Jefferies Group reiterated a “buy” rating and set a $73.00 price target on shares of Foot Locker in a research note on Wednesday, June 29th. Susquehanna assumed coverage on shares of Foot Locker in a research note on Friday, August 12th. They set a “positive” rating and a $73.00 price target on the stock. JPMorgan Chase & Co. reissued a “focus list” rating on shares of Foot Locker in a research report on Monday, September 26th. OTR Global downgraded shares of Foot Locker to a “positive” rating in a research report on Friday, August 19th. Finally, Guggenheim assumed coverage on shares of Foot Locker in a research report on Friday, September 30th. They set a “neutral” rating on the stock. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, sixteen have issued a buy rating and two have issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average target price of $73.53.
Foot Locker (NYSE:FL) traded up 1.81% during trading on Wednesday, reaching $68.21. 492,872 shares of the company’s stock traded hands. Foot Locker has a 12-month low of $50.90 and a 12-month high of $71.71. The company has a 50 day moving average price of $66.14 and a 200-day moving average price of $60.56. The company has a market cap of $9.09 billion, a PE ratio of 16.97 and a beta of 0.61.
Foot Locker (NYSE:FL) last announced its quarterly earnings data on Friday, August 19th. The company reported $0.94 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.90 by $0.04. Foot Locker had a net margin of 7.35% and a return on equity of 23.99%. The business had revenue of $1.78 billion for the quarter, compared to analyst estimates of $1.76 billion. During the same period last year, the business earned $0.84 EPS. The company’s revenue was up 5.0% on a year-over-year basis. On average, equities research analysts forecast that Foot Locker will post $4.76 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 28th. Stockholders of record on Friday, October 14th will be given a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a dividend yield of 1.64%. The ex-dividend date is Wednesday, October 12th. Foot Locker’s dividend payout ratio is presently 27.23%.
In related news, Chairman Richard A. Johnson sold 50,000 shares of the business’s stock in a transaction that occurred on Friday, August 19th. The shares were sold at an average price of $68.04, for a total value of $3,402,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Jarobin Gilbert, Jr. sold 1,000 shares of the business’s stock in a transaction that occurred on Friday, July 8th. The shares were sold at an average price of $57.36, for a total transaction of $57,360.00. Following the completion of the sale, the director now owns 12,876 shares of the company’s stock, valued at $738,567.36. The disclosure for this sale can be found here. 2.92% of the stock is currently owned by insiders.
A number of large investors have recently added to or reduced their stakes in the stock. Global X Management Co. LLC increased its stake in Foot Locker by 310.6% in the second quarter. Global X Management Co. LLC now owns 1,823 shares of the company’s stock valued at $100,000 after buying an additional 1,379 shares in the last quarter. Euclid Advisors LLC acquired a new stake in Foot Locker during the second quarter valued at about $127,000. Huntington National Bank increased its stake in Foot Locker by 187.3% in the second quarter. Huntington National Bank now owns 2,396 shares of the company’s stock valued at $131,000 after buying an additional 1,562 shares in the last quarter. Pacer Advisors Inc. increased its stake in Foot Locker by 10.2% in the second quarter. Pacer Advisors Inc. now owns 2,574 shares of the company’s stock valued at $141,000 after buying an additional 239 shares in the last quarter. Finally, FUKOKU MUTUAL LIFE INSURANCE Co increased its stake in Foot Locker by 27.3% in the second quarter. FUKOKU MUTUAL LIFE INSURANCE Co now owns 2,800 shares of the company’s stock valued at $154,000 after buying an additional 600 shares in the last quarter. Hedge funds and other institutional investors own 98.06% of the company’s stock.
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’s Athletic Stores segment is an athletic footwear and apparel retailer whose formats include Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Footaction, SIX:02, Runners Point Group, including Runners Point and Sidestep.
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