Foot Locker, Inc. (FL) Raised to “Hold” at Zacks Investment Research
Foot Locker, Inc. (NYSE:FL) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Monday.
According to Zacks, “Foot Locker has underperformed the industry in the past three months. This is due to dismal performance for the second straight quarter in fiscal 2017 and a bleak outlook. The company’s results in the second quarter were impacted by soft performance of “some recent top styles” and lack of innovative fresh products in the market. Challenging retail landscape and changing consumer spending pattern are making operating environment tough. Management now expects comparable sales to decline in the range of 3–4% in remaining part of 2017 with earnings per share projected to decrease in the band of 20–30% during the second half. Margins are also expected to remain pressured going forward. Nevertheless, we believe that building robust capabilities in direct-to-customer unit, rationalizing store fleet and improving supply chain infrastructure may provide cushion to the stock.”
FL has been the subject of several other research reports. ValuEngine lowered shares of Foot Locker from a “buy” rating to a “hold” rating in a research report on Friday, September 1st. Oppenheimer Holdings, Inc. initiated coverage on shares of Foot Locker in a research report on Friday, July 7th. They set a “market perform” rating for the company. Barclays PLC set a $80.00 price target on shares of Foot Locker and gave the company a “buy” rating in a research report on Saturday, August 5th. Morgan Stanley restated an “overweight” rating and set a $50.00 price target (down previously from $65.00) on shares of Foot Locker in a research report on Tuesday, August 29th. Finally, Credit Suisse Group restated a “neutral” rating and set a $52.00 price target (down previously from $66.00) on shares of Foot Locker in a research report on Tuesday, August 1st. Two analysts have rated the stock with a sell rating, fifteen have issued a hold rating and twelve have given a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus price target of $62.88.
Foot Locker (FL) traded down 1.502% on Monday, reaching $31.145. 1,159,750 shares of the company were exchanged. The company’s 50-day moving average price is $34.15 and its 200-day moving average price is $50.48. Foot Locker has a 12-month low of $30.40 and a 12-month high of $79.43. The stock has a market capitalization of $3.86 billion, a P/E ratio of 7.198 and a beta of 0.72.
Foot Locker (NYSE:FL) last posted its quarterly earnings results on Friday, August 18th. The athletic footwear retailer reported $0.62 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.90 by ($0.28). The company had revenue of $1.70 billion for the quarter, compared to the consensus estimate of $1.80 billion. Foot Locker had a net margin of 7.49% and a return on equity of 21.52%. Foot Locker’s quarterly revenue was down 4.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.94 EPS. Equities research analysts anticipate that Foot Locker will post $3.97 earnings per share for the current fiscal year.
Hedge funds have recently bought and sold shares of the stock. Dimensional Fund Advisors LP increased its position in shares of Foot Locker by 10.4% in the second quarter. Dimensional Fund Advisors LP now owns 971,685 shares of the athletic footwear retailer’s stock worth $47,882,000 after purchasing an additional 91,716 shares during the last quarter. Janus Henderson Group PLC increased its position in shares of Foot Locker by 1,291.0% in the second quarter. Janus Henderson Group PLC now owns 203,991 shares of the athletic footwear retailer’s stock worth $10,053,000 after purchasing an additional 189,326 shares during the last quarter. Tobam increased its position in shares of Foot Locker by 47.1% in the second quarter. Tobam now owns 428,449 shares of the athletic footwear retailer’s stock worth $21,114,000 after purchasing an additional 137,206 shares during the last quarter. Bridgewater Associates LP increased its position in shares of Foot Locker by 158.1% in the second quarter. Bridgewater Associates LP now owns 228,939 shares of the athletic footwear retailer’s stock worth $11,282,000 after purchasing an additional 140,253 shares during the last quarter. Finally, Omega Advisors Inc. bought a new position in shares of Foot Locker in the first quarter worth approximately $11,222,000. Institutional investors own 95.34% 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 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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