Zacks Investment Research upgraded shares of Foot Locker (NYSE:FL) from a hold rating to a buy rating in a research report released on Wednesday morning. The firm currently has $63.00 price target 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.”
FL has been the topic of a number of other reports. Piper Jaffray Companies set a $51.00 price objective on Foot Locker and gave the company a hold rating in a report on Wednesday, November 21st. B. Riley set a $51.00 price objective on Foot Locker and gave the company a neutral rating in a report on Wednesday, November 21st. Canaccord Genuity set a $64.00 price objective on Foot Locker and gave the company a buy rating in a report on Wednesday, November 21st. Wells Fargo & Co decreased their price objective on Foot Locker from $57.00 to $50.00 and set a hold rating on the stock in a report on Monday, August 27th. Finally, Jefferies Financial Group set a $60.00 price objective on Foot Locker and gave the company a buy rating in a report on Thursday, September 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. The company presently has a consensus rating of Buy and a consensus price target of $59.09.
Shares of Foot Locker stock opened at $53.86 on Wednesday. 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 $6.31 billion, a PE ratio of 13.10, a P/E/G ratio of 1.63 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 disclosed 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 annualized dividend and a yield of 2.56%. 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, Director Matthew M. Mckenna sold 7,000 shares of the firm’s stock in a transaction dated Monday, November 19th. The stock was sold at an average price of $50.81, for a total value of $355,670.00. Following the sale, the director now directly owns 30,459 shares of the company’s stock, valued at $1,547,621.79. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP John A. Maurer sold 5,000 shares of the firm’s stock in a transaction dated Wednesday, November 21st. The shares were sold at an average price of $53.00, for a total value of $265,000.00. Following the completion of the sale, the vice president now directly owns 25,581 shares in the company, valued at $1,355,793. The disclosure for this sale can be found here. Company insiders own 2.90% of the company’s stock.
A number of institutional investors have recently bought and sold shares of FL. Commonwealth Equity Services LLC raised its position in Foot Locker by 27.2% in the second quarter. Commonwealth Equity Services LLC now owns 19,556 shares of the athletic footwear retailer’s stock valued at $1,030,000 after purchasing an additional 4,184 shares during the last quarter. Sumitomo Mitsui Trust Holdings Inc. raised its position in Foot Locker by 21.2% in the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 10,932 shares of the athletic footwear retailer’s stock valued at $576,000 after purchasing an additional 1,912 shares during the last quarter. Fiera Capital Corp bought a new position in Foot Locker in the second quarter valued at about $208,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS bought a new position in Foot Locker in the second quarter valued at about $651,000. Finally, Sei Investments Co. raised its position in Foot Locker by 163.8% in the second quarter. Sei Investments Co. now owns 94,089 shares of the athletic footwear retailer’s stock valued at $4,954,000 after purchasing an additional 58,416 shares during the last quarter. Hedge funds and other institutional investors 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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