Zacks Investment Research Downgrades Foot Locker, Inc. (FL) to Sell
Foot Locker, Inc. (NYSE:FL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.
According to Zacks, “Fashion obsolescence, foreign currency headwinds, a competitive retail landscape, and cautious consumer spending continue to pose concern for Foot Locker. Moreover, we noticed that the Zacks Consensus Estimate has witnessed a downtrend ahead of the company’s fourth-quarter fiscal 2016 earnings release in the past 30 days. Although the stock has outpaced the industry in the past three months, it is likely to reverse the trend. Nevertheless, we believe 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. Management had earlier 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.”
A number of other research analysts have also recently commented on the company. Guggenheim upgraded Foot Locker from a “neutral” rating to a “buy” rating and set a $85.00 price objective on the stock in a report on Thursday, February 2nd. Wedbush reiterated an “outperform” rating and issued a $80.00 price objective on shares of Foot Locker in a report on Tuesday, January 24th. Canaccord Genuity reiterated a “buy” rating and issued a $83.00 price objective on shares of Foot Locker in a report on Monday, January 23rd. Robert W. Baird reiterated an “outperform” rating and issued a $79.00 price objective on shares of Foot Locker in a report on Wednesday, December 28th. Finally, Vetr upgraded Foot Locker from a “hold” rating to a “buy” rating and set a $77.33 price objective on the stock in a report on Thursday, December 22nd. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating, sixteen have issued a buy rating and one has issued a strong buy rating to the company. Foot Locker presently has a consensus rating of “Buy” and an average price target of $76.19.
Foot Locker (NYSE:FL) opened at 70.50 on Wednesday. The stock has a market capitalization of $9.33 billion, a P/E ratio of 15.22 and a beta of 0.57. The stock has a 50 day moving average price of $69.93 and a 200-day moving average price of $68.70. Foot Locker has a one year low of $50.90 and a one year high of $79.43.
Foot Locker (NYSE:FL) last released its quarterly earnings data on Friday, November 18th. The company reported $1.13 EPS for the quarter, beating analysts’ consensus estimates of $1.10 by $0.03. Foot Locker had a return on equity of 24.22% and a net margin of 8.26%. The firm had revenue of $1.89 billion for the quarter. During the same quarter in the prior year, the company posted $1.00 earnings per share. The company’s revenue was up 5.1% on a year-over-year basis. Analysts anticipate that Foot Locker will post $4.78 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 28th. Stockholders of record on Thursday, April 13th will be paid a $0.31 dividend. This is a boost from Foot Locker’s previous quarterly dividend of $0.28. This represents a $1.24 annualized dividend and a dividend yield of 1.76%. The ex-dividend date is Tuesday, April 11th. Foot Locker’s dividend payout ratio (DPR) is presently 23.71%.
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In other news, Director Jarobin Gilbert, Jr. sold 1,000 shares of the stock in a transaction on Tuesday, December 6th. The stock was sold at an average price of $76.23, for a total value of $76,230.00. Following the sale, the director now directly owns 11,876 shares in the company, valued at $905,307.48. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Matthew M. Mckenna sold 6,659 shares of the stock in a transaction on Tuesday, November 29th. The shares were sold at an average price of $72.39, for a total value of $482,045.01. Following the completion of the sale, the director now owns 48,189 shares in the company, valued at $3,488,401.71. The disclosure for this sale can be found here. Over the last quarter, insiders sold 17,659 shares of company stock worth $1,311,475. Insiders own 2.92% of the company’s stock.
Several hedge funds have recently made changes to their positions in FL. Bridgeway Capital Management Inc. boosted its stake in shares of Foot Locker by 6.0% in the second quarter. Bridgeway Capital Management Inc. now owns 494,550 shares of the company’s stock valued at $27,131,000 after buying an additional 28,000 shares during the last quarter. Mitsubishi UFJ Trust & Banking Corp boosted its stake in shares of Foot Locker by 19.1% in the third quarter. Mitsubishi UFJ Trust & Banking Corp now owns 380,933 shares of the company’s stock valued at $25,797,000 after buying an additional 61,181 shares during the last quarter. Buckingham Capital Management Inc. boosted its stake in shares of Foot Locker by 0.6% in the first quarter. Buckingham Capital Management Inc. now owns 33,130 shares of the company’s stock valued at $2,137,000 after buying an additional 196 shares during the last quarter. Rhumbline Advisers boosted its stake in shares of Foot Locker by 19.6% in the third quarter. Rhumbline Advisers now owns 244,698 shares of the company’s stock valued at $16,571,000 after buying an additional 40,151 shares during the last quarter. Finally, Todd Asset Management LLC boosted its stake in shares of Foot Locker by 46.1% in the third quarter. Todd Asset Management LLC now owns 467,014 shares of the company’s stock valued at $31,626,000 after buying an additional 147,267 shares during the last quarter. Institutional investors and hedge funds own 95.30% 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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