Zacks Investment Research lowered shares of Foot Locker Inc. (NYSE:FL) from a buy rating to a hold rating in a report published on Friday morning.
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.”
A number of other equities research analysts have also recently issued reports on FL. Bank of America Corp. restated a buy rating on shares of Foot Locker in a report on Friday, June 10th. Robert W. Baird restated an outperform rating and set a $78.00 price objective on shares of Foot Locker in a report on Tuesday, June 14th. Piper Jaffray Cos. restated a buy rating on shares of Foot Locker in a report on Wednesday, June 15th. Brean Capital restated a buy rating on shares of Foot Locker in a report on Thursday, June 16th. Finally, Jefferies Group restated a buy rating and set a $73.00 price objective on shares of Foot Locker in a report on Wednesday, June 29th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, fourteen have issued a buy rating and two have assigned a strong buy rating to the company. The company has a consensus rating of Buy and an average price target of $72.87.
Foot Locker (NYSE:FL) opened at 69.23 on Friday. The firm has a 50-day moving average price of $66.81 and a 200 day moving average price of $60.78. The firm has a market cap of $9.22 billion, a PE ratio of 17.22 and a beta of 0.61. Foot Locker has a 12-month low of $50.90 and a 12-month high of $71.04.
Foot Locker (NYSE:FL) last posted its quarterly earnings results on Friday, August 19th. The company reported $0.94 EPS for the quarter, topping analysts’ consensus estimates of $0.90 by $0.04. Foot Locker had a return on equity of 23.99% and a net margin of 7.35%. The business earned $1.78 billion during the quarter, compared to analysts’ expectations of $1.76 billion. During the same quarter last year, the company posted $0.84 earnings per share. Foot Locker’s quarterly revenue was up 5.0% on a year-over-year basis. Equities research analysts forecast that Foot Locker will post $4.76 EPS for the current year.
The company also recently declared a quarterly dividend, which will be paid on Friday, October 28th. Shareholders of record on Friday, October 14th will be given a dividend of $0.275 per share. The ex-dividend date is Wednesday, October 12th. This represents a $1.10 dividend on an annualized basis and a yield of 1.59%. Foot Locker’s dividend payout ratio (DPR) is currently 27.23%.
In other news, CFO Lauren B. Peters sold 20,000 shares of the stock in a transaction dated Monday, August 22nd. The shares were sold at an average price of $68.00, for a total transaction of $1,360,000.00. Following the transaction, the chief financial officer now owns 139,597 shares of the company’s stock, valued at approximately $9,492,596. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Richard A. Johnson sold 50,000 shares of the stock in a transaction dated Friday, August 19th. The stock was sold at an average price of $68.04, for a total transaction of $3,402,000.00. The disclosure for this sale can be found here. Company insiders own 2.90% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in the company. Aperio Group LLC boosted its position in Foot Locker by 46.6% in the first quarter. Aperio Group LLC now owns 40,714 shares of the company’s stock worth $2,626,000 after buying an additional 12,941 shares during the period. Ngam Advisors L.P. boosted its position in Foot Locker by 114.5% in the first quarter. Ngam Advisors L.P. now owns 58,471 shares of the company’s stock worth $3,771,000 after buying an additional 31,216 shares during the period. BlackRock Inc. boosted its position in Foot Locker by 10.3% in the first quarter. BlackRock Inc. now owns 174,921 shares of the company’s stock worth $11,282,000 after buying an additional 16,263 shares during the period. BlackRock Group LTD boosted its position in Foot Locker by 2.6% in the first quarter. BlackRock Group LTD now owns 859,192 shares of the company’s stock worth $55,418,000 after buying an additional 21,483 shares during the period. Finally, Palisade Capital Management LLC NJ bought a new position in Foot Locker during the first quarter worth about $3,549,000. 98.06% of the stock is currently owned by institutional investors.
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.