Zacks Investment Research Upgrades Foot Locker (FL) to “Buy”

Zacks Investment Research upgraded shares of Foot Locker (NYSE:FL) from a hold rating to a buy rating in a research report report published on Wednesday. The firm currently has $61.00 price target on the athletic footwear retailer’s stock.

According to Zacks, “Shares of Foot Locker have surged and outpaced the industry in a 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 expectations. Although sales fell marginally, earnings score high on a year-over-year basis. However, higher SG&A expenses rate remains an overhang on margin.”

Several other equities research analysts have also recently weighed in on FL. Morgan Stanley initiated coverage on Foot Locker in a report on Wednesday, August 1st. They set an underweight rating and a $44.00 target price for the company. OTR Global upgraded Foot Locker to a positive rating in a report on Thursday, August 16th. Canaccord Genuity set a $66.00 target price on Foot Locker and gave the company a buy rating in a report on Friday, August 17th. Pivotal Research restated a buy rating and set a $64.00 target price on shares of Foot Locker in a report on Monday, August 20th. Finally, ValuEngine upgraded Foot Locker from a sell rating to a hold rating in a report on Monday, August 20th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and sixteen have issued a buy rating to the company’s stock. The stock presently has an average rating of Buy and a consensus target price of $59.30.

Shares of FL stock opened at $56.40 on Wednesday. The stock has a market cap of $6.48 billion, a P/E ratio of 13.72, a P/E/G ratio of 1.67 and a beta of 0.84. Foot Locker has a 1-year low of $38.17 and a 1-year high of $59.40. The company has a debt-to-equity ratio of 0.05, a current ratio of 3.42 and a quick ratio of 1.54.

Foot Locker (NYSE:FL) last issued its earnings results on Tuesday, November 20th. The athletic footwear retailer reported $0.95 earnings per share for the quarter, beating the consensus estimate of $0.92 by $0.03. The company had revenue of $1.86 billion during the quarter, compared to analysts’ expectations of $1.86 billion. Foot Locker had a return on equity of 21.01% and a net margin of 4.24%. Foot Locker’s quarterly revenue was down .5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.87 EPS. As a group, equities research analysts expect that Foot Locker will post 4.5 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 1st. Shareholders of record on Friday, January 18th will be issued a $0.345 dividend. This represents a $1.38 annualized dividend and a yield of 2.45%. The ex-dividend date is Thursday, January 17th. Foot Locker’s dividend payout ratio (DPR) is currently 33.58%.

In other Foot Locker news, Director Matthew M. Mckenna sold 7,000 shares of the stock in a transaction that occurred on Monday, November 19th. The stock was sold at an average price of $50.81, for a total value of $355,670.00. Following the completion of the sale, the director now owns 30,459 shares in the company, valued at approximately $1,547,621.79. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, VP John A. Maurer sold 5,000 shares of the stock in a transaction that occurred on Wednesday, November 21st. The stock was 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 owns 25,581 shares of the company’s stock, valued at approximately $1,355,793. The disclosure for this sale can be found here. Company insiders own 2.90% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. O Shaughnessy Asset Management LLC purchased a new stake in Foot Locker in the 3rd quarter worth approximately $124,000. Stratos Wealth Partners LTD. purchased a new stake in Foot Locker in the 3rd quarter worth approximately $146,000. Stephens Inc. AR bought a new position in shares of Foot Locker in the 2nd quarter worth approximately $203,000. Fiera Capital Corp bought a new position in shares of Foot Locker in the 2nd quarter worth approximately $208,000. Finally, Advisors Asset Management Inc. raised its position in shares of Foot Locker by 61.6% in the 2nd quarter. Advisors Asset Management Inc. now owns 4,176 shares of the athletic footwear retailer’s stock worth $220,000 after acquiring an additional 1,592 shares in the last quarter.

Foot Locker Company Profile

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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Analyst Recommendations for Foot Locker (NYSE:FL)

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