Zacks Investment Research upgraded shares of Foot Locker Inc. (NYSE:FL) from a hold rating to a buy rating in a research report released on Wednesday. Zacks Investment Research currently has $75.00 price target on the stock.
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 research analysts have also recently commented on FL. B. Riley upped their target price on Foot Locker from $75.00 to $80.00 and gave the company a buy rating in a research note on Wednesday, August 17th. Canaccord Genuity set a $75.00 target price on Foot Locker and gave the company a buy rating in a research note on Monday, August 15th. Bank of America Corp. reaffirmed a buy rating on shares of Foot Locker in a research note on Friday, June 10th. Deutsche Bank AG reaffirmed a buy rating on shares of Foot Locker in a research note on Wednesday, August 10th. Finally, Jefferies Group reaffirmed a buy rating and set a $73.00 target price on shares of Foot Locker in a research note on Wednesday, June 29th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, fourteen have issued a buy rating and two have assigned a strong buy rating to the stock. The company has an average rating of Buy and a consensus price target of $72.87.
Foot Locker (NYSE:FL) opened at 68.87 on Wednesday. The company’s 50-day moving average price is $66.78 and its 200-day moving average price is $60.66. Foot Locker has a 52-week low of $50.90 and a 52-week high of $71.04. The company has a market cap of $9.18 billion, a price-to-earnings ratio of 17.13 and a beta of 0.61.
Foot Locker (NYSE:FL) last issued its quarterly earnings data on Friday, August 19th. The company reported $0.94 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.90 by $0.04. Foot Locker had a return on equity of 23.99% and a net margin of 7.35%. The company had revenue of $1.78 billion for the quarter, compared to analysts’ expectations of $1.76 billion. During the same period in the previous year, the firm posted $0.84 earnings per share. The firm’s revenue for the quarter was up 5.0% on a year-over-year basis. Equities research analysts expect that Foot Locker will post $4.76 EPS for the current fiscal year.
The business 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. This represents a $1.10 annualized dividend and a yield of 1.60%. The ex-dividend date of this dividend is Wednesday, October 12th. Foot Locker’s dividend payout ratio is currently 27.23%.
In other Foot Locker news, CEO Lewis Phillip Kimble sold 43,479 shares of the stock in a transaction dated Wednesday, September 7th. The stock was sold at an average price of $65.40, for a total transaction of $2,843,526.60. Following the sale, the chief executive officer now directly owns 26,131 shares of the company’s stock, valued at approximately $1,708,967.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Lauren B. Peters sold 20,000 shares of the stock in a transaction dated Monday, August 22nd. The stock was sold at an average price of $68.00, for a total value of $1,360,000.00. Following the sale, the chief financial officer now directly owns 139,597 shares in the company, valued at $9,492,596. The disclosure for this sale can be found here. Company insiders own 2.92% of the company’s stock.
A number of large investors have recently made changes to their positions in the company. Global X Management Co. LLC boosted its stake in Foot Locker by 310.6% in the second quarter. Global X Management Co. LLC now owns 1,823 shares of the company’s stock worth $100,000 after buying an additional 1,379 shares during the period. Euclid Advisors LLC acquired a new stake in Foot Locker during the second quarter worth approximately $127,000. Huntington National Bank boosted its stake in Foot Locker by 187.3% in the second quarter. Huntington National Bank now owns 2,396 shares of the company’s stock worth $131,000 after buying an additional 1,562 shares during the period. Pacer Advisors Inc. boosted its stake in Foot Locker by 10.2% in the second quarter. Pacer Advisors Inc. now owns 2,574 shares of the company’s stock worth $141,000 after buying an additional 239 shares during the period. Finally, FUKOKU MUTUAL LIFE INSURANCE Co boosted its stake in Foot Locker by 27.3% in the second quarter. FUKOKU MUTUAL LIFE INSURANCE Co now owns 2,800 shares of the company’s stock worth $154,000 after buying an additional 600 shares during the period. 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.
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