Foot Locker (FL) Cut to “Hold” at Zacks Investment Research

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Zacks Investment Research lowered shares of Foot Locker (NYSE:FL) from a buy rating to a hold rating in a report issued on Tuesday.

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.”

Other analysts have also recently issued reports about the company. TheStreet raised Foot Locker from a c rating to a b- rating in a report on Tuesday, November 20th. Pivotal Research reissued a buy rating and set a $64.00 price objective on shares of Foot Locker in a report on Monday, August 20th. Canaccord Genuity set a $66.00 price objective on Foot Locker and gave the stock a buy rating in a report on Friday, August 17th. Jefferies Financial Group set a $60.00 price objective on Foot Locker and gave the stock a buy rating in a report on Thursday, September 27th. Finally, Wells Fargo & Co set a $64.00 price objective on Foot Locker and gave the stock a buy rating in a report on Wednesday, November 21st. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and sixteen have assigned a buy rating to the stock. The stock presently has a consensus rating of Buy and an average target price of $59.09.

Shares of NYSE:FL opened at $53.05 on Tuesday. The stock has a market cap of $6.26 billion, a price-to-earnings ratio of 12.91, a PEG ratio of 1.61 and a beta of 0.85. 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 announced its quarterly earnings data on Tuesday, November 20th. The athletic footwear retailer reported $0.95 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.92 by $0.03. The firm 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%. The company’s quarterly revenue was down .5% compared to the same quarter last year. During the same period in the previous year, the business posted $0.87 EPS. As a group, sell-side analysts expect that Foot Locker will post 4.5 EPS for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, February 1st. Stockholders of record on Friday, January 18th will be paid a $0.345 dividend. The ex-dividend date is Thursday, January 17th. This represents a $1.38 dividend on an annualized basis and a dividend yield of 2.60%. Foot Locker’s dividend payout ratio (DPR) is presently 33.58%.

In other news, VP John A. Maurer sold 5,000 shares of the company’s stock in a transaction dated 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 directly owns 25,581 shares of the company’s stock, valued at approximately $1,355,793. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Matthew M. Mckenna sold 7,000 shares of the company’s stock in a transaction dated Monday, November 19th. The shares were 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 directly owns 30,459 shares of the company’s stock, valued at $1,547,621.79. The disclosure for this sale can be found here. Corporate insiders own 2.90% of the company’s stock.

Several hedge funds have recently made changes to their positions in the company. O Shaughnessy Asset Management LLC acquired a new position in shares of Foot Locker in the 3rd quarter valued at approximately $124,000. Stratos Wealth Partners LTD. acquired a new position in shares of Foot Locker in the 3rd quarter valued at approximately $146,000. Stephens Inc. AR acquired a new position in shares of Foot Locker in the 2nd quarter valued at approximately $203,000. Fiera Capital Corp acquired a new position in shares of Foot Locker in the 2nd quarter valued at approximately $208,000. Finally, Advisors Asset Management Inc. grew 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 valued at $220,000 after purchasing an additional 1,592 shares during the period. 99.96% of the stock is owned by institutional investors.

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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