Zacks Investment Research lowered shares of Foot Locker (NYSE:FL) from a buy rating to a hold rating in a report published on Monday morning.
According to Zacks, “Shares of Foot Locker came under pressure, in spite of reporting positive earnings surprise for the second straight quarter during fourth-quarter fiscal 2017. This was due to lower-than-expected top-line results and a muted outlook for the first quarter with comparable sales and margins expected to remain soft. Nevertheless, the company is trying to improve performance through operational and financial initiatives, which is likely to provide cushion to the stock. The company now focuses 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. Apart from these, the company 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 formats opportunities and executing shop-in-shop spaces in collaboration with vendors.”
Other equities research analysts also recently issued research reports about the stock. Jefferies Group set a $61.00 price objective on shares of Foot Locker and gave the stock a buy rating in a research note on Friday, November 17th. Deutsche Bank upgraded shares of Foot Locker from a hold rating to a buy rating and raised their price objective for the stock from $38.00 to $45.00 in a research note on Friday, November 17th. Citigroup raised their price objective on shares of Foot Locker from $40.00 to $47.00 and gave the stock a buy rating in a research note on Monday, November 20th. ValuEngine upgraded shares of Foot Locker from a hold rating to a buy rating in a research note on Friday, December 1st. Finally, Canaccord Genuity raised Foot Locker from a hold rating to a buy rating and raised their target price for the stock from $42.00 to $64.00 in a research report on Friday, December 15th. Two equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and sixteen have assigned a buy rating to the company’s stock. Foot Locker currently has a consensus rating of Hold and a consensus target price of $54.23.
Foot Locker (NYSE:FL) last announced its quarterly earnings data on Friday, March 2nd. The athletic footwear retailer reported $1.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.25 by $0.01. The business had revenue of $2.21 billion for the quarter, compared to the consensus estimate of $2.23 billion. Foot Locker had a net margin of 3.65% and a return on equity of 19.32%. Foot Locker’s quarterly revenue was up 4.6% on a year-over-year basis. During the same quarter last year, the company posted $1.37 earnings per share. equities research analysts forecast that Foot Locker will post 4.4 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 4th. Shareholders of record on Friday, April 20th will be issued a dividend of $0.345 per share. The ex-dividend date of this dividend is Thursday, April 19th. This is a boost from Foot Locker’s previous quarterly dividend of $0.31. This represents a $1.38 dividend on an annualized basis and a dividend yield of 3.19%. Foot Locker’s dividend payout ratio (DPR) is presently 57.41%.
In other Foot Locker news, Director Matthew M. Mckenna sold 10,899 shares of Foot Locker stock in a transaction on Tuesday, January 9th. The stock was sold at an average price of $45.82, for a total transaction of $499,392.18. Following the completion of the transaction, the director now directly owns 35,000 shares of the company’s stock, valued at $1,603,700. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Richard A. Johnson sold 25,000 shares of Foot Locker stock in a transaction on Friday, January 19th. The shares were sold at an average price of $50.05, for a total value of $1,251,250.00. The disclosure for this sale can be found here. Over the last three months, insiders have sold 56,899 shares of company stock valued at $2,801,692. Company insiders own 1.73% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of FL. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Foot Locker by 7,025.7% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,132,990 shares of the athletic footwear retailer’s stock valued at $53,115,000 after acquiring an additional 1,117,090 shares during the period. Amundi Pioneer Asset Management Inc. bought a new position in shares of Foot Locker during the fourth quarter valued at $46,663,000. Bank of New York Mellon Corp lifted its holdings in shares of Foot Locker by 32.0% during the third quarter. Bank of New York Mellon Corp now owns 3,591,593 shares of the athletic footwear retailer’s stock valued at $126,495,000 after acquiring an additional 870,899 shares during the period. Bank of Montreal Can lifted its holdings in shares of Foot Locker by 367.4% during the fourth quarter. Bank of Montreal Can now owns 704,932 shares of the athletic footwear retailer’s stock valued at $33,049,000 after acquiring an additional 554,114 shares during the period. Finally, Two Sigma Advisers LP lifted its holdings in shares of Foot Locker by 43.0% during the fourth quarter. Two Sigma Advisers LP now owns 1,767,441 shares of the athletic footwear retailer’s stock valued at $82,858,000 after acquiring an additional 531,710 shares during the period. 96.49% of the stock is owned by institutional investors.
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Foot Locker Company Profile
Foot Locker, Inc is a retailer of shoes and apparel. The Company operates through two segments: Athletic Stores and Direct-to-Customers. The Company is an athletic footwear and apparel retailer, which include businesses, such as include Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep and SIX:02.
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