Zacks Investment Research Downgrades Foot Locker (FL) to Hold

Foot Locker (NYSE:FL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Friday.

According to Zacks, “Shares of Foot Locker got a major push, when the company reported impressive first-quarter fiscal 2018 results, wherein both the top and bottom lines not only beat expectations but also grew year over year. Earnings per share improved after declining in the trailing four quarters. Notably, the stock has rallied and outpaced the industry in the past three months. 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. However, higher SG&A expenses and challenging European business due to promotional environment are concerns.”

A number of other brokerages have also weighed in on FL. ValuEngine lowered shares of Foot Locker from a “hold” rating to a “sell” rating in a report on Saturday, July 28th. Buckingham Research reaffirmed a “buy” rating and issued a $54.00 target price on shares of Foot Locker in a research note on Wednesday, April 18th. UBS Group initiated coverage on shares of Foot Locker in a research note on Thursday, June 21st. They issued a “neutral” rating and a $59.00 target price on the stock. Wedbush lifted their target price on shares of Foot Locker from $59.00 to $61.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 29th. Finally, OTR Global downgraded shares of Foot Locker to a “positive” rating in a research note on Friday, May 11th. Four research analysts have rated the stock with a sell rating, ten have issued a hold rating and fifteen have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus target price of $56.08.

Shares of FL traded up $0.36 during mid-day trading on Friday, reaching $47.97. The company’s stock had a trading volume of 2,617,494 shares, compared to its average volume of 2,318,507. The firm has a market cap of $5.57 billion, a price-to-earnings ratio of 11.34, a PEG ratio of 1.60 and a beta of 0.91. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.04 and a current ratio of 3.89. Foot Locker has a 52 week low of $28.42 and a 52 week high of $59.40.

Foot Locker (NYSE:FL) last announced its quarterly earnings data on Friday, May 25th. The athletic footwear retailer reported $1.45 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.25 by $0.20. The firm had revenue of $2.03 billion during the quarter, compared to analyst estimates of $1.96 billion. Foot Locker had a net margin of 3.45% and a return on equity of 19.60%. The business’s quarterly revenue was up 1.2% on a year-over-year basis. During the same period in the previous year, the business posted $1.36 EPS. equities research analysts predict that Foot Locker will post 4.52 earnings per share for the current year.

In other Foot Locker news, CFO Lauren B. Peters sold 25,000 shares of the business’s stock in a transaction on Friday, May 25th. The shares were sold at an average price of $51.85, for a total transaction of $1,296,250.00. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 2.90% of the stock is currently owned by insiders.

Institutional investors have recently modified their holdings of the business. Signaturefd LLC purchased a new position in Foot Locker during the 1st quarter valued at $103,000. Synovus Financial Corp purchased a new position in Foot Locker during the 1st quarter valued at $158,000. Rampart Investment Management Company LLC increased its position in Foot Locker by 119.0% during the 1st quarter. Rampart Investment Management Company LLC now owns 3,626 shares of the athletic footwear retailer’s stock valued at $165,000 after purchasing an additional 1,970 shares during the period. Trilogy Capital Inc. purchased a new position in Foot Locker during the 1st quarter valued at $172,000. Finally, Stephens Inc. AR purchased a new position in Foot Locker during the 2nd quarter valued at $203,000. 92.45% of the stock is currently owned by institutional investors and hedge funds.

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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