Foot Locker, Inc. (FL) Upgraded by Deutsche Bank AG to Buy

Jon Howard
November 19, 2017

Deutsche Bank AG raised Foot Locker from a hold rating to a buy rating and set a $45.00 target price for the company in a research note on Friday. Credit Suisse Group reissued a neutral rating and set a $52.00 price objective (down previously from $66.00) on shares of Foot Locker in a report on Tuesday, August 1st.

Shares of Foot Locker (NYSE:FL) traded up $8.97 on Friday, hitting $40.82. Bank of New York Mellon Corp now owns 3,591,593 shares of the athletic footwear retailer's stock worth $126,495,000 after purchasing an additional 870,899 shares during the period. The stock now has an average rating of Hold and an average price target of $57.67.

Foot Locker (FL) traded up $0.65 on Monday, reaching $31.85.

Net income for the company's first nine months of the year decreased to $333 million, or $2.55 per share on a GAAP basis, compared to net income of $475 million, or $3.50 per share, for the corresponding period in 2016.

The shoe store reported a 35 percent drop in profit to $102 million, or 81 cents per share. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.63 and a quick ratio of 2.88. In the latest earnings report the EPS was $4.33 with 124.00M shares now outstanding.

In terms of earnings per share, 22 analysts have a 1.32 EPS mean target for the quarter ending Jan-17, for the quarter ending Apr-18, 11 analysts have a 1.27 EPS mean target and for the quarter ending Apr-18 there are 22 estimates of 4.77 EPS. Net sales were little changed from year-ago levels at $1.87 billion, also topping the analyst mean by around $50 million. Foot Locker had a net margin of 7.49% and a return on equity of 21.52%.

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They expect $0.8 EPS, down 41.25% or $0.33 from last year's $1.13 per share. If you are reading this piece of content on another domain, it was copied illegally and republished in violation of worldwide trademark & copyright laws. Since then, sales of Nike footwear on Amazon have outpaced those in Foot Locker, according to UBS analysis.

The company spent $304 million to repurchase 8.69 million shares during the quarter and paid a quarterly dividend of $0.31 per share for $38 million. Investors of record on Friday, January 19th will be issued a $0.31 dividend. This represents a $1.24 dividend on an annualized basis and a yield of 3.04%. The ex-dividend date is Thursday, January 18th.

Foot Locker was not entirely alone when it comes to a better-than-expected quarter. Honkamp Krueger Financial Services Inc. lifted its stake in Foot Locker by 0.4% in the 2nd quarter. Vident Investment Advisory LLC now owns 69,782 shares of the athletic footwear retailer's stock valued at $2,457,000 after buying an additional 34,103 shares in the last quarter. This was down from $1.89 billion a year ago. Koch Industries Inc. purchased a new stake in Foot Locker in the second quarter valued at $720,000. Formidable Asset Management LLC now owns 12,446 shares of the athletic footwear retailer's stock worth $613,000 after purchasing an additional 336 shares in the last quarter.

A number of institutional investors have recently modified their holdings of the stock.

As with other sports retailers, Hibbett's stock has drifted lower this year amid aggressive promotions and the threat from Amazon, which could also develop its own private-label athletic apparel.

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