Is Foot Locker Inc. (NYSE: FL) Back In The Buying Zone?


The Vanguard Group, Inc. recently announced the acquisition of new stake in Foot Locker Inc. (NYSE:FL). The institutional investor has increased its shareholding in the Consumer Cyclical company by 0.81% to 9.89 million shares with purchase of 79435.0 shares. This fresh investment now brings its stake to 9.49% valued currently at $288.49 million. In addition, Boston Partners Global Investors,. raised its holdings by 7.37 million to 8.79 million shares. And Dimensional Fund Advisors LP has lifted its position by 19.05% or 0.63 million shares – to 3.94 million shares.

With over 1.98 million Foot Locker Inc. (FL) shares trading Tuesday and a closing price of $30.11 on the day, the dollar volume was approximately $59.64 million. The shares have shown a negative weekly performance of -0.36% and its price on 07/28/20 gained nearly 0.80%. Currently, there are 104.30M common shares owned by the public and among those 96.58M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 23 analysts who have offered their price forecasts for FL have a consensus price objective of $29.59. The analysts have set the share’s price value over the next 12 months at a high of $37.00 and a low of $17.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Foot Locker Inc. stock is 2.50 for the next 12 months. The average price target is -2.98% below its last price level and a downside to the estimated low will see the stock lose -77.12% over that period. But an upside of 18.62% will see the stock hit the forecast high price target while mean target price for the stock is $30.00.

Insiders at the company have transacted a total of 68 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 67 of these insider trades were purchases, accounting for 544,907 shares. Insider sales of the common stock occurred on 1 occasions, with total insider shares sold totaling 7,000 shares.

The top 3 mutual fund holders in Foot Locker Inc. are Oakmark Equity & Income Fund, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF. Oakmark Equity & Income Fund owns 3.52 million shares of the company’s stock, all valued at over $102.63 million. Vanguard Total Stock Market Index sold -0.11 million shares to see its total holdings shrink to 2.99 million shares valued at over $87.11 million and representing 2.87% of the shares outstanding. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.68% of the shares outstanding.

Shares of Foot Locker Inc. (NYSE: FL) opened at $29.92, up $0.05 from a prior closing price of $29.87. However, the script later closed the day at $30.11, up 0.80%. The company’s stock has a 5-day price change of -0.36% and 18.68% over the past three months. FL shares are trading -22.78% year to date (YTD), with the 12-month market performance down to -29.22% lower. It has a 12-month low price of $17.46 and touched a high of $47.86 over the same period. Currently, 1.98 million shares have been traded, compared to an average intraday trading volume of 2.67 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 3.82%, 2.77%, and -10.09% respectively.

Institutional ownership of Foot Locker Inc. (NYSE: FL) shares accounts for 91.80% of the company’s 104.30M shares outstanding. Mutual fund holders own 41.35%, while other institutional holders and individual stakeholders account for 51.05% and 3.40% respectively.

It has a market capitalization of $3.26B and a beta (3y monthly) value of 1.34. The stock’s trailing 12-month PE ratio is 15.46, while the earnings-per-share (ttm) stands at $1.95. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.54% over the week and 4.37% over the month.

Analysts forecast that Foot Locker Inc. (FL) will achieve an EPS of -$0.6 for the current quarter, $0.64 for the next quarter and $3.44 for 2022. The lowest estimate earnings-per-share for the quarter is -$0.92 while analysts give the company a high EPS estimate of -$0.24. Comparatively, EPS for the current quarter was $0.66 a year ago. Earnings per share for the fiscal year are expected to increase by 2.30%, and 387.66% over the next financial year. EPS should shrink at an annualized rate of -2.83% over the next five years, compared to 4.90% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 23 brokerage firm advisors rate Foot Locker Inc. (FL) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 14 of the 23 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the FL, a number of firms have released research notes about the stock. Susquehanna stated their Positive rating for the stock in a research note on July 10, 2020, with the firm’s price target at $25-$34. B. Riley FBR coverage for the Foot Locker Inc. (FL) stock in a research note released on June 22, 2020 offered a Neutral rating with a price target of $32. B. Riley FBR was of a view on May 27, 2020 that the stock is Buy, while Telsey Advisory Group gave the stock Market Perform rating on May 15, 2020, issuing a price target of $29- $26. Telsey Advisory Group on their part issued Market Perform rating on March 26, 2020.


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