Holdings of Foot Locker Inc. (FL) are aligned with the stars

Foot Locker Inc. (NYSE: FL) stock fell -0.63% on Friday to $28.42 against a previous-day closing price of $28.60. With 1.38 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.76 million shares. During the session, the Footwear & Accessories company that operates in wider Consumer Cyclical sector, reached to the highest price of $28.77 whereas the lowest price it dropped to was $28.20. The 52-week range on FL shows that it touched its highest point at $61.50 and its lowest point at $23.85 during that stretch. It currently has a 1-year price target of $30.74. With its current market cap of 2.58 billion, FL has annualized dividend of $1.60 while the current yield stands at 5.63%. Beta for the stock currently stands at 1.34.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of FL was up-trending over the past week, with a rise of 1.94%, but this was up by 15.86% over a month. Three-month performance dropped to -7.58% while six-month performance fell -34.26%. The stock lost -46.83% in the past year, while it has lost -34.86% so far this year. A look at the trailing 12-month EPS for FL yields 7.99 with Next year EPS estimates of 4.18. For the next quarter, that number is 0.84. This implies an EPS growth rate of 179.90% for this year and -6.23% for next year. EPS is expected to grow by 35.86% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.80%.

Float and Shares Shorts:

At present, 96.10 million FL shares are outstanding with a float of 92.95 million shares on hand for trading. On Jul 14, 2022, short shares totaled 12.37 million, which was 13.09% higher than short shares on Jun 14, 2022. In addition to Mr. Richard A. Johnson as the firm’s Pres, Chairman & CEO, Mr. Andrew E. Page serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 92.86% of FL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.84% of FL, in contrast to 32.07% held by mutual funds. Shares owned by individuals account for 17.87%. As the largest shareholder in FL with 10.73% of the stake, The Vanguard Group, Inc. holds 10,138,233 shares worth 10,138,233. A second-largest stockholder of FL, Fidelity Management & Research Co, holds 9,729,357 shares, controlling over 10.29% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in FL, holding 7,073,925 shares or 7.49% stake. With a 6.08% stake in FL, the Fidelity Low Priced Stock Fund is the largest stakeholder. A total of 5,750,017 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.99% of FL stock, is the second-largest Mutual Fund holder. It holds 2,828,097 shares valued at 71.41 million. Vanguard Small Cap Index Fund holds 2.57% of the stake in FL, owning 2,426,131 shares worth 61.26 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Apr 29, 2022, FL reported revenue of $2.17B and operating income of $223.00M. Over the past year, revenue came in at $8.98B while operating income stood at $795.00M. It generated $133.00M net income for the quarter, which came to $824.00M over the last twelve months. The EBITDA in the recently reported quarter was $256.00M and diluted EPS was $1.37. EBITDA for the full year was $1.55B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FL since 22 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 5 suggest SELL ratings. Of the remaining analysts, 14 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With FL analysts setting a high price target of $50.00 and a low target of $20.00, the average target price over the next 12 months is $30.63. Based on these targets, FL could surge 75.93% to reach the target high and fall by -29.63% to reach the target low. Reaching the average price target will result in a growth of 7.78% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. FL will report FY 2023 earnings on 02/24/2023. Analysts have provided yearly estimates in a range of $4.65 being high and $4.08 being low. For FL, this leads to a yearly average estimate of $4.46. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Foot Locker Inc. surprised analysts by $0.06 when it reported $1.60 EPS against a consensus estimate of $1.54. The surprise factor in the prior quarter was $0.23. Based on analyst estimates, the high estimate for the next quarter is $1.10 and the low estimate is $0.36. The average estimate for the next quarter is thus $0.85.

Summary of Insider Activity:

Insiders traded FL stock several times over the past three months with 20 Buys and 1 Sells. In these transactions, 54,834 shares were bought while 2,100 shares were sold. The number of buy transactions has increased to 73 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 622,838 while 88,103 shares were sold.

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