Foot Locker (NYSE:FL) Stock Price Down 5.9% Following Weak Earnings

Foot Locker, Inc. (NYSE:FL)’s share price dropped 5.9% on Thursday following a dissappointing earnings announcement. The stock traded as low as $25.69 and last traded at $24.91. Approximately 1,836,690 shares traded hands during mid-day trading, a decline of 60% from the average daily volume of 4,626,766 shares. The stock had previously closed at $26.47.

The athletic footwear retailer reported ($0.27) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.32). The company had revenue of $1.86 billion for the quarter, compared to analyst estimates of $1.87 billion. Foot Locker had a positive return on equity of 2.92% and a negative net margin of 4.90%.Foot Locker’s revenue for the quarter was down 2.3% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.05) earnings per share.

Analyst Upgrades and Downgrades

Several analysts have commented on FL shares. Morgan Stanley dropped their target price on shares of Foot Locker from $16.00 to $14.00 and set an “underweight” rating on the stock in a report on Tuesday, May 6th. Telsey Advisory Group reaffirmed a “market perform” rating and issued a $24.00 price objective on shares of Foot Locker in a research report on Wednesday. Needham & Company LLC reiterated a “hold” rating on shares of Foot Locker in a report on Wednesday. JPMorgan Chase & Co. upgraded Foot Locker from an “underweight” rating to a “neutral” rating and boosted their price target for the company from $16.00 to $24.00 in a report on Thursday, May 15th. Finally, Barclays downgraded Foot Locker from an “overweight” rating to an “equal weight” rating in a report on Thursday, May 29th. Two equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $21.33.

Insiders Place Their Bets

In other news, CAO Giovanna Cipriano sold 22,383 shares of the business’s stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $24.90, for a total transaction of $557,336.70. Following the transaction, the chief accounting officer directly owned 93,895 shares in the company, valued at $2,337,985.50. The trade was a 19.25% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 0.89% of the company’s stock.

Hedge Funds Weigh In On Foot Locker

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC boosted its stake in Foot Locker by 250.6% in the 1st quarter. GAMMA Investing LLC now owns 2,468 shares of the athletic footwear retailer’s stock valued at $35,000 after purchasing an additional 1,764 shares during the period. AlphaQuest LLC acquired a new stake in shares of Foot Locker during the first quarter worth $59,000. Signaturefd LLC boosted its position in shares of Foot Locker by 27.2% in the first quarter. Signaturefd LLC now owns 4,579 shares of the athletic footwear retailer’s stock valued at $65,000 after acquiring an additional 980 shares during the period. Northwestern Mutual Wealth Management Co. grew its stake in shares of Foot Locker by 100,166.7% in the first quarter. Northwestern Mutual Wealth Management Co. now owns 6,016 shares of the athletic footwear retailer’s stock valued at $85,000 after acquiring an additional 6,010 shares in the last quarter. Finally, FORA Capital LLC bought a new position in Foot Locker during the first quarter worth about $154,000.

Foot Locker Trading Down 5.2%

The company has a debt-to-equity ratio of 0.17, a current ratio of 1.59 and a quick ratio of 0.49. The firm has a market capitalization of $2.39 billion, a P/E ratio of -6.22, a price-to-earnings-growth ratio of 2.21 and a beta of 1.75. The business’s 50-day moving average is $25.16 and its 200 day moving average is $20.03.

About Foot Locker

Foot Locker, Inc, through its subsidiaries, operates as a footwear and apparel retailer in North America, Europe, Australia, New Zealand, Asia, and the Middle East. Its brand portfolio includes Foot Locker, a brand comprising sneakers and apparel; Kids Foot Locker, which offers athletic footwear, apparel, and accessories for children; and Champs Sports that operates as a mall-based specialty athletic footwear and apparel retailer.