Is Foot Locker Inc. (FL) Good For Your Portfolio?


Foot Locker Inc. (NYSE:FL) saw an upside of 4.52% to close Tuesday at $37.00 after adding $1.6 on the day. The 5-day average trading volume is 2,483,760 shares of the company’s common stock. It has gained $37.01 in the past week and touched a new high 3 times within the past 5 days. An average of 2,052,715 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,670,416.

FL’s 1-month performance is -4.93% or -$1.92 on its low of $32.76 reached on 12/20/22. The company’s shares have touched a 52-week low of $23.85 and high of $47.42, with the stock’s rally to the 52-week high happening on 01/26/22. YTD, FL has lost -15.20% or -$6.63 and has reached a new high 4 times. However, the current price is down -21.97% from the 52-week high price.

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Insider Transactions

FL stock investors last saw insider trading activity on Dec 02.Johnson Richard A (Director) most recently sold 47,000 shares at $39.87 per share on Dec 02. This transaction cost the insider $1,873,890. 10% Owner, Vesa Equity Investment S.a r.l, sold 1,316 shares at a price of $32.02 on Oct 21. Then, on Oct 20, 10% Owner Vesa Equity Investment S.a r.l sold 153,072 shares at a price of $32.41 per share. This transaction amounted to $4,960,880.

Valuation Metrics

FL stock has a beta of 1.24. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.39 while the price-to-book (PB) in the most recent quarter is 1.06.

Foot Locker Inc.’s quick ratio for the period ended July 30 was 0.40, with the current ratio over the same period at 1.50. As well, the company’s long term debt to equity for the quarter ending July 30 was 0.14, while the total debt to equity was 0.14.. In terms of profitability, the gross margin trailing 12 months is 32.70%. The firm’s gross profit as reported stood at $3.08 billion against revenue of $8.96 billion.

Earnings Surprise

For the quarterly period ending July 30 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -64.58% to $96.0 million, while revenue of $94.0 million was 2.08% off the previous quarter. Analysts expected FL to announce $0.79 per share in earnings in its latest quarter, but it posted $1.1, representing a 39.20% surprise. EBITDA for the quarter stood at more than $209.0 million. FL stock balance sheet for the quarter ending July 30 shows that total liabilities totaled 4.5 billion, with total debt at $3.29 billion. Shareholders hold equity totaling $93.32 million.

Let’s look briefly at Foot Locker Inc. (FL) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 27 December was 55.92% to suggest the stock is trending Neutral, with historical volatility in this time period at 65.18%.

The stock’s 5-day moving average is $35.20, reflecting a +9.40% or $3.18 change from its current price. FL is currently trading -4.27% above its 20-day SMA, +30.19% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +16.65% and SMA200 by+23.99%.

Stochastic %K and %D was 45.44% and 38.73% and the average true range (ATR) pointed at 1.57. The RSI (14) points at 54.22%, while the 14-day stochastic is at 61.85% with the period’s ATR at 1.57. The stock’s 9-day MACD Oscillator is pointing at 0.68 and -0.39 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Foot Locker Inc. (NYSE: FL), Morgan Stanley upgraded it to an Equal-weight rating. They previously had an Underweight rating on the stock.

What is FL’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $31.00 and a high of $47.00, with their median price target at $39.00. Looking at these predictions, the average price target given by analysts is for Foot Locker Inc. (FL) stock is $38.44.


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