What Are The Risk Factors For Foot Locker Inc. (FL)?


As of Friday close, Foot Locker Inc.’s (NYSE:FL) stock was down -$0.44, moving down -1.03 percent to $42.26. The average number of shares traded per day over the past five days has been 3,659,840 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.62 fall in that time frame. In the last twenty days, the average volume was 2,426,090, while in the previous 50 days, it was 2,212,292.

Since last month, FL stock retreated -5.29%. Shares of the company fell to $39.04 on 03/15/23, the lowest level in the past month. A 52-week high of $47.22 was reached on 02/03/23 after having rallying from a 52-week low of $23.85. Since the beginning of this year, FL’s stock price has risen by 11.83% or $4.47, and marked a new high 10 times. However, the stock has declined by -10.50% since its 52-week high.

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FL stock investors should be aware that Foot Locker Inc. (FL) stock had its last reported insider trading activity 45 days ago on Feb 01. Cipriano Giovanna, the SVP & Chief Accounting Officer of the company, disposed of 25,554 shares for $45.00 on Feb 01. It resulted in a $1,149,930 divestment by the insider. Maurer John A sold 2,000 shares at an average price of $45.07 on Feb 01. The insider now owns 21,221 shares following the transaction. On Jan 26, VP, Treasurer Maurer John A sold 3,500 shares at $42.01 apiece. The transaction was valued at $147,035.

Valuation Metrics

Right now, Foot Locker Inc. (FL) has a P/E ratio of about 9.62. The stock’s beta is 1.23. Besides these, the trailing price-to-sales (P/S) ratio of 0.46, the price-to-book (PB) ratio of 1.21.

The latest dividend of $0.40 per share was paid out, remained unchanged from last year’s $0.40. On Monday February 28 2022, a $0.10 dividend increase was announced.

Financial Health

In the three months ended October 30, Foot Locker Inc.’s quick ratio stood at 0.40, while its current ratio was 1.50, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending October 30 was 0.14, and the total debt-to-equity ratio was 0.14. On the profitability front, the trailing twelve-month gross margin is 32.70% percent. In the year ended October 30, operating margins totaled 7.50%. Based on annual data, FL earned $3.08 billion in gross profit and brought in $8.96 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 14.00%. Return on equity (ROE) for the past 12 months was 13.20%.

In Foot Locker Inc.’s quarter-end financial report for October 30, it reported total debt of $448.0 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. FL’s revenue fell -0.74% to $2.06 billion during the quarter, while net income inched up to $2.17 billion. While analysts expected Foot Locker Inc. to report $1.11 quarterly earnings, the actual figure was $1.27 per share, beating the consensus estimate by 14.40%. During the quarter, the company generated $209.0 million in EBITDA. The liabilities of Foot Locker Inc. were 4.5 billion at the end of its most recent quarter ended October 30, and its total debt was $3.2 billion. The value of shareholders’ equity is $93.32 million.

Technical Picture

This quick technical analysis looks at Foot Locker Inc.’s (FL) price momentum. With a historical volatility rate of 48.16%, the RSI 9-day stood at 46.77% on 17 March.

With respect to its five-day moving average, the current Foot Locker Inc. price is down by -1.45% percent or -$0.62. At present, FL shares trade -4.86% below its 20-day simple moving average and +33.06% percent above its 100-day simple moving average. However, the stock is currently trading approximately +9.97% above its SMA50 and +28.14% above its SMA200.

Stochastic coefficient K was 48.60% and Stochastic coefficient D was 34.62%, while ATR was 1.62. Given the Stochastic reading of 52.87% for the 14-day period, the RSI (14) reading has been calculated as 47.73%. As of today, the MACD Oscillator reading stands at -0.39, while the 14-day reading stands at -0.90.

With a median target price of $43.00, the current consensus forecast for the stock is $32.00 – $62.00. Based on these forecasts, analysts predict Foot Locker Inc. (FL) will achieve an average price target of $44.00.


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