On February 7, 2023, BTIG initiated coverage of Foot Locker with a Buy recommendation.

Analyst Price Forecast Suggests 14.31% Downside

As of February 7, 2023, the average one-year price target for Foot Locker is $39.08. The forecasts range from a low of $31.31 to a high of $49.35. The average price target represents a decrease of 14.31% from its latest reported closing price of $45.61.

The projected annual revenue for Foot Locker is $8,810MM, an increase of 0.64%. The projected annual EPS is $4.61, an increase of 3.74%.

Foot Locker Declares $0.40 Dividend

Foot Locker said on November 14, 2022 that its board of directors declared a regular
quarterly dividend of $0.40 per share ($1.60 annualized). Shareholders of record as of January 12, 2023
received the payment on January 27, 2023. Previously, the company paid $0.40 per share.

At the current share price of $45.61 / share, the stock’s dividend yield is 3.51%.

Looking back five years and taking a sample every week, the average dividend yield has been
3.35%, the lowest has been 1.19%, and the highest has been 8.78%. The standard deviation of yields is 1.52 (n=236).

The current dividend yield is 0.11 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.35. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest
in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.05%, demonstrating that it has increased its dividend over time.

What are large shareholders doing?

Vesa Equity Investment S.a r.l. holds 12,350,716 shares representing 13.23% ownership of the company. In its prior filing, the firm reported owning 12,750,317 shares, representing a decrease of 3.24%.

FLPSX – Fidelity Low-Priced Stock Fund holds 6,500,039 shares representing 6.97% ownership of the company. In its prior filing, the firm reported owning 6,300,066 shares, representing an increase of 3.08%. The firm increased its portfolio allocation in FL by 20.37% over the last quarter.

Lsv Asset Management holds 4,492,965 shares representing 4.81% ownership of the company. In its prior filing, the firm reported owning 4,422,265 shares, representing an increase of 1.57%. The firm increased its portfolio allocation in FL by 36.10% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 2,789,654 shares representing 2.99% ownership of the company. In its prior filing, the firm reported owning 2,827,857 shares, representing a decrease of 1.37%. The firm increased its portfolio allocation in FL by 26.78% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 2,399,700 shares representing 2.57% ownership of the company. In its prior filing, the firm reported owning 2,426,428 shares, representing
a decrease of 1.11%. The firm increased its portfolio allocation in FL by 27.15% over the last quarter.

Fund Sentiment

There are 708 funds or institutions reporting positions in Foot Locker. This is a decrease of 74 owner(s) or 9.46%. Average portfolio weight of all funds dedicated to US:FL is 0.1472%, an increase of 24.5853%.

Total shares owned by institutions decreased in the last three months by 3.40% to 98,160K shares.

Foot Locker Background Information
(This description is provided by the company.)

Foot Locker, Inc. leads the celebration of sneaker and youth culture around the globe through a portfolio of brands including Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, Footaction, and Sidestep. With approximately 3,000 retail stores in 27 countries across North America, Europe, Asia, Australia, and New Zealand, as well as websites and mobile apps, the Company’s purpose is to inspire and empower youth culture around the world, by fueling a shared passion for self-expression and creating unrivaled experiences at the heart of the global sneaker community. Foot Locker, Inc. has its corporate headquarters in New York.

This article originally appeared on Fintel

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