Foot Locker Stock Falters After Recent Highs

Berenberg chimed in as well, with a price-target hike to $54

Deputy Editor
Dec 11, 2020 at 11:20 AM
facebook twitter linkedin


The shares of Foot Locker Inc (NYSE:FL) are down 0.8% at $41.90 at last check, after KeyBanc initiated coverage with a "sector weight" rating. The firm believes the shoe retailer is making the right investments in regard to e-commerce, international, and product, but notes the tough competition as things start to return to normal after the pandemic. Meanwhile, Berenberg today raised its price target to $54 from $52. 

After bouncing off the 60-day moving average, a trendline of support since August, FL's recent climb culminated in a Dec. 9 annual high of $43.07. Though it has taken a breather since then, the equity remains an impressive 140% above its March lows. 

There is plenty of room for more upgrades amongst the brokerage bunch, with 10 of the 19 analysts in coverage sporting a "hold" or worse rating. An unwinding of short interest could act as a tailwind as well, as the 6.32 million shares sold short still make up 7% of FL's available float, and would take nearly three days to cover at the stock's average pace of trading.  

Lastly, now looks like a good time to weigh in on Foot Locker options. The stock's Schaeffer's Volatility Index (SVI) of 45% stands higher than 15% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners