On September 8, 2023, Mary Dillon, President & CEO of Foot Locker Inc (FL, Financial), made a significant insider purchase of 5,510 shares of the company's stock. This move is noteworthy and deserves a closer look.
Who is Mary Dillon?
Mary Dillon is the President & CEO of Foot Locker Inc, a leading global retailer of athletically inspired shoes and apparel. Dillon has a proven track record of leadership and has been instrumental in driving the company's growth and success. Her recent purchase of Foot Locker Inc shares further demonstrates her confidence in the company's future prospects.
About Foot Locker Inc
Foot Locker Inc is a global retailer of athletically inspired shoes and apparel. The company operates in two segments, North America and International. It offers athletic footwear and apparel under various brands, including Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, and Footaction. The company's mission 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 sport and sneaker communities.
Insider Buying Analysis
Over the past year, Mary Dillon has purchased a total of 27,649 shares and sold 0 shares. This recent acquisition of 5,510 shares is a strong signal of her belief in the company's potential.
The insider transaction history for Foot Locker Inc shows a total of 2 insider buys over the past year, compared to 15 insider sells. This could indicate a shift in sentiment among the company's insiders.
The relationship between insider buying/selling and stock price can provide valuable insights. In general, insider buying is considered a bullish signal, as it indicates that insiders believe the stock price will rise. Conversely, insider selling is often seen as a bearish signal. In this case, the insider's purchase could suggest a positive outlook for Foot Locker Inc's stock price.
Valuation
On the day of the insider's recent buy, shares of Foot Locker Inc were trading at $18.17, giving the company a market cap of $1.67 billion. The price-earnings ratio is 11.50, lower than both the industry median of 16.74 and the company’s historical median price-earnings ratio. This suggests that the stock may be undervalued.
The price-to-GF-Value ratio of Foot Locker Inc is 0.43, based on a GuruFocus Value of $42.53. This indicates that the stock is significantly undervalued.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance. In this case, the GF Value suggests that Foot Locker Inc's stock has significant upside potential.
In conclusion, the insider's recent purchase, coupled with the company's undervalued status, could signal a promising future for Foot Locker Inc's stock. However, as always, investors should conduct their own research and consider multiple factors before making investment decisions.
