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Summary

  • Four insiders sold Foot Locker stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • Three of these four insiders decreased their holdings by more than 10%.

Foot Locker (NYSE:FL) operates as a retailer of athletic footwear and apparel.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of Foot Locker's insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Matthew McKennaDirectorMarch 262,175No73,910 shares2.9%
Giovanna CiprianoSVPMarch 1916,459No43,351 shares27.5%
Jeffrey BerkSVPMarch 12-17106,479No32,369 shares76.7%
Peter BrownCIOMarch 1013,333Yes20,654 shares + 13,334 options28.2%

There have been 138,446 shares sold by insiders during the last 30 days. Peter Brown sold shares pursuant to the Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Foot Locker's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
March 2014138,4460
February 201413,3330
January 201400
December 201345,3260
November 201347,0870
October 20138,1000
September 201300
August 2013200,6330
July 201335,9620
June 201320,8630
May 201332,8770
April 201300
March 201300
February 201300
January 201300

There have been 542,627 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Foot Locker reported the fiscal 2013 full-year, which ended February 1, financial results on March 7 with the following highlights:

Revenue$6.5 billion
Net income$429 million
Cash$867 million
Debt$139 million

The four insiders sold their shares after these results.

Outlook

Foot Locker is planning for a mid-single-digit comparable sales gain and a double-digit percentage EPS increase during 2014.

Competition

Foot Locker's competitors include Finish Line (NASDAQ:FINL) and Dick's Sporting Goods (NYSE:DKS). Here is a table comparing these companies.

CompanyFLFINLDKS
Market Cap:7.06B1.33B6.77B
Qtrly Rev Growth (yoy):0.050.170.08
Revenue:6.50B1.67B6.21B
Gross Margin:0.330.330.31
EBITDA:795.33M158.26M699.62M
Operating Margin:0.100.070.09
Net Income:429.00M76.90M337.60M
EPS:2.851.562.69
P/E:16.6917.5120.51
PEG (5 yr expected):1.401.221.09
P/S:1.070.791.08
Insider Ownership:3.21%2.15%1.32%

Foot Locker has the weakest revenue growth among these three companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
FINL014,978
DKS2,900129,341

Only Foot Locker has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Foot Locker, and there have not been any insiders buying Foot Locker during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Foot Locker has an insider ownership of 3.21%.

Before going short Foot Locker, I would like to get a bearish confirmation from the Point & Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.