Insider Trading Report: Foot Locker (FL)

Vesa Equity Investment, a major holder in Foot Locker (FL), recently added to their stake. The fund bought 509,575 shares of the company, increasing their holdings by 4.75 percent. The purchase price for the stake came to just under $19.7 million.

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  • While the fund has been buying, company insiders have generally been sellers over the past few years. Sales have occurred at prices as much as 37 percent higher than where shares currently trade.

    Overall, insiders own 11.6 percent of outstanding shares.

    The athletic footwear and apparel retailer operates over 3,100 stores in 27 countries. Shares are down 3 percent over the past year, as strong demand for athletic wear has been met with a major drop in demand for in-store shopping.

    Nevertheless, quarterly earnings are up 112 percent in the most recent quarter, with revenues up 9 percent.

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  • Action to take: Shares have recently pulled back in the past few sessions, bringing the price of shares back to the 50-day moving average.  With the insider buying here, shares look poised for a rebound before heading higher, likely to new all-time highs in the coming weeks.

    The February 2021 $40 calls, trading for about $2.05, look like an inexpensive way to bet on a rebound in the coming weeks. Traders will likely be able to book mid-to-high double-digit profits on a quick bounce in shares.