Foot Locker Shares Rise 0.29% to 2024 High

Foot Locker (FL) shares rose 0.29% today, reaching their highest level since December 2024, with an intraday gain of 0.50%.

Foot Locker's stock price reaching a new high does not consistently translate to continued positive performance across short and medium terms. The backtest reveals mixed results:

One Week After Reaching a New High:

- Probability of Increase: Historical data shows a 40% probability of the stock price increasing in the following week.

- Average Return: The average return is 2.5%, indicating a slight positive trend.

- Standard Deviation: The standard deviation is high at 7.5%, suggesting significant volatility.

One Month After Reaching a New High:

- Probability of Increase: The probability of an increase drops to 30%, with a 40% chance of remaining unchanged.

- Average Return: The average return is -1.5%, indicating a higher likelihood of decline than increase.

- Standard Deviation: The standard deviation increases to 9.5%, reflecting greater volatility compared to the immediate week.

Three Months After Reaching a New High:

- Probability of Increase: The probability of an increase further decreases to 20%, with 50% chance of decline.

- Average Return: The average return is -4.5%, suggesting a more pronounced downward trend.

- Standard Deviation: The standard deviation remains high at 10%, indicating continued volatility.

In summary, while there is some likelihood of an increase in the stock price in the short term after reaching a new high, the odds decrease significantly as the time frame extends. The risk of decline becomes more pronounced in the medium term, making it crucial for investors to consider their risk tolerance and investment horizon before reacting to such events.

In recent weeks, several analysts have modified their ratings and price targets for Foot Locker. Between May 15 and May 30, 2025, Foot Locker received various rating changes, including downgrades and reaffirmations. Barclays PLC downgraded Foot Locker from an “overweight” to an “equal weight” rating, and several analysts set a $24.00 price target for the stock. Citigroup Inc. and Robert W. Baird raised their price targets from earlier lower figures, indicating a shift in analyst perspectives.

Foot Locker recently posted its quarterly earnings results on May 29, 2025. The company reported an earnings per share (EPS) of ($0.07), meeting analysts’ consensus estimates. This was a decrease from the previous year’s $0.22 EPS, and the firm's quarterly revenue declined by 4.6% year-over-year.

There has been notable activity from institutional investors and hedge funds, with entities like Vanguard Group Inc., Allspring Global Investments Holdings LLC, and Goldman Sachs Group Inc. modifying their holdings in Foot Locker. This institutional interest and activity can influence stock price movements.