Office Depot Inc. (ODP) Rating Lowered to Hold at Zacks Investment Research
Office Depot Inc. (NASDAQ:ODP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “After four consecutive quarters of negative earnings surprises, Office Depot posted an earnings beat in third-quarter 2016. However, it continues to battle a dismal top line that missed the estimate for the ninth straight quarter. Persistent weakness in the office products sector, technological advancements and stiff competition from online retailers are weighing on the company’s performance. Both the top and bottom lines continue to decline year over year. Nevertheless, management has undertaken a strategic review of business operating model, growth prospects and cost structure to bring itself back on the growth trajectory and decided to sell its international operations. These endeavors will take time to reap benefit. For now management anticipates total sales to be lower in fourth-quarter 2016 versus 2015 due to store closures, business disruption owing to merger related issues and tough market conditions.”
Other equities analysts have also recently issued reports about the stock. TheStreet upgraded shares of Office Depot from a “sell” rating to a “hold” rating in a report on Wednesday, August 10th. Morgan Stanley restated a “hold” rating and set a $4.35 price target on shares of Office Depot in a report on Tuesday, August 16th. Finally, Telsey Advisory Group lowered their price target on shares of Office Depot from $5.00 to $4.50 and set a “market perform” rating on the stock in a report on Friday, October 28th. Eight research analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $5.66.
Office Depot (NASDAQ:ODP) opened at 4.15 on Thursday. Office Depot has a 1-year low of $3.01 and a 1-year high of $7.91. The firm has a market capitalization of $2.19 billion, a P/E ratio of 7.36 and a beta of 3.15. The company has a 50-day moving average price of $3.47 and a 200-day moving average price of $3.69.
Office Depot (NASDAQ:ODP) last posted its quarterly earnings results on Wednesday, November 2nd. The company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.15 by $0.01. Office Depot had a net margin of 2.41% and a return on equity of 11.70%. The business had revenue of $2.84 billion for the quarter, compared to analysts’ expectations of $3.49 billion. During the same period in the previous year, the company posted $0.16 EPS. Office Depot’s revenue was down 6.9% on a year-over-year basis. On average, equities research analysts predict that Office Depot will post $0.41 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Thursday, December 15th. Shareholders of record on Friday, November 25th will be given a dividend of $0.025 per share. This represents a $0.10 dividend on an annualized basis and a yield of 2.41%. The ex-dividend date is Tuesday, November 22nd. Office Depot’s dividend payout ratio is 17.54%.
In other Office Depot news, EVP Michael R. Allison sold 23,434 shares of the business’s stock in a transaction on Wednesday, August 24th. The shares were sold at an average price of $3.64, for a total transaction of $85,299.76. Following the completion of the transaction, the executive vice president now owns 625,883 shares of the company’s stock, valued at approximately $2,278,214.12. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 1.47% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ODP. M&T Bank Corp raised its position in Office Depot by 11.8% in the first quarter. M&T Bank Corp now owns 18,844 shares of the company’s stock worth $134,000 after buying an additional 1,982 shares in the last quarter. UBS Asset Management Americas Inc. raised its position in Office Depot by 8.9% in the first quarter. UBS Asset Management Americas Inc. now owns 545,235 shares of the company’s stock worth $3,871,000 after buying an additional 44,332 shares in the last quarter. Geode Capital Management LLC raised its position in Office Depot by 9.2% in the first quarter. Geode Capital Management LLC now owns 3,673,356 shares of the company’s stock worth $26,080,000 after buying an additional 308,222 shares in the last quarter. Renaissance Technologies LLC raised its position in Office Depot by 93.9% in the first quarter. Renaissance Technologies LLC now owns 3,043,296 shares of the company’s stock worth $21,607,000 after buying an additional 1,473,696 shares in the last quarter. Finally, Nuveen Asset Management LLC raised its position in Office Depot by 3.2% in the first quarter. Nuveen Asset Management LLC now owns 204,300 shares of the company’s stock worth $1,451,000 after buying an additional 6,300 shares in the last quarter. 95.27% of the stock is owned by hedge funds and other institutional investors.
About Office Depot
Office Depot, Inc (Office Depot) is a provider of office products and services. The Company sells products and services to consumers through three segments: North American Retail Division, North American Business Solutions Division and International Division. It operates under the Office Depot and OfficeMax brands.
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