Office Depot Inc. (ODP) Raised to Buy at Zacks Investment Research
Office Depot Inc. (NASDAQ:ODP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday. The firm presently has a $5.25 target price on the stock. Zacks Investment Research’s price target would indicate a potential upside of 12.18% from the stock’s current price.
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.”
Several other equities research analysts have also issued reports on ODP. TheStreet upgraded shares of Office Depot from a “sell” rating to a “hold” rating in a research note on Wednesday, August 10th. Morgan Stanley restated a “hold” rating and set a $4.35 price target on shares of Office Depot in a research note on Tuesday, August 16th. Finally, Telsey Advisory Group decreased their price target on shares of Office Depot from $5.00 to $4.50 and set a “market perform” rating for the company in a research note on Friday, October 28th. Seven research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus price target of $5.84.
Office Depot (NASDAQ:ODP) traded down 0.85% during midday trading on Monday, reaching $4.64. The company’s stock had a trading volume of 3,987,823 shares. The stock has a 50-day moving average price of $3.56 and a 200 day moving average price of $3.63. Office Depot has a 12 month low of $3.01 and a 12 month high of $7.91. The company has a market cap of $2.45 billion, a PE ratio of 8.23 and a beta of 3.15.
Office Depot (NASDAQ:ODP) last issued its quarterly earnings results on Wednesday, November 2nd. The company reported $0.16 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ 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 company earned $2.84 billion during the quarter, compared to analyst estimates of $3.49 billion. During the same quarter last year, the business posted $0.16 EPS. Office Depot’s quarterly revenue was down 6.9% compared to the same quarter last year. Analysts expect that Office Depot will post $0.41 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 15th. Investors of record on Friday, November 25th will be paid a $0.025 dividend. The ex-dividend date of this dividend is Tuesday, November 22nd. This represents a $0.10 dividend on an annualized basis and a yield of 2.14%. Office Depot’s dividend payout ratio is 17.54%.
In related news, EVP Michael R. Allison sold 23,434 shares of Office Depot stock in a transaction that occurred on Wednesday, August 24th. The shares were sold at an average price of $3.64, for a total value of $85,299.76. Following the completion of the transaction, the executive vice president now directly owns 625,883 shares in the company, valued at approximately $2,278,214.12. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.47% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ODP. LS Investment Advisors LLC raised its position in Office Depot by 67.3% in the second quarter. LS Investment Advisors LLC now owns 30,705 shares of the company’s stock worth $102,000 after buying an additional 12,357 shares in the last quarter. CHICAGO TRUST Co NA raised its position in Office Depot by 49.9% in the third quarter. CHICAGO TRUST Co NA now owns 28,783 shares of the company’s stock worth $103,000 after buying an additional 9,585 shares in the last quarter. Bank of Montreal Can acquired a new position in Office Depot during the second quarter worth $106,000. Frontier Wealth Management LLC acquired a new position in Office Depot during the second quarter worth $113,000. Finally, Airain ltd acquired a new position in Office Depot during the third quarter worth $116,000. Institutional investors and hedge funds own 92.62% of the company’s stock.
Office Depot Company Profile
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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