Office Depot Inc. (ODP) Cut 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 Tuesday.
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 research analysts have also commented on ODP. TheStreet upgraded Office Depot from a “sell” rating to a “hold” rating in a research 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 research report on Tuesday, August 16th. Finally, Telsey Advisory Group lowered their price target on Office Depot from $5.00 to $4.50 and set a “market perform” rating for the company in a research report on Friday, October 28th. Eight analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. Office Depot presently has a consensus rating of “Hold” and an average target price of $5.84.
Shares of Office Depot (NASDAQ:ODP) traded up 3.58% on Tuesday, reaching $4.77. The company had a trading volume of 3,819,771 shares. Office Depot has a 12 month low of $3.01 and a 12 month high of $7.91. The firm has a market capitalization of $2.52 billion, a PE ratio of 8.46 and a beta of 3.15. The firm’s 50 day moving average is $3.62 and its 200 day moving average is $3.60.
Office Depot (NASDAQ:ODP) last released its quarterly earnings results on Wednesday, November 2nd. The company reported $0.16 EPS for the quarter, topping the consensus estimate of $0.15 by $0.01. Office Depot had a return on equity of 11.70% and a net margin of 2.41%. The business earned $2.84 billion during the quarter, compared to analyst estimates of $3.49 billion. During the same period last year, the business posted $0.16 earnings per share. The company’s quarterly revenue was down 6.9% on a year-over-year basis. On average, equities research analysts expect that Office Depot will post $0.41 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 15th. Shareholders of record on Friday, November 25th will be paid a $0.025 dividend. This represents a $0.10 dividend on an annualized basis and a yield of 2.16%. The ex-dividend date is Tuesday, November 22nd. Office Depot’s dividend payout ratio is presently 17.54%.
In other Office Depot news, EVP Michael R. Allison sold 23,434 shares of the firm’s stock in a transaction on Wednesday, August 24th. The stock was sold at an average price of $3.64, for a total value of $85,299.76. Following the sale, the executive vice president now directly owns 625,883 shares in the company, valued at $2,278,214.12. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 1.47% of the stock is owned by company insiders.
Several hedge funds have recently bought and sold shares of the company. Whitebox Advisors LLC boosted its stake in Office Depot by 304.8% in the second quarter. Whitebox Advisors LLC now owns 3,683,893 shares of the company’s stock worth $12,194,000 after buying an additional 2,773,839 shares during the period. Geode Capital Management LLC boosted its stake 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 during the period. Renaissance Technologies LLC boosted its stake 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 during the period. Nisa Investment Advisors LLC boosted its stake in Office Depot by 12.2% in the second quarter. Nisa Investment Advisors LLC now owns 36,700 shares of the company’s stock worth $121,000 after buying an additional 4,000 shares during the period. Finally, UBS Asset Management Americas Inc. boosted its stake in Office Depot by 1.4% in the second quarter. UBS Asset Management Americas Inc. now owns 552,800 shares of the company’s stock worth $1,830,000 after buying an additional 7,565 shares during the period. Institutional investors and hedge funds own 92.62% of the company’s stock.
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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