Office Depot (ODP) Stock Rating Upgraded by Zacks Investment Research
Office Depot (NASDAQ:ODP) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Persistent weakness in the office products sector, stiff competition, loss of customers in Business Solutions Division and lower traffic count have hurt Office Depot that has underperformed the industry so far in 2017. We note both the top and bottom lines continued to decline year over year during the third quarter as well. Further, after assessing the impact of recent hurricanes, soft sales during the back to school period, temporary rise in the supply chain costs and investments to catapult into a services-driven company, Office Depot trimmed its full year adjusted operating income view. Nevertheless, the company is concentrating on business operating model, growth prospects, cost structure and omni-channel capabilities. Management expects total sales to be lower in 2017 versus 2016 due to store closures, tough market conditions and losses of contract customers. However, the rate of decline is likely to decelerate in the final quarter.”
ODP has been the subject of a number of other reports. Deutsche Bank restated a “hold” rating and set a $5.00 target price (down from $5.75) on shares of Office Depot in a report on Thursday, August 10th. Bank of America restated a “buy” rating and set a $6.00 target price on shares of Office Depot in a report on Tuesday, September 5th. ValuEngine cut Office Depot from a “strong-buy” rating to a “buy” rating in a report on Friday, September 1st. BidaskClub cut Office Depot from a “hold” rating to a “sell” rating in a report on Friday, September 22nd. Finally, Jefferies Group restated a “hold” rating and set a $4.15 target price (down from $5.00) on shares of Office Depot in a report on Friday, October 6th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and two have given a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus price target of $5.08.
Shares of Office Depot (NASDAQ ODP) opened at $3.26 on Tuesday. Office Depot has a 52 week low of $2.97 and a 52 week high of $6.26. The firm has a market capitalization of $1,687.71, a PE ratio of 6.96, a PEG ratio of 1.02 and a beta of 2.87. The company has a current ratio of 1.52, a quick ratio of 0.93 and a debt-to-equity ratio of 0.51.
Office Depot (NASDAQ:ODP) last issued its earnings results on Thursday, November 9th. The specialty retailer reported $0.14 EPS for the quarter, meeting the Zacks’ consensus estimate of $0.14. Office Depot had a return on equity of 12.86% and a net margin of 3.00%. The firm had revenue of $2.62 billion for the quarter, compared to analyst estimates of $2.61 billion. During the same quarter in the prior year, the firm earned $0.16 earnings per share. Office Depot’s revenue for the quarter was down 7.6% on a year-over-year basis. research analysts forecast that Office Depot will post 0.44 EPS for the current fiscal year.
In other news, insider Michael R. Allison sold 360,000 shares of the firm’s stock in a transaction dated Friday, October 13th. The stock was sold at an average price of $3.83, for a total transaction of $1,378,800.00. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. 2.43% of the stock is currently owned by company insiders.
A number of large investors have recently added to or reduced their stakes in the stock. AXA grew its stake in shares of Office Depot by 101.4% in the 3rd quarter. AXA now owns 1,290,026 shares of the specialty retailer’s stock valued at $5,856,000 after purchasing an additional 649,526 shares during the last quarter. Public Employees Retirement System of Ohio boosted its stake in shares of Office Depot by 441.9% in the third quarter. Public Employees Retirement System of Ohio now owns 355,872 shares of the specialty retailer’s stock valued at $1,616,000 after buying an additional 290,200 shares in the last quarter. California Public Employees Retirement System boosted its stake in shares of Office Depot by 2.0% in the third quarter. California Public Employees Retirement System now owns 2,240,028 shares of the specialty retailer’s stock valued at $10,170,000 after buying an additional 44,107 shares in the last quarter. Cubist Systematic Strategies LLC purchased a new stake in shares of Office Depot in the third quarter valued at approximately $344,000. Finally, Engineers Gate Manager LP purchased a new stake in shares of Office Depot in the third quarter valued at approximately $390,000. Hedge funds and other institutional investors own 93.29% of the company’s stock.
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Office Depot Company Profile
Office Depot, Inc provides a selection of products and services to consumers and businesses of various sizes. The Company’s segments include North American Retail Division and North American Business Solutions Division. The North American Retail Division includes retail stores in the United States, including Puerto Rico and the United States Virgin Islands, which offer office supplies, technology products and solutions, business machines and related supplies, facilities products and office furniture.
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