Office Depot Inc. (NASDAQ:ODP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Monday. The brokerage presently has a $5.50 price target on the stock. Zacks Investment Research’s target price would suggest a potential upside of 12.94% from the stock’s previous close.
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.”
ODP has been the topic of a number of other reports. TheStreet upgraded shares of Office Depot from a “sell” rating to a “hold” rating in a research report on Wednesday, August 10th. Telsey Advisory Group lowered their target price on shares of Office Depot from $5.00 to $4.50 and set a “market perform” rating on the stock in a research report on Friday, October 28th. Finally, Morgan Stanley restated a “hold” rating and set a $4.35 target price on shares of Office Depot in a research report on Tuesday, August 16th. Seven equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average target price of $5.87.
Office Depot (NASDAQ:ODP) traded up 0.513% during trading on Monday, reaching $4.895. 3,311,906 shares of the company’s stock were exchanged. Office Depot has a 52 week low of $3.01 and a 52 week high of $7.91. The firm has a market capitalization of $2.59 billion, a price-to-earnings ratio of 8.679 and a beta of 3.15. The stock has a 50-day moving average price of $3.74 and a 200 day moving average price of $3.59.
Office Depot (NASDAQ:ODP) last announced its earnings results on Wednesday, November 2nd. The company reported $0.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.15 by $0.01. The business had revenue of $2.84 billion for the quarter, compared to analyst estimates of $3.49 billion. Office Depot had a net margin of 2.41% and a return on equity of 11.70%. The company’s revenue for the quarter was down 6.9% compared to the same quarter last year. During the same period last year, the firm posted $0.16 earnings per share. Equities research analysts forecast that Office Depot will post $0.41 earnings per share for the current fiscal year.
The business 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. The ex-dividend date is Tuesday, November 22nd. This represents a $0.10 annualized dividend and a dividend yield of 2.05%. Office Depot’s payout ratio is currently 17.54%.
Several large investors have recently modified their holdings of the company. Hotchkis & Wiley Capital Management LLC raised its stake in shares of Office Depot by 77.1% in the second quarter. Hotchkis & Wiley Capital Management LLC now owns 46,549,207 shares of the company’s stock valued at $154,078,000 after buying an additional 20,269,877 shares during the last quarter. Alliancebernstein L.P. raised its stake in shares of Office Depot by 86.8% in the second quarter. Alliancebernstein L.P. now owns 35,753,734 shares of the company’s stock valued at $118,345,000 after buying an additional 16,614,118 shares during the last quarter. Bank of New York Mellon Corp raised its stake in shares of Office Depot by 127.9% in the third quarter. Bank of New York Mellon Corp now owns 27,967,852 shares of the company’s stock valued at $99,846,000 after buying an additional 15,695,817 shares during the last quarter. TIAA CREF Investment Management LLC raised its stake in shares of Office Depot by 211.0% in the second quarter. TIAA CREF Investment Management LLC now owns 16,599,542 shares of the company’s stock valued at $54,944,000 after buying an additional 11,261,906 shares during the last quarter. Finally, Fairpointe Capital LLC raised its stake in shares of Office Depot by 53.4% in the second quarter. Fairpointe Capital LLC now owns 28,751,416 shares of the company’s stock valued at $95,168,000 after buying an additional 10,012,587 shares during the last quarter. Institutional investors own 92.97% 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.