Zacks Investment Research upgraded shares of Office Depot Inc. (NASDAQ:ODP) from a hold rating to a buy rating in a research note issued to investors on Monday. The firm currently has $5.50 price objective on the stock.
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 several other research reports. Telsey Advisory Group lowered their price target on Office Depot from $5.00 to $4.50 and set a market perform rating on the stock in a report on Friday, October 28th. Morgan Stanley reaffirmed a hold rating and issued a $4.35 price target on shares of Office Depot in a report on Tuesday, August 16th. Finally, TheStreet raised Office Depot from a sell rating to a hold rating in a report on Wednesday, August 10th. Seven research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. Office Depot currently has an average rating of Hold and an average price target of $5.87.
Shares of Office Depot (NASDAQ:ODP) opened at 4.84 on Monday. Office Depot has a one year low of $3.01 and a one year high of $7.91. The company has a market capitalization of $2.56 billion, a PE ratio of 8.58 and a beta of 3.15. The company has a 50-day moving average price of $3.77 and a 200 day moving average price of $3.58.
Office Depot (NASDAQ:ODP) last issued its quarterly earnings data 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 analysts’ expectations of $3.49 billion. Office Depot had a return on equity of 11.70% and a net margin of 2.41%. The firm’s quarterly revenue was down 6.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.16 EPS. Equities analysts anticipate that Office Depot will post $0.41 EPS for the current year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, December 15th. Investors of record on Friday, November 25th will be given a dividend of $0.025 per share. The ex-dividend date of this dividend is Tuesday, November 22nd. This represents a $0.10 annualized dividend and a yield of 2.07%. Office Depot’s payout ratio is 17.54%.
A number of institutional investors have recently bought and sold shares of the company. Cornerstone Capital Management Holdings LLC. raised its position in Office Depot by 10,813.0% in the third quarter. Cornerstone Capital Management Holdings LLC. now owns 1,473,253 shares of the company’s stock valued at $5,258,000 after buying an additional 1,459,753 shares during the last quarter. Ameritas Investment Partners Inc. raised its stake in shares of Office Depot by 75.1% in the third quarter. Ameritas Investment Partners Inc. now owns 212,559 shares of the company’s stock worth $759,000 after buying an additional 91,148 shares in the last quarter. Phocas Financial Corp. acquired a new stake in shares of Office Depot during the third quarter worth $9,804,000. K2 Principal Fund L.P. raised its stake in shares of Office Depot by 1,331.0% in the third quarter. K2 Principal Fund L.P. now owns 226,525 shares of the company’s stock worth $809,000 after buying an additional 210,695 shares in the last quarter. Finally, Highbridge Capital Management LLC raised its stake in shares of Office Depot by 76.9% in the third quarter. Highbridge Capital Management LLC now owns 3,637,339 shares of the company’s stock worth $12,985,000 after buying an additional 1,581,404 shares in the last quarter. Institutional investors and hedge funds own 92.97% 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.