Zacks Investment Research upgraded shares of Office Depot (NASDAQ:ODP) from a sell rating to a hold rating in a research note released 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.”
A number of other brokerages have also recently issued reports on ODP. Deutsche Bank reissued a hold rating and set a $5.00 price target (down from $5.75) on shares of Office Depot in a research report on Thursday, August 10th. Bank of America reaffirmed a buy rating and issued a $6.00 target price on shares of Office Depot in a report on Tuesday, September 5th. ValuEngine cut shares of Office Depot from a strong-buy rating to a buy rating in a report on Friday, September 1st. BidaskClub cut shares of Office Depot from a hold rating to a sell rating in a report on Friday, September 22nd. Finally, Jefferies Group reaffirmed a hold rating and issued a $4.15 target price (down from $5.00) on shares of Office Depot in a report on Friday, October 6th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and two have issued a buy rating to the company. The stock currently has an average rating of Hold and a consensus target price of $5.08.
Shares of Office Depot (NASDAQ:ODP) traded down $0.10 during midday trading on Tuesday, reaching $3.27. 5,538,000 shares of the company were exchanged, compared to its average volume of 5,814,202. Office Depot has a one year low of $2.97 and a one year high of $6.26. The stock has a market cap of $1,739.32, a PE ratio of 7.17, a P/E/G ratio of 1.05 and a beta of 2.87. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.93 and a current ratio of 1.52.
Office Depot (NASDAQ:ODP) last issued its quarterly earnings results on Thursday, November 9th. The specialty retailer reported $0.14 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.14. Office Depot had a net margin of 3.00% and a return on equity of 12.86%. The company had revenue of $2.62 billion during the quarter, compared to analysts’ expectations of $2.61 billion. During the same period last year, the company posted $0.16 EPS. Office Depot’s revenue was down 7.6% on a year-over-year basis. research analysts anticipate that Office Depot will post 0.44 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Friday, December 15th. Shareholders of record on Friday, November 24th will be issued a $0.025 dividend. The ex-dividend date is Wednesday, November 22nd. This represents a $0.10 annualized dividend and a yield of 3.06%. Office Depot’s dividend payout ratio (DPR) is presently 16.95%.
In other Office Depot news, insider Michael R. Allison sold 360,000 shares of Office Depot stock in a transaction dated Friday, October 13th. The shares were sold at an average price of $3.83, for a total value of $1,378,800.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.43% of the stock is currently owned by insiders.
Several hedge funds have recently made changes to their positions in ODP. AJO LP grew its stake in shares of Office Depot by 5,759.7% in the second quarter. AJO LP now owns 11,554,182 shares of the specialty retailer’s stock worth $65,166,000 after acquiring an additional 11,357,003 shares during the period. Dimensional Fund Advisors LP grew its stake in shares of Office Depot by 20.0% in the second quarter. Dimensional Fund Advisors LP now owns 34,029,233 shares of the specialty retailer’s stock worth $191,925,000 after acquiring an additional 5,677,685 shares during the period. LSV Asset Management grew its stake in shares of Office Depot by 125.9% in the second quarter. LSV Asset Management now owns 7,849,227 shares of the specialty retailer’s stock worth $44,269,000 after acquiring an additional 4,374,431 shares during the period. Hotchkis & Wiley Capital Management LLC grew its stake in shares of Office Depot by 16.6% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 30,237,692 shares of the specialty retailer’s stock worth $137,279,000 after acquiring an additional 4,305,079 shares during the period. Finally, Prudential Financial Inc. grew its stake in shares of Office Depot by 72.2% in the second quarter. Prudential Financial Inc. now owns 9,999,340 shares of the specialty retailer’s stock worth $56,396,000 after acquiring an additional 4,192,720 shares during the period. 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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