Zacks Investment Research upgraded shares of Office Depot (NASDAQ:ODP) from a sell rating to a hold rating in a report issued on Tuesday, December 5th.
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 equities analysts have also recently issued reports on the company. JPMorgan Chase & Co. cut Office Depot from a neutral rating to an underweight rating in a report on Monday, October 30th. 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. Bank of America reiterated a buy rating and issued a $6.00 target price on shares of Office Depot in a report on Tuesday, September 5th. Finally, Jefferies Group restated a hold rating and set a $4.15 price objective (down from $5.00) on shares of Office Depot in a research note on Friday, October 6th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and two have given a buy rating to the company’s stock. The stock has a consensus rating of Hold and a consensus target price of $5.08.
Office Depot (NASDAQ:ODP) last released its quarterly earnings data on Thursday, November 9th. The specialty retailer reported $0.14 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $0.14. The business had revenue of $2.62 billion for the quarter, compared to the consensus estimate of $2.61 billion. Office Depot had a return on equity of 12.86% and a net margin of 3.00%. The company’s revenue was down 7.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.16 EPS. equities analysts predict that Office Depot will post 0.44 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, December 15th. Stockholders of record on Friday, November 24th were issued a $0.025 dividend. This represents a $0.10 dividend on an annualized basis and a dividend yield of 2.82%. The ex-dividend date of this dividend was Wednesday, November 22nd. Office Depot’s dividend payout ratio is presently 16.95%.
In other news, insider Michael R. Allison sold 360,000 shares of the stock in a transaction dated Friday, October 13th. The stock was sold at an average price of $3.83, for a total value of $1,378,800.00. The sale was disclosed in a document filed with the SEC, which is available through this link. 2.43% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently bought and sold shares of the stock. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its holdings in Office Depot by 0.3% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 75,400 shares of the specialty retailer’s stock worth $425,000 after acquiring an additional 197 shares during the period. American Century Companies Inc. boosted its position in Office Depot by 0.5% during the second quarter. American Century Companies Inc. now owns 258,967 shares of the specialty retailer’s stock worth $1,461,000 after purchasing an additional 1,193 shares in the last quarter. Teacher Retirement System of Texas boosted its position in Office Depot by 3.4% during the second quarter. Teacher Retirement System of Texas now owns 42,471 shares of the specialty retailer’s stock worth $240,000 after purchasing an additional 1,412 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in Office Depot by 11.8% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 19,425 shares of the specialty retailer’s stock worth $110,000 after purchasing an additional 2,046 shares in the last quarter. Finally, PNC Financial Services Group Inc. boosted its position in Office Depot by 13.4% during the second quarter. PNC Financial Services Group Inc. now owns 18,514 shares of the specialty retailer’s stock worth $104,000 after purchasing an additional 2,187 shares in the last quarter. 93.00% of the stock is currently owned by hedge funds and other institutional investors.
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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