Office Depot Inc. (ODP) Downgraded by Zacks Investment Research to Hold
According to Zacks, “After four successive quarters of negative earnings surprises, Office Depot posted an earnings beat in third-quarter 2016. However, top line 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 that has underperformed the Zacks Categorized industry year-to-date. 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.”
Other analysts have also recently issued reports about the company. Telsey Advisory Group dropped their target price on Office Depot from $5.00 to $4.50 and set a market perform rating for the company in a report on Friday, October 28th. Morgan Stanley restated a hold rating and issued a $4.35 target price on shares of Office Depot in a report on Tuesday, August 16th. Finally, TheStreet upgraded Office Depot from a sell rating to a hold rating in a report on Wednesday, August 10th. Eight investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus target price of $5.87.
Shares of Office Depot (NASDAQ:ODP) opened at 4.86 on Tuesday. Office Depot has a 52-week low of $3.01 and a 52-week high of $7.91. The stock’s 50 day moving average price is $3.77 and its 200 day moving average price is $3.58. The company has a market capitalization of $2.57 billion, a P/E ratio of 8.62 and a beta of 3.15.
Office Depot (NASDAQ:ODP) last announced its earnings results on Wednesday, November 2nd. The company reported $0.16 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.15 by $0.01. The business earned $2.84 billion during the quarter, compared to the consensus estimate of $3.49 billion. Office Depot had a return on equity of 11.70% and a net margin of 2.41%. The business’s quarterly revenue was down 6.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.16 EPS. On average, equities research analysts forecast that Office Depot will post $0.41 earnings per share for the current fiscal year.
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The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 15th. Stockholders of record on Friday, November 25th will be issued a dividend of $0.025 per share. This represents a $0.10 dividend on an annualized basis and a dividend yield of 2.06%. The ex-dividend date is Tuesday, November 22nd. Office Depot’s dividend payout ratio is presently 17.54%.
A number of institutional investors have recently bought and sold shares of the company. CHICAGO TRUST Co NA raised its position in Office Depot by 49.9% in the third quarter. CHICAGO TRUST Co NA now owns 28,783 shares of the company’s stock valued at $103,000 after buying an additional 9,585 shares during the last quarter. LS Investment Advisors LLC raised its position in Office Depot by 67.3% in the second quarter. LS Investment Advisors LLC now owns 30,705 shares of the company’s stock valued at $102,000 after buying an additional 12,357 shares during the last quarter. Bank of Montreal Can purchased a new position in Office Depot during the second quarter valued at about $106,000. Airain ltd purchased a new position in Office Depot during the third quarter valued at about $116,000. Finally, Frontier Wealth Management LLC purchased a new position in Office Depot during the second quarter valued at about $113,000. 92.97% of the stock is currently owned by hedge funds and other institutional investors.
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.
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