Zacks Investment Research upgraded shares of Office Depot (NASDAQ:ODP) from a hold rating to a buy rating in a report published on Monday. They currently have $2.50 target price on the specialty retailer’s stock.
According to Zacks, “Office Depot’s focus on business operating model, growth prospects and omni-channel capabilities have led the stock to gain and outpace the industry in a month. Strategic endeavors, including strengthening of core businesses and expansion of service and subscription offerings aided the top line that not only beat the consensus mark for the third time in a row but also grew year over year during first-quarter 2018. Although, bottom line continues to decline that did not deter management from providing an encouraging outlook for 2018. The company is trying all means to give itself a complete makeover in an environment where demand for office products (paper-based) has shrunk due to technological advancements. Dismal comparable sales run across Retail Division may be the testimony of the same. Nevertheless, management is focusing on marketing, advertising and other growth-related investments but at the cost of margins in the short run.”
Get Office Depot alerts:
A number of other equities analysts also recently commented on ODP. ValuEngine downgraded shares of Office Depot from a hold rating to a sell rating in a research note on Wednesday, May 2nd. BidaskClub raised shares of Office Depot from a strong sell rating to a sell rating in a research note on Thursday, April 19th. Finally, Jefferies Group reaffirmed a hold rating on shares of Office Depot in a research note on Thursday, March 1st. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and one has given a buy rating to the stock. The company has a consensus rating of Hold and a consensus price target of $3.93.
Office Depot opened at $2.47 on Monday, according to Marketbeat. The stock has a market cap of $1.37 billion, a P/E ratio of 6.83, a price-to-earnings-growth ratio of 0.45 and a beta of 2.67. Office Depot has a twelve month low of $2.39 and a twelve month high of $2.49. The company has a current ratio of 1.39, a quick ratio of 0.90 and a debt-to-equity ratio of 0.78.
Office Depot (NASDAQ:ODP) last posted its quarterly earnings results on Wednesday, May 9th. The specialty retailer reported $0.08 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.08. The firm had revenue of $2.83 billion for the quarter, compared to analyst estimates of $2.74 billion. Office Depot had a net margin of 1.01% and a return on equity of 9.60%. Office Depot’s quarterly revenue was up 5.8% on a year-over-year basis. During the same period in the previous year, the business posted $0.16 earnings per share. equities analysts predict that Office Depot will post 0.32 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Friday, June 15th. Shareholders of record on Friday, May 25th will be paid a dividend of $0.025 per share. This represents a $0.10 dividend on an annualized basis and a yield of 4.05%. The ex-dividend date of this dividend is Thursday, May 24th. Office Depot’s dividend payout ratio (DPR) is presently 22.22%.
A number of hedge funds have recently modified their holdings of ODP. Creative Planning raised its stake in Office Depot by 55.4% during the fourth quarter. Creative Planning now owns 107,931 shares of the specialty retailer’s stock worth $382,000 after purchasing an additional 38,499 shares during the period. Schwab Charles Investment Management Inc. raised its stake in Office Depot by 7.2% during the fourth quarter. Schwab Charles Investment Management Inc. now owns 3,306,589 shares of the specialty retailer’s stock worth $11,706,000 after purchasing an additional 222,178 shares during the period. Alpha Windward LLC raised its stake in Office Depot by 38.0% during the fourth quarter. Alpha Windward LLC now owns 154,200 shares of the specialty retailer’s stock worth $546,000 after purchasing an additional 42,480 shares during the period. Strs Ohio raised its stake in Office Depot by 16.7% during the fourth quarter. Strs Ohio now owns 327,600 shares of the specialty retailer’s stock worth $1,159,000 after purchasing an additional 46,900 shares during the period. Finally, LSV Asset Management raised its stake in Office Depot by 3.7% during the fourth quarter. LSV Asset Management now owns 13,914,752 shares of the specialty retailer’s stock worth $49,258,000 after purchasing an additional 500,268 shares during the period. 95.18% of the stock is currently owned by institutional investors.
Office Depot Company Profile
Office Depot, Inc, together with its subsidiaries, provides various products and services. It operates in three divisions: Retail, Business Solutions, and CompuCom. The Retail division operates retail stores, which offer office supplies; technology products and solutions; business machines and related supplies; print, cleaning, breakroom, and facilities products; and office furniture in the United States, Puerto Rico, and the U.S.
Get a free copy of the Zacks research report on Office Depot (ODP)
For more information about research offerings from Zacks Investment Research, visit Zacks.com