Office Depot (ODP) Upgraded to Buy by Zacks Investment Research
Zacks Investment Research upgraded shares of Office Depot (NASDAQ:ODP) from a hold rating to a buy rating in a research note published on Monday. They currently have $2.50 price target 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.”
Several other analysts have also issued reports on ODP. BidaskClub lowered shares of Office Depot from a hold rating to a sell rating in a research report on Wednesday, January 31st. ValuEngine lowered shares of Office Depot from a buy rating to a hold rating in a research report on Thursday, March 1st. Finally, Jefferies Group reiterated a hold rating on shares of Office Depot in a research report on Thursday, March 1st. Two research analysts have rated the stock with a sell rating, five have given a hold rating and one has assigned a buy rating to the company’s stock. Office Depot presently has an average rating of Hold and a consensus price target of $3.93.
Office Depot (NASDAQ:ODP) last announced its earnings results on Wednesday, May 9th. The specialty retailer reported $0.08 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.08. Office Depot had a net margin of 1.01% and a return on equity of 9.60%. The business had revenue of $2.83 billion for the quarter, compared to analyst estimates of $2.74 billion. During the same quarter last year, the business earned $0.16 earnings per share. The company’s revenue for the quarter was up 5.8% compared to the same quarter last year. equities analysts anticipate that Office Depot will post 0.32 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, June 15th. Stockholders of record on Friday, May 25th will be given a $0.025 dividend. The ex-dividend date is Thursday, May 24th. This represents a $0.10 annualized dividend and a dividend yield of 4.05%. Office Depot’s dividend payout ratio (DPR) is 22.22%.
Several hedge funds and other institutional investors have recently made changes to their positions in ODP. Allianz Asset Management GmbH boosted its position in Office Depot by 9.4% during the fourth quarter. Allianz Asset Management GmbH now owns 264,227 shares of the specialty retailer’s stock worth $936,000 after acquiring an additional 22,727 shares during the last quarter. UBS Asset Management Americas Inc. boosted its position in Office Depot by 5.4% during the fourth quarter. UBS Asset Management Americas Inc. now owns 628,712 shares of the specialty retailer’s stock worth $2,226,000 after acquiring an additional 32,027 shares during the last quarter. Creative Planning boosted its position 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 acquiring an additional 38,499 shares during the last quarter. Amundi Pioneer Asset Management Inc. acquired a new position in Office Depot during the fourth quarter worth about $171,000. Finally, Crossmark Global Holdings Inc. boosted its position in Office Depot by 78.9% during the fourth quarter. Crossmark Global Holdings Inc. now owns 157,409 shares of the specialty retailer’s stock worth $557,000 after acquiring an additional 69,402 shares during the last quarter. Institutional investors and hedge funds own 95.18% of the company’s stock.
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.
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