Office Depot, Inc. (ODP) Downgraded by Zacks Investment Research

Office Depot, Inc. (NASDAQ:ODP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday, July 11th.

According to Zacks, “Office Depot has undertaken a strategic review of its business operating model, growth prospects and cost structure to bring itself back on the growth trajectory. These helped the stock to outpace the industry in the past six months and post third straight quarter of earnings beat, as it reported first-quarter 2017 results. The company is also closing underperforming stores, reducing exposure to higher dollar-value inventory items, concentrating on e-Commerce platforms as well as focusing on providing innovative products and services. However, persistent weakness in the office products sector, technological advancements and stiff competition from online retailers are weighing on the company’s top line. Management anticipates total sales to be lower in 2017 versus 2016 due to store closures, tough market conditions and losses of contract customers in the prior year. However, the rate of decline is expected to decelerate sequentially.”

Several other equities analysts have also recently issued reports on the company. Telsey Advisory Group upped their price objective on Office Depot from $4.40 to $5.25 and gave the company a “market perform” rating in a research report on Wednesday, May 10th. Oppenheimer Holdings, Inc. reaffirmed a “hold” rating on shares of Office Depot in a research report on Tuesday, May 9th. Jefferies Group LLC reaffirmed a “hold” rating and issued a $5.00 price objective (up from $4.50) on shares of Office Depot in a research report on Wednesday, May 10th. Finally, BidaskClub raised Office Depot from a “hold” rating to a “buy” rating in a research report on Saturday, June 10th. Eight equities research analysts have rated the stock with a hold rating, The company presently has an average rating of “Hold” and a consensus price target of $5.12.

Shares of Office Depot (NASDAQ ODP) traded down 0.97% during midday trading on Tuesday, hitting $6.11. The stock had a trading volume of 8,282,988 shares. Office Depot has a 1-year low of $3.01 and a 1-year high of $6.26. The firm’s 50-day moving average price is $5.72 and its 200-day moving average price is $5.02. The stock has a market cap of $3.16 billion, a price-to-earnings ratio of 5.51 and a beta of 2.98.

Office Depot (NASDAQ:ODP) last posted its quarterly earnings results on Tuesday, May 9th. The specialty retailer reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.04. The company had revenue of $2.68 billion for the quarter, compared to the consensus estimate of $2.71 billion. Office Depot had a return on equity of 13.39% and a net margin of 3.93%. The firm’s quarterly revenue was down 7.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.10 EPS. Analysts forecast that Office Depot will post $0.53 earnings per share for the current year.

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In other news, insider Michael R. Allison sold 66,217 shares of the stock in a transaction on Tuesday, May 16th. The stock was sold at an average price of $5.08, for a total transaction of $336,382.36. Following the transaction, the insider now directly owns 763,691 shares of the company’s stock, valued at approximately $3,879,550.28. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 2.43% of the stock is owned by corporate insiders.

Institutional investors have recently added to or reduced their stakes in the stock. Eagle Global Advisors LLC purchased a new position in Office Depot during the second quarter valued at $103,000. Stratos Wealth Partners LTD. purchased a new position in Office Depot during the second quarter valued at $109,000. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in Office Depot by 11.8% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 19,425 shares of the specialty retailer’s stock valued at $110,000 after buying an additional 2,046 shares during the period. Nomura Asset Management Co. Ltd. raised its stake in Office Depot by 33.3% in the first quarter. Nomura Asset Management Co. Ltd. now owns 21,600 shares of the specialty retailer’s stock valued at $101,000 after buying an additional 5,400 shares during the period. Finally, Victory Capital Management Inc. raised its stake in Office Depot by 17.6% in the second quarter. Victory Capital Management Inc. now owns 23,141 shares of the specialty retailer’s stock valued at $131,000 after buying an additional 3,469 shares during the period. 93.46% of the stock is currently owned by hedge funds and other institutional investors.

About Office Depot

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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Analyst Recommendations for Office Depot (NASDAQ:ODP)

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