Office Depot, Inc. (NASDAQ:ODP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday.

According to Zacks, “Persistent weakness in the office products sector, stiff competition, loss of customers in Business Solutions Division and lower traffic count have been playing spoilsport for Office Depot. The company succumbed to a negative earnings surprise in second-quarter 2017, after three straight quarters of earnings beat, while sales also missed the Zacks Consensus Estimate for the 12th quarter in row. We note both the top and bottom lines declined year over year. Following the dismal show, the stock took a bearish path and has now underperformed the industry in the past one month. Nevertheless, Office Depot is concentrating on business operating model, growth prospects, cost structure, and omni-channel capabilities. 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.”

Other equities analysts also recently issued research reports about the company. BidaskClub upgraded Office Depot from a “hold” rating to a “buy” rating in a research report on Saturday, June 10th. Bank of America Corporation restated a “buy” rating on shares of Office Depot in a research report on Sunday. Deutsche Bank AG restated a “hold” rating and set a $5.00 target price (down previously from $5.75) on shares of Office Depot in a research report on Thursday. Loop Capital restated a “hold” rating and set a $5.00 target price on shares of Office Depot in a research report on Wednesday, July 12th. Finally, Oppenheimer Holdings, Inc. restated a “hold” rating on shares of Office Depot in a research report on Tuesday, May 9th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and one has given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $5.10.

Shares of Office Depot (NASDAQ ODP) traded up 1.288% during midday trading on Monday, reaching $4.325. The company’s stock had a trading volume of 4,415,304 shares. The company has a market capitalization of $2.24 billion, a price-to-earnings ratio of 5.602 and a beta of 2.98. Office Depot has a 52-week low of $3.01 and a 52-week high of $6.26. The stock has a 50 day moving average price of $5.67 and a 200-day moving average price of $5.04.

Office Depot (NASDAQ:ODP) last posted its earnings results on Wednesday, August 9th. The specialty retailer reported $0.06 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.09 by $0.03. The company had revenue of $2.36 billion for the quarter, compared to the consensus estimate of $2.44 billion. Office Depot had a return on equity of 13.97% and a net margin of 2.49%. Office Depot’s quarterly revenue was down 8.5% compared to the same quarter last year. During the same quarter last year, the business earned $0.06 EPS. Equities research analysts expect that Office Depot will post $0.51 EPS for the current year.

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In other Office Depot news, insider Michael R. Allison sold 66,217 shares of Office Depot stock in a transaction on Tuesday, May 16th. The stock was sold at an average price of $5.08, for a total value of $336,382.36. Following the completion of the transaction, the insider now owns 763,691 shares in the company, valued at approximately $3,879,550.28. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 2.43% of the company’s stock.

Institutional investors have recently modified their holdings of the stock. Nomura Asset Management Co. Ltd. increased its position in shares of 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 last quarter. Pacad Investment Ltd. increased its position in shares of Office Depot by 1,292.3% in the second quarter. Pacad Investment Ltd. now owns 18,100 shares of the specialty retailer’s stock valued at $102,000 after buying an additional 16,800 shares during the last quarter. Eagle Global Advisors LLC acquired a new position in shares of Office Depot during the second quarter valued at about $103,000. PNC Financial Services Group Inc. increased its position in shares of Office Depot by 13.4% in the second quarter. PNC Financial Services Group Inc. now owns 18,514 shares of the specialty retailer’s stock valued at $104,000 after buying an additional 2,187 shares during the last quarter. Finally, Bayesian Capital Management LP acquired a new position in shares of Office Depot during the second quarter valued at about $105,000. Hedge funds and other institutional investors own 93.33% of the company’s stock.

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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Analyst Recommendations for Office Depot (NASDAQ:ODP)

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