Office Depot (NASDAQ:ODP) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Tuesday.

According to Zacks, “Persistent weakness in the office products sector, stiff competition, loss of customers in Business Solutions Division and lower traffic count have hurt Office Depot that has underperformed the industry so far in 2017. We note both the top and bottom lines continued to decline year over year during the third quarter as well. Further, after assessing the impact of recent hurricanes, soft sales during the back to school period, temporary rise in the supply chain costs and investments to catapult into a services-driven company, Office Depot trimmed its full year adjusted operating income view. Nevertheless, the company is concentrating on business operating model, growth prospects, cost structure and omni-channel capabilities. Management expects total sales to be lower in 2017 versus 2016 due to store closures, tough market conditions and losses of contract customers. However, the rate of decline is likely to decelerate in the final quarter.”

A number of other research analysts have also weighed in on the company. J P Morgan Chase & Co lowered Office Depot from a “neutral” rating to an “underweight” rating in a report on Monday, October 30th. ValuEngine lowered Office Depot from a “strong-buy” rating to a “buy” rating in a report on Friday, September 1st. BidaskClub lowered Office Depot from a “hold” rating to a “sell” rating in a report on Friday, September 22nd. Bank of America reissued a “buy” rating and issued a $6.00 target price on shares of Office Depot in a report on Tuesday, September 5th. Finally, Jefferies Group reissued a “hold” rating and issued a $4.15 target price (down previously from $5.00) on shares of Office Depot in a report on Friday, October 6th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and two have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $5.08.

Office Depot (NASDAQ ODP) traded up $0.16 during trading on Tuesday, hitting $3.37. The stock had a trading volume of 6,112,600 shares, compared to its average volume of 5,815,387. Office Depot has a twelve month low of $2.97 and a twelve month high of $6.26. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.52 and a quick ratio of 0.93. The stock has a market capitalization of $1,656.74, a PE ratio of 6.83, a PEG ratio of 1.00 and a beta of 2.87.

Office Depot (NASDAQ:ODP) last released its quarterly earnings results on Thursday, November 9th. The specialty retailer reported $0.14 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.14. Office Depot had a return on equity of 12.86% and a net margin of 3.00%. The business had revenue of $2.62 billion during the quarter, compared to analysts’ expectations of $2.61 billion. During the same quarter in the prior year, the business earned $0.16 earnings per share. The company’s quarterly revenue was down 7.6% compared to the same quarter last year. sell-side analysts expect that Office Depot will post 0.44 EPS for the current fiscal year.

In related news, insider Michael R. Allison sold 360,000 shares of the stock in a transaction on Friday, October 13th. The stock was sold at an average price of $3.83, for a total transaction of $1,378,800.00. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.43% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Pacad Investment Ltd. lifted its position in Office Depot by 1,292.3% during the second quarter. Pacad Investment Ltd. now owns 18,100 shares of the specialty retailer’s stock worth $102,000 after buying an additional 16,800 shares during the period. Eagle Global Advisors LLC purchased a new position in shares of Office Depot in the 2nd quarter worth about $103,000. PNC Financial Services Group Inc. raised its holdings in shares of Office Depot by 13.4% in the 2nd quarter. PNC Financial Services Group Inc. now owns 18,514 shares of the specialty retailer’s stock worth $104,000 after purchasing an additional 2,187 shares during the period. Bayesian Capital Management LP purchased a new position in shares of Office Depot in the 2nd quarter worth about $105,000. Finally, Stratos Wealth Partners LTD. purchased a new position in shares of Office Depot in the 2nd quarter worth about $109,000. Hedge funds and other institutional investors own 93.29% of the company’s stock.

TRADEMARK VIOLATION NOTICE: This news story was originally posted by American Banking News and is the sole property of of American Banking News. If you are viewing this news story on another domain, it was illegally stolen and republished in violation of U.S. and international copyright and trademark legislation. The original version of this news story can be accessed at https://www.americanbankingnews.com/2017/12/05/office-depot-odp-lifted-to-hold-at-zacks-investment-research.html.

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.

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

Analyst Recommendations for Office Depot (NASDAQ:ODP)

Receive News & Ratings for Office Depot Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Office Depot Inc. and related companies with MarketBeat.com's FREE daily email newsletter.