Will Office Depot, Inc. (NASDAQ:ODP) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed lower on 12 February. The shares dropped -0.03 points or -0.94 percent at $3.15 with a heavy trade volume of 5.183 million shares. After opening the session at $3.19, the shares went as high as $3.23 and as low as $3.135, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.75 billion and now has 554.27 million shares outstanding. Office Depot, Inc. (ODP) stock has gained 7.14 percent of market value in 21 trading days.
ODP stock has a trailing 3-year beta of 2.64, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.02 a share in the trailing twelve months. The stock’s value has surged 22.09 percent year to date (YTD) against a rise of 1.61 percent in 12 month’s time. The company’s shares still trade -13.22 percent away from its 1-year high of $3.63 and 57.5 percent up from 52-week low of $2.00. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.
Office Depot, Inc. (ODP) will probably climb 8.89 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $4 price as 12-month high target. This represents a whopping 26.98 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $4, which represents a return potential of 26.98 percent when compared to the closing price of the stock of $3.15 on Tuesday, February 12. The lowest price target for the stock is $2.3 — slightly more than -26.98 percent from ODP’s current share price.
History has shown that shares in Office Depot, Inc. have gone down on 19 different earnings reaction days and are predicted to add 0.08 percent when the company reports upcoming earnings. Investors will get their next glimpse of ODP’s Q4 earnings on February 28. Analysts are forecasting revenue to climb 3.9 percent to $2.68B in the fiscal fourth quarter, while earnings are seen soaring by nearly 0 percent to $0.08 per share. It earned $0.13 per share, better than the $0.12, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.89B, better than the $2.83B analysts expected. Earnings are estimated to increase by -88.4 percent this year, 16.67 percent next year and continue to increase by -2.2 percent annually for the next 5 years.
Let’s take a look at some insider activity at Office Depot, Inc. (NASDAQ:ODP) and see the pattern. The earliest insider trade took place on 06/04/2018. Vassalluzzo Joseph gathered a total of 58.8 thousand shares of company at average share price of $2.55. The total for the purchase was set at $149.94 thousand. After this transaction, the Chairman of the Board account balance stood at 143.83 thousand shares. The stock grew 23.53 percent since that insider purchase. On 05/31/2018, Travis Nigel, Director, purchased 10 thousand shares at a price per share of $2.39. This added 23.9 thousand shares to the insider’s fortune and the stock saw a 31.8 percent rally in value since the news became public. This transaction left 324.4 thousand shares in the Director account.
On 05/30/2018, EVP & CFO Lower Joseph T performed a purchase transaction worth $47.8 thousand. This purchase at $2.39 each has added 20 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 31.8 percent increase since the transaction was reported. The insider now is left with 872.55 thousand shares remaining in the account. Rabinovitch Michael, who performs the Sr Vice President & Controller job, sold 1.35 thousand shares for $4.64 thousand. The disposal occurred on 01/08/2018 was priced at $3.43 per share. The share price plunged -8.16 percent since the reporting date. Rabinovitch Michael now left with a stake of 83.84 thousand ODP stock worth $264.09 thousand after the insider selling.
The stock is currently hovering around the first support level of $3.11. Below this, the next support is placed in the zone of $3.07. Till the time, the ODP stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 60.65 on daily chart, which may remain a cause for concern. If the price breaks below $3.07 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $3.21 mark may result into a pull-back move towards $3.27 level.
Further, it is sporting a 0.16 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.23. 23.4 percent is the gross profit margin for Office Depot, Inc. and operating margin sits at 2.6 percent. Along with this, the net profit margin is 0.6 percent.