Hopefully you got into Office Depot, Inc. (NASDAQ:ODP) early, as today the stock is trading 3.33% or 0.05 points up from last closing price of $1.5, reaching $1.55 at last check. The ODP share price has risen in 2 of the last 5 days and is down -26.83% over the past week. It will be exciting to see whether the stock manages to continue increasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -1,716,285 shares, and in total 4.574 million shares valued at $7.09 million were seen changing hands compared with 6.291 million shares valued at $9.436 million recorded at the previous session. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes in ODP stock for the next couple of days.
Office Depot, Inc. (ODP) shares have notched a 3-month decline of about -26.83%, but has still tumbled -41.86% year to date. By comparison, the stock sank -50.5% over the past 12 months, while it slipped -30.56% over the 1 month. The company’s market cap is around $852.93M, with its short interest ratio standing at 6.11%.
In the current trading session for ODP, the stock witnessed two major price actions, it rose to a high of $1.635 and was down as much as $1.48 at one point. The high recorded is very low when compared to their 52-week high which is $1.5. The 52-week high is now at -59.16 distance from current price. Their recent low of $3.82 represents a 4% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for ODP is $2.13, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of Office Depot, Inc. earned $0.13 per share in the trailing 12 months and has a P/E ratio of 11.92. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 34.62 and lower compared to the sector’s average of 18.75. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. ODP also has P/S multiple of 0.08. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 1.95x.
The company recorded an interesting insider purchase transaction by the Chairman on Jun 04, 2018. A Securities and Exchanges Commission filings show that Joseph Vassalluzzo bought a total of 58,800 ODP shares that day for a sum of around $149,940. The filings show that the insider stake has now grown to 143,834 shares, currently worth $222,943. Office Depot, Inc. (ODP) insiders have acquired 356,295 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to shares. In total, individual insiders traded 356,295 shares in the business, which makes up 11.608% of 3,069,496 shares that were traded over a year. In the past 12 months, insiders have purchased 2,492,356 shares while the seller parted with 577,140 shares.
ODP‘s last price was down -40.98% as compared to the average trading price of 50 days recorded at $2.63 while enlarging the period to 200 trading days, the average closing price was $1.95. At present, there are 568.62 million in the total number of common shares owned by the public and among those 536.13 million shares have been available to trade. The percentage of shares being held by the company management was 1.4% while institutions stake was 94.1%. The company has generated positive returns on equity over the last 12 months (1.4%). It managed to keep its gross profit margin at 23.1% over the past 12 months.
When assessing the full upside of the ODP stock, there is another set of technicals that should be looked into and considered. Its -17.49% decline from moving average of $1.88 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 2.37 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.
Most of the analysts surveyed by Thomson/First Call think quite highly of Office Depot, Inc. — 0 analysts rate the stock as a buy with another 0 rating it strong buy. There are 1 analysts who maintain a hold rating for the stock, with 1 giving it a sell rating. Analysts arrived at a 12-month price target of $3 on shares of Office Depot, Inc. (NASDAQ:ODP), which corresponds to 93.55% upside potential than its current market price of $1.55 and implies potential despite the recent advance in the price. However, their current target price has fallen from $3 a month ago and is down handily from the consensus target of $3 a quarter ago.
In the last five years, the EPS of the company has been roughly 21.1%. Though the percentage looks encouraging, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 11.1%. The revenue of the company has retreated at an average annualized rate of about -0.4 over the last five years. The company recently recorded a drop of -1.5%, but this figure is rather unattractive.
Let’s briefly check the hedge fund interest towards ODP stock. Grantham Mayo Van Otterloo & Co. LLC added position in the company after it grew 17% or 2,818,974 shares of its common stock. The hedge fund now owns 3,298,200 shares worth $5,112,210, SEC documents show. Commonwealth Bank of Australia shored up assets in the stock as 881329.2 shares have been purchased, increasing its stake by 12.7% to 993,258 shares which are currently valued at $1,539,550. In addition, Northern Trust Corp recently reported that it now owns 11,719,859 shares making a total of $18,165,781 based on the recent price. This refelects a change of 1.1% in their ownership.