The ODP Co. (NASDAQ:ODP - Get Free Report) shares traded down 15% on Wednesday following a dissappointing earnings announcement. The company traded as low as $43.00 and last traded at $44.11. 216,679 shares traded hands during mid-day trading, a decline of 28% from the average session volume of 301,305 shares. The stock had previously closed at $51.90.
The specialty retailer reported $1.05 earnings per share for the quarter, missing analysts' consensus estimates of $1.64 by ($0.59). ODP had a return on equity of 19.45% and a net margin of 1.77%. The firm had revenue of $1.87 billion during the quarter, compared to analyst estimates of $1.96 billion. During the same quarter in the previous year, the firm posted $1.78 earnings per share. ODP's quarterly revenue was down 11.2% compared to the same quarter last year.
ODP declared that its board has approved a stock buyback plan on Wednesday, February 28th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the specialty retailer to purchase up to 48.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board of directors believes its shares are undervalued.
Wall Street Analyst Weigh In
Several equities analysts recently commented on the stock. StockNews.com upgraded shares of ODP from a "hold" rating to a "buy" rating in a research note on Tuesday, March 12th. TheStreet cut shares of ODP from a "b-" rating to a "c+" rating in a research note on Wednesday, February 28th. One equities research analyst has rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, ODP has an average rating of "Moderate Buy" and an average target price of $62.00.
View Our Latest Stock Analysis on ODP
Insiders Place Their Bets
In other ODP news, CFO Diego Anthony Scaglione sold 25,000 shares of the stock in a transaction dated Friday, March 1st. The shares were sold at an average price of $55.00, for a total transaction of $1,375,000.00. Following the sale, the chief financial officer now owns 96,104 shares of the company's stock, valued at approximately $5,285,720. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 3.60% of the company's stock.
Institutional Inflows and Outflows
Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its position in shares of ODP by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 3,965,947 shares of the specialty retailer's stock valued at $223,283,000 after acquiring an additional 13,870 shares during the period. Greenlight Capital Inc. raised its position in shares of ODP by 8.3% in the 4th quarter. Greenlight Capital Inc. now owns 1,748,100 shares of the specialty retailer's stock valued at $98,418,000 after acquiring an additional 133,750 shares during the period. Pacer Advisors Inc. raised its position in shares of ODP by 49.9% in the 4th quarter. Pacer Advisors Inc. now owns 1,481,692 shares of the specialty retailer's stock valued at $83,419,000 after acquiring an additional 493,233 shares during the period. Hotchkis & Wiley Capital Management LLC raised its position in shares of ODP by 15.7% in the 4th quarter. Hotchkis & Wiley Capital Management LLC now owns 1,207,623 shares of the specialty retailer's stock valued at $67,989,000 after acquiring an additional 164,020 shares during the period. Finally, American Century Companies Inc. raised its holdings in ODP by 11.7% during the 3rd quarter. American Century Companies Inc. now owns 524,628 shares of the specialty retailer's stock worth $24,212,000 after buying an additional 54,836 shares during the period. 99.56% of the stock is currently owned by institutional investors and hedge funds.
ODP Stock Down 16.7 %
The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.54 and a current ratio of 0.99. The stock has a market capitalization of $1.58 billion, a price-to-earnings ratio of 12.79, a P/E/G ratio of 0.65 and a beta of 1.68. The firm's fifty day simple moving average is $51.35 and its 200 day simple moving average is $50.69.
About ODP
(
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The ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates through four divisions: ODP Business Solutions, Office Depot, Veyer, and Varis.
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