ODP (NASDAQ:ODP) Shares Gap Up - Still a Buy?

Key Points

• ODP Corporation's shares saw a significant increase, opening at $27.73 after closing at $20.82, with over 2 million shares traded.
• Recent analyst ratings reflect a consensus "Hold" rating with a price target adjustment to $19.00, indicating cautious optimism about the stock's potential.
• The company reported a quarterly earnings per share (EPS) of $0.51, exceeding expectations but showing a revenue decline of 7.6% year-over-year.

The ODP Corporation (NASDAQ:ODP - Get Free Report)'s share price gapped up prior to trading on Monday . The stock had previously closed at $20.82, but opened at $27.73. ODP shares last traded at $27.85, with a volume of 2,091,541 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on ODP. UBS Group upped their price target on shares of ODP from $17.00 to $19.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Wall Street Zen lowered shares of ODP from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. One equities research analyst has rated the stock with a Hold rating, According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $19.00.

ODP Stock Performance

The company has a market cap of $835.47 million, a PE ratio of 42.08, a P/E/G ratio of 0.52 and a beta of 1.39. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.45 and a current ratio of 0.94. The stock's 50-day simple moving average is $19.74 and its 200 day simple moving average is $17.22.

ODP (NASDAQ:ODP - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The specialty retailer reported $0.51 EPS for the quarter, topping analysts' consensus estimates of $0.33 by $0.18. ODP had a net margin of 0.39% and a return on equity of 11.22%. The company had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.59 billion. During the same quarter in the prior year, the firm earned $0.56 EPS. ODP's quarterly revenue was down 7.6% on a year-over-year basis. As a group, equities analysts anticipate that The ODP Corporation will post 3.26 EPS for the current year.

Institutional Investors Weigh In On ODP

A number of large investors have recently added to or reduced their stakes in the business. Deutsche Bank AG lifted its holdings in ODP by 50.5% in the 4th quarter. Deutsche Bank AG now owns 30,450 shares of the specialty retailer's stock valued at $692,000 after purchasing an additional 10,219 shares in the last quarter. Millennium Management LLC raised its holdings in ODP by 107.7% in the fourth quarter. Millennium Management LLC now owns 90,234 shares of the specialty retailer's stock valued at $2,052,000 after buying an additional 46,800 shares during the period. ProShare Advisors LLC raised its holdings in ODP by 34.9% in the fourth quarter. ProShare Advisors LLC now owns 9,799 shares of the specialty retailer's stock valued at $223,000 after buying an additional 2,536 shares during the period. Two Sigma Investments LP purchased a new position in ODP in the fourth quarter valued at approximately $620,000. Finally, Two Sigma Advisers LP raised its holdings in ODP by 81.8% in the fourth quarter. Two Sigma Advisers LP now owns 12,444 shares of the specialty retailer's stock valued at $283,000 after buying an additional 5,600 shares during the period. 99.56% of the stock is owned by institutional investors and hedge funds.

ODP Company Profile

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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