ODP (NASDAQ:ODP) Trading Down 15% on Disappointing Earnings

The ODP Co. (NASDAQ:ODP)’s share price fell 15% during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. 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 (EPS) for the quarter, missing the consensus estimate of $1.64 by ($0.59). The company had revenue of $1.87 billion for the quarter, compared to analyst estimates of $1.96 billion. ODP had a net margin of 1.77% and a return on equity of 19.45%. The business’s revenue was down 11.2% compared to the same quarter last year. During the same quarter last year, the company earned $1.78 EPS.

ODP declared that its board has initiated a stock repurchase plan on Wednesday, February 28th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the specialty retailer to purchase up to 48.7% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several analysts have weighed in on ODP shares. StockNews.com upgraded ODP from a “hold” rating to a “buy” rating in a research note on Tuesday, March 12th. TheStreet downgraded shares of ODP from a “b-” rating to a “c+” rating in a report on Wednesday, February 28th. One research analyst has rated the stock with a hold rating and three have assigned a buy rating to the company. According to MarketBeat, ODP presently has an average rating of “Moderate Buy” and a consensus price target of $62.00.

Insider Activity

In related news, CFO Diego Anthony Scaglione sold 25,000 shares of the firm’s stock in a transaction dated Friday, March 1st. The stock was 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 directly owns 96,104 shares of the company’s stock, valued at $5,285,720. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 3.60% of the company’s stock.

Institutional Trading of ODP

Several institutional investors have recently bought and sold shares of ODP. Gladius Capital Management LP raised its position in shares of ODP by 94.6% during the 3rd quarter. Gladius Capital Management LP now owns 722 shares of the specialty retailer’s stock worth $33,000 after purchasing an additional 351 shares during the last quarter. Headlands Technologies LLC purchased a new position in shares of ODP in the third quarter valued at approximately $34,000. Quest Partners LLC purchased a new position in shares of ODP in the fourth quarter valued at approximately $63,000. Los Angeles Capital Management LLC acquired a new stake in shares of ODP in the fourth quarter worth approximately $201,000. Finally, Counterpoint Mutual Funds LLC purchased a new stake in shares of ODP during the fourth quarter worth approximately $211,000. 99.56% of the stock is owned by institutional investors and hedge funds.

ODP Trading Down 0.0 %

The company has a 50 day moving average of $51.09 and a 200 day moving average of $50.64. 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 12.78, a P/E/G ratio of 0.65 and a beta of 1.68.

About ODP

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.