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

The ODP Co. (NASDAQ:ODP) fell 15% during 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 changed hands during 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). The firm had revenue of $1.87 billion for the quarter, compared to the consensus estimate of $1.96 billion. ODP had a return on equity of 19.45% and a net margin of 1.77%. ODP’s quarterly revenue was down 11.2% on a year-over-year basis. During the same period in the prior year, the business earned $1.78 EPS.

ODP announced that its Board of Directors has approved a stock repurchase plan on Wednesday, February 28th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the specialty retailer to reacquire up to 48.7% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

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

Insider Buying and Selling at ODP

In other news, CFO Diego Anthony Scaglione sold 25,000 shares of ODP 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 completion of the transaction, the chief financial officer now directly owns 96,104 shares in the company, valued at $5,285,720. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 3.60% of the company’s stock.

Institutional Investors Weigh In On ODP

Several institutional investors have recently bought and sold shares of ODP. Gladius Capital Management LP increased its position in shares of ODP by 94.6% during the third quarter. Gladius Capital Management LP now owns 722 shares of the specialty retailer’s stock valued at $33,000 after acquiring an additional 351 shares during the last quarter. Headlands Technologies LLC purchased a new stake in shares of ODP during the 3rd quarter valued at $34,000. Quest Partners LLC purchased a new position in shares of ODP in the 4th quarter worth about $63,000. Los Angeles Capital Management LLC bought a new position in ODP during the fourth quarter valued at about $201,000. Finally, Campbell & CO Investment Adviser LLC purchased a new stake in ODP during the third quarter worth about $207,000. Institutional investors own 99.56% of the company’s stock.

ODP Trading Down 16.7 %

The company has a quick ratio of 0.54, a current ratio of 0.99 and a debt-to-equity ratio of 0.15. The firm has a market cap of $1.58 billion, a P/E ratio of 12.79, a price-to-earnings-growth ratio of 0.65 and a beta of 1.68. The firm’s 50-day simple moving average is $51.35 and its 200 day simple moving average is $50.69.

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.