Office Depot Inc (NASDAQ:ODP) Big Market Mover

[InvestoPedia] Office Depot Inc (NASDAQ:ODP)(TREND ANALYSIS) Mega-mergers are not common in the office supply industry, but one is now in the works.

Last February shareholders gave the Office Depot, Inc. and Staples, Inc. $6.3 billion buyout offer a greenlight. Under the agreement Staples, the office supply behemoth, acquires all of the outstanding shares of Office Depot. Office Depot’s shareholders also liked the proposal with 99.5 percent of the votes cast in favor of the deal.

If the merger moves ahead and receives regulatory approval, it will be one of the largest mergers in office supply sector history. Staples (SPLS), is based in Framington, Mass. just outside of Boston. Office Depot (ODP), now known as Office Depot/Office Max after the companies merged in 2013, is based in Boca Raton, Fla. Staples and Office Depot are multinational companies with international offices and e-commerce capability.

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Office Depot Inc (NASDAQ:ODP) stock is currently trading 28.76% below its 52-week-high, 63.38% above its 52-week-low. The 1-year stock price history is in the range of $4.26 – $9.77. Office Depot Inc (ODP) has a price to book ratio of 2.55. ODP stock price has underperformed the Nasdaq by 18.7%. The Office Supplies company is currently valued at $3.82 billion and its share price closed the last trading session at $6.96. The stock has a 50-day moving average of $7.51 and a 200-day moving average of $8.62.

Office Depot Inc (ODP) current short interest stands at 21.94 million shares. It has increased by 26% from the same period of last month. Around 5% of the company’s shares, which are float, are short sold. With a 10-days average volume of 10.01 million shares, the number of days required to cover the short positions stand at 2.2 days.

The company is expected to announce next quarter earnings on November 03, at consensus estimate of $0.17. Office Depot Inc (ODP) reported last quarter earnings on August 04. The Office Supplies company announced earnings per share of $0.06 against a consensus Street estimate of $0.06, matching the average estimate. This corresponds to an increase of $0.08 compared to the same quarter of the previous fiscal year.

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There are currently fourteen analysts that cover Office Depot Inc stock. Of those fourteen, five have a Buy rating, nine have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $10.32.

A recent analyst activity consisted of B. Riley upgrading their Neutral rating to Buy on September 8. B. Riley set their price target at $11. This corresponds to a 58.05% upside from the last closing price. On the date of report, the stock closed at $7.64.

Telsey Advisory Group upgraded their Market Perform rating to Outperform on June 25. On the date of report, the stock closed at $8.86.

Another research firm was Jefferies who upgraded their Hold rating to Buy on April 30. On the date of report, the stock closed at $9.22.

Company profile

Office Depot, Inc. operates a chain of office product warehouse stores in North America, Europe, Asia and Central America. The Company sells branded merchandise and provides business services primarily to small and medium-sized businesses and the home office market.

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