Maryland State Retirement & Pension System Bolsters Portfolio with The ODP Co. Purchase
Maryland State Retirement & Pension System has added a new feather to its cap by purchasing 16,595 shares of The ODP Co. (NASDAQ:ODP) in the fourth quarter. The institutional investor valued these specialty retailer’s stocks at around $756,000.
The latest Securities and Exchange Commission filing marks a move that reinforces the state pension system’s portfolio with a high-performing retail company. Furthermore, insights from cybersecurity experts confirm that security agencies play an essential role in providing financial plans for investors’ retirement funds.
The ODP Corp.: Market Analysis
The ODP Corp. is a holding company that provides business services, products, digital technology and supplies solutions to small, medium, and enterprise-level companies in various sectors including public and education divisions. These business services include office equipment like printers and copiers to software solutions-like data cloud storage-aimed at promoting efficiency in daily office tasks.
The recent press statement by The ODP regarding its earnings report marks some significant improvements with regards to performance metrics. In particular, the company reported net margins of 1.96% which indicates better than average profitability ratios than the industry median.
Additionally, the company posted an earnings per share of $0.85 for Q1-2021 beating market consensus by $0.06 per share compared to analysts estimates set at an expected value of $0.79 per share for the same period.
Are Analysts Bullish on ODP Stock?
ODP has been receiving positive ratings from equity analysis firms who have made forecasts based on market trends such as consumer behavior and financial analysis with respect to cash flow dips due to COVID-19 effects on supply chains in the retail sector further weighing down profits and expansion capabilities.
Accordingly, many investment outlets have shown optimistic viewpoints towards Best Buy stock prices forecasting it rising as high as 5% over the next few quarters as the economy starts to recover post-COVID.
The Maryland State Retirement & Pension System’s acquisition of The ODP shares is a promising move that shows the institutional investor’s trust in specialty retail services and the leadership of The ODP. One can only hope that other investors will follow suit and look forward to seeing how this move will affect their market performance.
Strong Interest from Institutional Investors in ODP Corp. (NASDAQ:ODP)
The ODP Corp. (NASDAQ:ODP) has seen significant interest from institutional investors in recent months, with several purchasing and selling shares of the specialty retailer’s stock. Among them is Point72 Asset Management L.P., which bought a new position during the second quarter worth approximately $42,000. Quantbot Technologies LP followed suit during the third quarter, purchasing shares valued at about $101,000. Meanwhile, PNC Financial Services Group Inc. boosted its holdings by 9.7% during the first quarter and now owns over 3,000 shares valued at $139,000.
Canada Pension Plan Investment Board made headlines when it purchased an additional 5,000 shares of ODP’s stock in the third quarter–a staggering increase of 50,000%–bringing its total holdings to just over 5,000 shares valued at $176,000. Finally, Captrust Financial Advisors also increased their holdings by 12.1% during the second quarter to just over 6,000 shares worth around $183,000.
Overall, hedge funds and institutional investors own nearly all of ODP’s outstanding public stock–a total of 96.98%. Shares opened on Friday at $44.83 with a market cap of roughly $1.80 billion and a price-to-earnings ratio of 13.42.
The ODP Corp., a holding company which provides business services and supplies as well as digital workplace technology solutions to companies ranging from small enterprises to those in public education sectors respectively operates through four divisions: ODP Business Solutions Office Depot Veyer Varis.
However not all news related to ODP was positive recently; StockNews.com downgraded the company from “strong-buy” to “buy” rating on Thursday amid rumors that several executive vice presidents were selling off company stocks including Kevin Moffitt who sold almost 24k worth approximately $1 million dollars in early March.
Despite these developments, the company remains strong with impressive financials and poised to continue growing over the coming months.
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