ODP (ODP) stock was up on Tuesday after the parent company of Office Depot and Office Max announced a deal with an affiliate of Atlas Holdings. Under the terms of this deal, ODP will be acquired for $28 per share, which represents a 34% premium to the stock’s closing price before the agreement was announced. This brings the total value of the deal to about $1 billion.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
ODP noted that this deal will result in it going private. When that happens, shares of ODP will no longer trade on the Nasdaq exchange. This agreement has the support of the company’s Board of Directors and is set to close before the end of 2025. It still needs approval from ODP shareholders and to complete customary closing conditions.
Gerry Smith, CEO of ODP, said, “Atlas brings an understanding of our industry, along with the operational expertise, resources and track record of supporting its companies that will fast forward our B2B growth initiatives and strengthen our position as a trusted partner to our customers.”
ODP Stock Movement Today
ODP stock was up 0.45% on Tuesday and underwent a roughly 33% rally when the Atlas Holdings news was announced yesterday. Investors will note that the shares are up 22.34% year-to-date but have fallen 5.56% over the past 12 months.
Noble Financial analyst Joe Gomes downgraded ODP stock to a Hold rating today, with a $28 price target, suggesting a potential 0.7% upside for the shares.
Is ODP Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for ODP is Moderate Buy, based on one Buy rating and one Hold rating over the past three months. With that comes a $35 price target, suggesting a potential 25.88% upside for the shares.
