Office Depot Inc (ODP) Recalls 300,000 Executive Chairs Due to Falling Hazard


Today Office Depot Inc (NASDAQ:ODP) along with the United States Consumer Product Safety Commission have recalled approximately 300,000 Crawley II Executive Chairs on a possible fall hazard. The company claims that a weak seat plate weld can break, leading to users falling from the seat. The chairs, which are being recalled, have Office Depot SKU number 493822 or OfficeMax item number 23324118 and “US REG. No. PA 25917(CN)” printed on a label under the cushion of the seat.

Thus far Office Depot Inc (NASDAQ:ODP) has received eight different reports of the seat plate weld breaking or cracking, but luckily their have been no reported injuries to date. The chairs, which were sold between the dates of October 2012 and September 2015 for around $140, were manufactured in China. Office Depot Inc (NASDAQ:ODP) urges customers to return to the store they purchased the chair from in order to receive a new seat plate which they can install themselves.

The stock is 0.00% or $0 following the news, hitting $5.71 per share. It is down 38.73% since June 3, 2015 and is downtrending. It has underperformed the S&P500 by 34.04%.

From a total of 4 analysts covering Office Depot (NASDAQ:ODP) stock, 3 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $11.0 while the lowest target price is $7.5. The mean of all analyst targets is $9.25 which is 62.00% above today’s ($5.71) stock price. Office Depot was the topic of 4 analyst reports since September 8, 2015 according to the firm StockzIntelligence Inc. Bank of America reinitiated shares on December 11 with a “Buy” rating. Telsey Advisory Group maintained ODP stock in a recent report from December 8 with a “Outperform” rating.

The institutional sentiment increased to 0.91 in Q2 2015. It’s up 0.03, from 0.88 in 2015Q2. The ratio is positive, as 41 funds sold all their Office Depot Inc shares they owned while 96 reduced their positions. 31 funds bought stakes while 93 increased their total positions. Institutions now own 425.12 million shares which is 9.55% less than the previous share count of 469.99 million in 2015Q2.

Starboard Value Lp holds 6.41% of its total portfolio in Office Depot Inc, equating to 44.74 million shares. Chesapeake Partners Management Co Inc Md owns 9.91 million shares representing 3.32% of their total US portfolio. Moreover, Canyon Capital Advisors Llc has 2.48% of their total portfolio invested in the company, equating to 14.08 million shares. The Pennsylvania-based Swarthmore Group Inc has a total of 2.39% of their portfolio invested in the stock. Royal Capital Management Llc, a New York-based fund reported 134,500 shares owned.

Office Depot, Inc. is a supplier of office services and products. The company has a market cap of $3.16 billion. The Firm sells services and products to clients through three divisions: North American Retail Division, North American Business Solutions Division and International Division. It currently has negative earnings. The North American Retail Division sells an assortment of merchandise through its chain of office supply stores throughout the United States, including Puerto Rico and the U.S.