Boston, MA 09/18/2014 (wallstreetpr) – Office Depot Inc (NYSE:ODP) announced plans to shift its stock listing base to NASDAQ Select Market Composite from the New York Stock Exchange (NYSE). The move is expected to happen later this month. The company expects to reap some gains from shifting its common stock listing base. NASDAQ may also have so much to celebrate from the development, especially because it involves a big business name – $3.13 billion global office supplies chain.
Office Depot Inc (NYSE:ODP) said that the move would not affect is ticker symbol as it will remain as “ODP”. The company said it plans to complete the switch to NASDAQ on September 25, but will start trading on the platform the following day. The ticker will be delisted from NYSE on September 25. The shifting in stock listing base may not mean much until investors get to understand the benefits behind it.
Benefits behind the move
The company said that moving to NASDAQ comes as a well-thought out strategy in the sense that they will have access to a wide range of cost-effective tools and services. The tools and services will help the company to attract more investors that can not only elevate its profile, but also inject money into the business.
Office Depot Inc (NYSE:ODP) joined forces with its rival OfficeMax in November 2013. The deal saw $1.2 billion changing hands, and a giant office supplier was created. The merger was important for the companies as they sought to cut their operating costs while the consolidation boosted their market share.
Shares up modestly
Since the completion of the merger and even more recently, several analysts have weighed in on Office Depot Inc (NYSE:ODP). Out of the 20 analysts covering the stock currently, 13 rates the stock a “hold” while six have a “buy” recommendation on it. That gives the stock an average “hold” rating and 12-month price target of $6.12. The stock is one the move, shares are up almost 9% so far this year despite the enormous challenges in the retail environment.