The investor increased its stake in Office Depot to about 10% from its previous stake of 8.6%, according to the Wall Street Journal.
Starboard also disclosed that it purchased a 6% stake in Office Depot competitor Staples (SPLS) , giving it a stake in the only two remaining retailers that specialize in office supplies.
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The investor didn't announce any changes it may seek from the two companies in its filings. The Wall Street Journal noted that the office supply retail industry have been under pressure to consolidate in order to better compete with retailers such as Amazon.com (AMZN) , Walmart (WMT) , and Target (TGT) .
TheStreet Ratings team rates OFFICE DEPOT INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate OFFICE DEPOT INC (ODP) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."