Omnicom Group (NYSE:OMC) Stock Gets Price Target Cut from Barclays

Key Points

• Barclays cut Omnicom Group’s price target from $88 to $87 while maintaining an “equal weight” rating, implying 8.89% upside from the prior close.
• Analyst sentiment remains mixed: five firms rate the stock Buy, six Hold, and one Sell. The consensus rating is “Hold,” with an average target price of $100.67.
• Omnicom shares fell 3.4% to $79.89, despite the company beating quarterly expectations with adjusted EPS of $2.73 and revenue of $6.42 billion, up 59.1% year over year.

Omnicom Group (NYSE:OMC - Get Free Report) had its price objective decreased by analysts at Barclays from $88.00 to $87.00 in a report released on Monday, Benzinga reports. The firm currently has an "equal weight" rating on the business services provider's stock. Barclays's price target indicates a potential upside of 8.89% from the stock's previous close.

Several other equities research analysts have also issued reports on the stock. Weiss Ratings raised shares of Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 30th. Wells Fargo & Company raised their price objective on Omnicom Group from $93.00 to $97.00 and gave the company an "overweight" rating in a research report on Friday. Morgan Stanley boosted their price objective on Omnicom Group from $83.00 to $85.00 and gave the stock an "equal weight" rating in a research note on Friday. Citigroup decreased their target price on Omnicom Group from $105.00 to $100.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Finally, JPMorgan Chase & Co. lowered their target price on Omnicom Group from $115.00 to $111.00 and set an "overweight" rating for the company in a research note on Friday. Five equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $100.67.

Omnicom Group Trading Down 3.4%

NYSE:OMC traded down $2.79 on Monday, reaching $79.89. The stock had a trading volume of 508,609 shares, compared to its average volume of 4,016,827. Omnicom Group has a 12-month low of $66.33 and a 12-month high of $89.57. The company has a market cap of $21.92 billion, a price-to-earnings ratio of 44.60, a P/E/G ratio of 0.71 and a beta of 0.68. The firm's fifty day moving average is $80.43 and its two-hundred day moving average is $78.54. The company has a debt-to-equity ratio of 0.97, a current ratio of 0.92 and a quick ratio of 0.78.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The business services provider reported $2.73 EPS for the quarter, beating analysts' consensus estimates of $2.67 by $0.06. Omnicom Group had a return on equity of 24.29% and a net margin of 2.85%. The business had revenue of $6.42 billion during the quarter, compared to the consensus estimate of $6.21 billion. During the same quarter in the previous year, the business earned $2.24 earnings per share. The business's revenue for the quarter was up 59.1% on a year-over-year basis. Equities analysts expect that Omnicom Group will post 10.33 EPS for the current fiscal year.

Insider Activity at Omnicom Group

In other Omnicom Group news, Director Linda Rice sold 1,385 shares of the company's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $88.73, for a total transaction of $122,891.05. Following the sale, the director owned 11,719 shares in the company, valued at $1,039,826.87. This represents a 10.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders own 1.20% of the company's stock.

Institutional Trading of Omnicom Group

A number of institutional investors and hedge funds have recently made changes to their positions in OMC. BlackRock Inc. purchased a new stake in Omnicom Group in the 2nd quarter worth approximately $2,082,476,000. Bank of New York Mellon Corp purchased a new position in shares of Omnicom Group during the 2nd quarter valued at $914,156,000. Nykredit A S purchased a new position in shares of Omnicom Group during the 2nd quarter valued at $126,937,000. Pacer Advisors Inc. increased its stake in shares of Omnicom Group by 116.2% in the first quarter. Pacer Advisors Inc. now owns 2,847,575 shares of the business services provider's stock worth $214,451,000 after acquiring an additional 1,530,743 shares during the last quarter. Finally, Deutsche Bank AG acquired a new position in shares of Omnicom Group in the second quarter worth $105,402,000. 91.97% of the stock is currently owned by institutional investors and hedge funds.

Omnicom Group Company Profile

Omnicom Group Inc is a global marketing and communications company that provides advertising, media, branding, public relations, customer relationship management, and digital marketing services. The company works with organizations across industries to develop brand strategies, create content, manage media campaigns, and engage customers through traditional and digital channels.

Omnicom operates through a network of independently branded agencies, including BBDO Worldwide, DDB Worldwide, TBWA Worldwide, Omnicom Media Group, FleishmanHillard, Ketchum, Porter Novelli, RAPP, and several specialized healthcare, experiential, and data-driven marketing agencies.

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