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

Key Points

• Barclays cut Omnicom Group’s price target from $90 to $88 while maintaining an “equal weight” rating, implying 15.56% upside from the prior close.
• Analyst sentiment remains mixed but centers on “Hold”: MarketBeat reports four Buy ratings, six Holds and one Sell, with a consensus price target of $98.75.
• Omnicom shares closed at $76.15, while the company’s latest quarterly results showed revenue of $6.56 billion—above estimates—but EPS of $2.65, slightly below consensus.

Omnicom Group (NYSE:OMC - Get Free Report) had its target price dropped by equities research analysts at Barclays from $90.00 to $88.00 in a report issued on Friday, Benzinga reports. The firm presently has an "equal weight" rating on the business services provider's stock. Barclays's target price suggests a potential upside of 15.56% from the company's previous close.

A number of other analysts have also weighed in on the stock. Zacks Research raised shares of Omnicom Group from a "strong sell" rating to a "hold" rating in a report on Monday, September 28th. Citigroup lowered their price target on shares of Omnicom Group from $105.00 to $100.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Weiss Ratings upgraded Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 30th. Wells Fargo & Company upped their price target on shares of Omnicom Group from $91.00 to $93.00 and gave the stock an "overweight" rating in a report on Thursday, July 30th. Finally, Argus raised shares of Omnicom Group to a "hold" rating in a research note on Monday, September 14th. Four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $98.75.

Omnicom Group Stock Performance

NYSE OMC traded down $0.30 on Friday, reaching $76.15. 265,456 shares of the stock were exchanged, compared to its average volume of 4,093,314. The firm has a market capitalization of $20.89 billion, a PE ratio of 66.12, a PEG ratio of 0.63 and a beta of 0.68. The company's 50-day simple moving average is $81.31 and its two-hundred day simple moving average is $78.19. Omnicom Group has a one year low of $66.33 and a one year high of $89.57. The company has a current ratio of 0.92, a quick ratio of 0.78 and a debt-to-equity ratio of 0.97.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The business services provider reported $2.65 EPS for the quarter, missing the consensus estimate of $2.67 by ($0.02). The company had revenue of $6.56 billion during the quarter, compared to analyst estimates of $6.44 billion. Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. Omnicom Group's revenue for the quarter was up 63.4% compared to the same quarter last year. During the same period in the prior year, the business posted $2.05 EPS. Analysts expect that Omnicom Group will post 10.5 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Linda Rice sold 1,385 shares of Omnicom Group stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $88.73, for a total value of $122,891.05. Following the completion of the sale, the director directly owned 11,719 shares in the company, valued at $1,039,826.87. The trade was a 10.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 1.20% of the company's stock.

Institutional Trading of Omnicom Group

Several institutional investors and hedge funds have recently bought and sold shares of OMC. BlackRock Inc. acquired a new position in shares of Omnicom Group during the second quarter worth about $2,082,476,000. Bank of New York Mellon Corp purchased a new position in shares of Omnicom Group in the second quarter worth $914,156,000. First Eagle Investment Management LLC boosted its stake in Omnicom Group by 0.5% during the 2nd quarter. First Eagle Investment Management LLC now owns 7,343,209 shares of the business services provider's stock valued at $534,806,000 after purchasing an additional 40,096 shares during the last quarter. Baird Financial Group Inc. grew its holdings in Omnicom Group by 3.0% during the 2nd quarter. Baird Financial Group Inc. now owns 4,852,121 shares of the business services provider's stock valued at $353,380,000 after buying an additional 142,082 shares in the last quarter. Finally, Pacer Advisors Inc. increased its position in shares of Omnicom Group by 116.2% during 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 period. Institutional investors and hedge funds own 91.97% of the company's stock.

About Omnicom Group

Omnicom Group Inc is a global marketing and communications company that provides advertising, media, branding, public relations, customer relationship management and specialty marketing services. Through its network of agencies and specialized businesses, the company helps clients develop brands, engage customers and execute integrated marketing campaigns across traditional and digital channels.

Omnicom's services include creative advertising, strategic media planning and buying, digital marketing, data and precision marketing, public relations, healthcare communications, experiential marketing, commerce and consulting.

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