Omnicom Group (NYSE:OMC) Upgraded to Hold at Zacks Research

Key Points

• Zacks Research upgraded Omnicom Group from “strong sell” to “hold.” The broader analyst consensus is also “Hold,” with four Buy, six Hold and one Sell rating and an average price target of $99.
• Omnicom shares opened at $74.05, below their 50-day average of $82.19 and 200-day average of $78.30. The stock has traded between $66.33 and $89.57 over the past year.
• The company’s latest quarterly revenue rose 63.4% year over year to $6.56 billion and exceeded estimates, although EPS of $2.65 fell slightly short of consensus. Institutional investors own approximately 91.97% of the stock.

Omnicom Group (NYSE:OMC - Get Free Report) was upgraded by Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued on Monday, Zacks reports.

A number of other brokerages have also recently commented on OMC. The Goldman Sachs Group started coverage on Omnicom Group in a report on Wednesday, June 3rd. They issued a "buy" rating and a $146.00 target price for the company. Wells Fargo & Company raised their price target on Omnicom Group from $91.00 to $93.00 and gave the stock an "overweight" rating in a research report on Thursday, July 30th. Argus raised shares of Omnicom Group to a "hold" rating in a research note on Monday, September 14th. Weiss Ratings upgraded shares of Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 30th. Finally, Citigroup lowered their target price on shares of Omnicom Group from $105.00 to $100.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $99.00.

Omnicom Group Price Performance

OMC stock opened at $74.05 on Monday. The company has a fifty day simple moving average of $82.19 and a two-hundred day simple moving average of $78.30. Omnicom Group has a 52 week low of $66.33 and a 52 week high of $89.57. The company has a quick ratio of 0.78, a current ratio of 0.92 and a debt-to-equity ratio of 0.97. The firm has a market capitalization of $20.32 billion, a P/E ratio of 63.84, a price-to-earnings-growth ratio of 0.63 and a beta of 0.65.

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

Insider Buying and Selling at Omnicom Group

In related news, Director Linda Rice sold 1,385 shares of the company's stock in a transaction dated Monday, August 24th. The shares were 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 of the company's stock, valued at $1,039,826.87. This represents a 10.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Omnicom Group

Large investors have recently modified their holdings of the business. BlackRock Inc. purchased a new position in Omnicom Group during the second quarter valued at approximately $2,082,476,000. Bank of New York Mellon Corp purchased a new stake in Omnicom Group during the second quarter worth $914,156,000. Goldman Sachs Group Inc. boosted its position in Omnicom Group by 89.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 6,106,022 shares of the business services provider's stock valued at $493,061,000 after acquiring an additional 2,883,520 shares in the last quarter. Capital Research Global Investors boosted its position in Omnicom Group by 60.1% during the 4th quarter. Capital Research Global Investors now owns 4,691,101 shares of the business services provider's stock valued at $378,806,000 after acquiring an additional 1,760,469 shares in the last quarter. Finally, Nykredit A S purchased a new position in shares of Omnicom Group in the 2nd quarter valued at $126,937,000. Institutional investors own 91.97% of the company's stock.

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 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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