Citigroup Lowers Omnicom Group (NYSE:OMC) Price Target to $105.00

Key Points

• Citigroup cut its price target on Omnicom from $115 to $105 but kept a "buy" rating, with the new target implying about a 37.2% upside from the stock's previous close.
• The analyst consensus on Omnicom is mixed—four Buy, four Hold and one Sell—resulting in a consensus "Hold" rating and a consensus price target of $94.43.
• Omnicom recently beat quarterly estimates (EPS $1.90 vs. $1.84) and reported revenue up 69.2% year-over-year, and its board authorized a $5.0 billion share buyback program (up to 38.1% of shares).

Omnicom Group (NYSE:OMC - Get Free Report) had its target price dropped by Citigroup from $115.00 to $105.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a "buy" rating on the business services provider's stock. Citigroup's price target would suggest a potential upside of 37.20% from the company's previous close.

Several other equities research analysts also recently issued reports on OMC. Barclays increased their price objective on Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a research note on Monday, February 23rd. Argus raised Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. UBS Group increased their price objective on Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research note on Friday, March 20th. Bank of America reissued an "underperform" rating and issued a $77.00 price objective (down from $87.00) on shares of Omnicom Group in a research note on Monday, January 5th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Omnicom Group in a research note on Thursday, January 22nd. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Omnicom Group has a consensus rating of "Hold" and a consensus price target of $94.43.

Omnicom Group Trading Up 0.4%

Shares of NYSE:OMC traded up $0.34 during midday trading on Thursday, reaching $76.53. The company had a trading volume of 2,894,181 shares, compared to its average volume of 4,910,575. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.81 and a current ratio of 0.93. Omnicom Group has a 1-year low of $66.33 and a 1-year high of $87.17. The firm has a market cap of $21.81 billion, a price-to-earnings ratio of 156.25, a price-to-earnings-growth ratio of 0.58 and a beta of 0.73. The company has a fifty day simple moving average of $78.46 and a two-hundred day simple moving average of $76.81.

Omnicom Group (NYSE:OMC - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The business services provider reported $1.90 earnings per share for the quarter, beating analysts' consensus estimates of $1.84 by $0.06. Omnicom Group had a positive return on equity of 25.65% and a negative net margin of 0.32%.The business had revenue of $6.24 billion during the quarter, compared to analyst estimates of $5.61 billion. During the same quarter last year, the company posted $1.70 EPS. Omnicom Group's revenue for the quarter was up 69.2% on a year-over-year basis. Research analysts predict that Omnicom Group will post 10.92 earnings per share for the current year.

Omnicom Group announced that its board has authorized a share buyback program on Wednesday, February 18th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the business services provider to repurchase up to 38.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Omnicom Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC raised its stake in shares of Omnicom Group by 82.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,917 shares of the business services provider's stock valued at $138,000 after acquiring an additional 869 shares in the last quarter. Gamco Investors INC. ET AL bought a new position in shares of Omnicom Group in the 2nd quarter valued at approximately $241,000. Gabelli Funds LLC bought a new position in shares of Omnicom Group in the 2nd quarter valued at approximately $1,061,000. Daiwa Securities Group Inc. raised its stake in shares of Omnicom Group by 5.3% in the 2nd quarter. Daiwa Securities Group Inc. now owns 29,373 shares of the business services provider's stock valued at $2,113,000 after acquiring an additional 1,482 shares in the last quarter. Finally, Sei Investments Co. grew its holdings in Omnicom Group by 14.1% in the 2nd quarter. Sei Investments Co. now owns 361,266 shares of the business services provider's stock valued at $25,990,000 after buying an additional 44,746 shares during the last quarter. 91.97% of the stock is owned by hedge funds and other institutional investors.

About Omnicom Group

Omnicom Group Inc NYSE: OMC is a global marketing and corporate communications holding company headquartered in New York City. Founded in 1986 through the merger of the BBDO, DDB and Needham Harper agencies, Omnicom has built a portfolio of leading brands and networks serving clients across diverse industries.

The company's primary business activities encompass advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and customer relationship management.

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