Omnicom Group Inc. (NYSE:OMC) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Omnicom Group has an average “Hold” rating from 11 brokerages: two recommend selling, five advise holding, and four recommend buying. The average 12-month price target is $99, compared with the reported share price of $88.32.
• Recent analyst views were mixed, with Wells Fargo raising its target to $93 and maintaining an “overweight” rating, while Zacks downgraded the stock to “strong sell.” Goldman Sachs initiated coverage with a “buy” rating and a $146 target.
• Omnicom reported quarterly revenue of $6.56 billion, up 63.4% year over year, but adjusted earnings of $2.65 per share narrowly missed estimates. The company also declared a quarterly dividend of $0.80, representing a 3.6% annualized yield.

Omnicom Group Inc. (NYSE:OMC - Get Free Report) has been assigned an average rating of "Hold" from the eleven ratings firms that are covering the firm, Marketbeat reports. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and four have assigned a buy rating to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $99.00.

Several brokerages recently commented on OMC. Wells Fargo & Company boosted 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. Zacks Research cut shares of Omnicom Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, July 30th. Citigroup reduced their price target on shares of Omnicom Group from $105.00 to $100.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Rothschild & Co Redburn began coverage on Omnicom Group in a research report on Thursday, May 28th. They issued a "neutral" rating and a $89.00 target price on the stock. Finally, The Goldman Sachs Group started coverage on shares of Omnicom Group in a research report on Wednesday, June 3rd. They set a "buy" rating and a $146.00 price target on the stock.

Insider Buying and Selling at Omnicom Group

In other Omnicom Group news, Director Linda Johnson Rice sold 1,385 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $88.73, for a total transaction of $122,891.05. Following the completion of the transaction, the director owned 11,719 shares of the company's stock, valued at $1,039,826.87. This trade 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 the SEC website. Corporate insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Activest Wealth Management grew its position in Omnicom Group by 2,960.0% in the fourth quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock valued at $25,000 after acquiring an additional 296 shares in the last quarter. Elyxium Wealth LLC acquired a new position in shares of Omnicom Group during the fourth quarter worth $26,000. Legacy Wealth Managment LLC ID lifted its position in shares of Omnicom Group by 111.4% during the fourth quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider's stock worth $27,000 after purchasing an additional 176 shares in the last quarter. EFG International AG purchased a new position in shares of Omnicom Group in the fourth quarter valued at $28,000. Finally, Keating Financial Advisory Services Inc. purchased a new stake in Omnicom Group during the 2nd quarter worth $25,000. Institutional investors and hedge funds own 91.97% of the company's stock.

Omnicom Group Stock Performance

Shares of OMC stock opened at $88.32 on Monday. 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 has a 12-month low of $66.33 and a 12-month high of $89.57. The business's 50 day moving average is $81.71 and its two-hundred day moving average is $78.24. The company has a market capitalization of $24.23 billion, a P/E ratio of 76.14, a P/E/G ratio of 0.59 and a beta of 0.64.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its quarterly earnings data 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). The business had revenue of $6.56 billion during the quarter, compared to analysts' expectations of $6.44 billion. Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. The firm's quarterly revenue was up 63.4% compared to the same quarter last year. During the same quarter last year, the firm earned $2.05 earnings per share. Analysts expect that Omnicom Group will post 10.35 EPS for the current fiscal year.

Omnicom Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Friday, September 18th will be issued a $0.80 dividend. The ex-dividend date is Friday, September 18th. This represents a $3.20 dividend on an annualized basis and a yield of 3.6%. Omnicom Group's dividend payout ratio is currently 275.86%.

Omnicom Group Company Profile

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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