Omnicom Group Inc. (OMC) - What Are Investment Firms Saying About This Stock?

Key Points

• Analyst sentiment is mixed: Twelve brokerages rate Omnicom Group “Hold” on average—five recommend buying, six holding and one selling—with an average 12-month price target of $100.67.
• Quarterly results topped expectations: Omnicom reported adjusted earnings of $2.73 per share versus a $2.67 consensus estimate, while revenue of $6.42 billion exceeded forecasts and rose 59.1% year over year.
• The stock opened at $87.96, near its 52-week high of $89.57. Institutional investors own about 92% of shares, while a company director recently sold 1,385 shares.

Shares of Omnicom Group Inc. (NYSE:OMC - Get Free Report) have been given an average recommendation of "Hold" by the twelve brokerages that are presently covering the company, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, six have given a hold recommendation and five have issued a buy recommendation on the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $100.67.

A number of equities analysts have weighed in on OMC shares. JPMorgan Chase & Co. decreased their target price on Omnicom Group from $115.00 to $111.00 and set an "overweight" rating for the company in a research report on Friday, October 23rd. Barclays dropped their price target on shares of Omnicom Group from $88.00 to $87.00 and set an "equal weight" rating on the stock in a report on Monday, October 26th. Zacks Research upgraded shares of Omnicom Group from a "strong sell" rating to a "hold" rating in a research note on Monday, September 28th. Wells Fargo & Company lifted their price target on shares of Omnicom Group from $93.00 to $97.00 and gave the stock an "overweight" rating in a research note on Friday, October 23rd. Finally, Morgan Stanley boosted their price objective on shares of Omnicom Group from $83.00 to $85.00 and gave the company an "equal weight" rating in a report on Friday, October 23rd.

Omnicom Group Stock Up 1.3%

OMC stock opened at $87.96 on Friday. Omnicom Group has a 1-year low of $66.33 and a 1-year high of $89.57. The business has a fifty day moving average price of $79.82 and a 200-day moving average price of $78.63. The company has a debt-to-equity ratio of 0.91, a current ratio of 0.91 and a quick ratio of 0.76. The stock has a market capitalization of $24.00 billion, a P/E ratio of 49.14, a P/E/G ratio of 0.81 and a beta of 0.72.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its quarterly earnings results on Thursday, October 22nd. The business services provider reported $2.73 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.67 by $0.06. Omnicom Group had a return on equity of 24.67% and a net margin of 2.85%. The firm had revenue of $6.42 billion for the quarter, compared to the consensus estimate of $6.21 billion. During the same period in the prior year, the company posted $2.24 earnings per share. The company's quarterly revenue was up 59.1% on a year-over-year basis. Equities analysts forecast that Omnicom Group will post 10.23 earnings per share for the current fiscal year.

Insider Transactions at Omnicom Group

In related news, Director Linda Rice sold 1,385 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $88.73, for a total value of $122,891.05. Following the sale, the director owned 11,719 shares in the company, valued at approximately $1,039,826.87. This trade represents a 10.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 1.20% of the company's stock.

Institutional Investors Weigh In On Omnicom Group

A number of hedge funds have recently added to or reduced their stakes in the stock. Pure Financial Advisors LLC grew its position in shares of Omnicom Group by 3.1% in the second quarter. Pure Financial Advisors LLC now owns 4,464 shares of the business services provider's stock valued at $325,000 after purchasing an additional 135 shares during the period. Tranquilli Financial Advisor LLC raised its position in shares of Omnicom Group by 2.0% during the 2nd quarter. Tranquilli Financial Advisor LLC now owns 7,610 shares of the business services provider's stock worth $554,000 after purchasing an additional 148 shares during the last quarter. Great Lakes Retirement Inc. raised its position in shares of Omnicom Group by 0.7% during the 3rd quarter. Great Lakes Retirement Inc. now owns 20,675 shares of the business services provider's stock worth $1,539,000 after purchasing an additional 148 shares during the last quarter. Quest 10 Wealth Builders Inc. raised its position in shares of Omnicom Group by 25.4% during the 3rd quarter. Quest 10 Wealth Builders Inc. now owns 745 shares of the business services provider's stock worth $55,000 after purchasing an additional 151 shares during the last quarter. Finally, Kestra Investment Management LLC lifted its stake in Omnicom Group by 2.5% in the 3rd quarter. Kestra Investment Management LLC now owns 6,699 shares of the business services provider's stock valued at $493,000 after buying an additional 163 shares in the last quarter. 91.97% of the stock is currently owned by hedge funds and other institutional investors.

Omnicom Group Company Profile

Omnicom Group is a global marketing and communications company that provides advertising, media planning and buying, public relations, branding, and customer relationship management services. Its agencies also work in areas such as healthcare communications, digital marketing, and data-driven marketing. The company was formed in 1986 through the combination of advertising agencies BBDO, Doyle Dane Bernbach, and Needham Harper Worldwide. Omnicom operates through a network of agencies and serves clients across major markets around the world.

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