Interpublic Group of Companies (NYSE:IPG) Stock Price Up 4.1% - Should You Buy?

Key Points

• Interpublic Group of Companies' stock price increased by 4.1% to $28.19, but trading volume was down 90% compared to its average.
• Analysts have mixed ratings on the stock, with a Hold rating and an average price target of $32.01, while UBS and Barclays have lowered their price targets.
• The company declared a quarterly dividend of $0.33 per share, with a current dividend yield of 4.7% and a payout ratio of 111.86%.

Shares of Interpublic Group of Companies, Inc. (The) (NYSE:IPG - Get Free Report) rose 4.1% during trading on Tuesday . The stock traded as high as $28.14 and last traded at $28.19. Approximately 693,936 shares traded hands during trading, a decline of 90% from the average daily volume of 6,676,181 shares. The stock had previously closed at $27.09.

Analysts Set New Price Targets

IPG has been the topic of several research analyst reports. Wall Street Zen upgraded Interpublic Group of Companies to a "hold" rating in a report on Saturday, August 16th. UBS Group decreased their target price on Interpublic Group of Companies from $27.00 to $25.60 and set a "neutral" rating on the stock in a report on Wednesday, July 23rd. Barclays cut Interpublic Group of Companies from an "overweight" rating to an "equal weight" rating and decreased their price target for the company from $34.00 to $27.50 in a report on Wednesday, June 25th. Finally, JPMorgan Chase & Co. decreased their price target on Interpublic Group of Companies from $35.00 to $33.00 and set an "overweight" rating on the stock in a report on Thursday, July 10th. Three investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Interpublic Group of Companies has an average rating of "Hold" and an average price target of $32.01.

Interpublic Group of Companies Stock Up 4.7%

The firm has a 50 day simple moving average of $26.06 and a two-hundred day simple moving average of $25.13. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.07 and a quick ratio of 1.07. The stock has a market cap of $10.39 billion, a price-to-earnings ratio of 24.04 and a beta of 1.09.

Interpublic Group of Companies (NYSE:IPG - Get Free Report) last released its earnings results on Tuesday, July 22nd. The business services provider reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.55 by $0.20. Interpublic Group of Companies had a return on equity of 28.72% and a net margin of 4.27%.The firm had revenue of $2.17 billion for the quarter, compared to analyst estimates of $2.15 billion. During the same quarter in the prior year, the firm posted $0.61 earnings per share. The company's quarterly revenue was down 6.6% on a year-over-year basis. As a group, sell-side analysts expect that Interpublic Group of Companies, Inc. will post 2.66 EPS for the current year.

Interpublic Group of Companies Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd were given a dividend of $0.33 per share. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $1.32 dividend on an annualized basis and a dividend yield of 4.7%. Interpublic Group of Companies's dividend payout ratio (DPR) is currently 111.86%.

Institutional Investors Weigh In On Interpublic Group of Companies

A number of hedge funds have recently modified their holdings of the business. CYBER HORNET ETFs LLC bought a new position in shares of Interpublic Group of Companies during the second quarter worth about $25,000. Sentry Investment Management LLC bought a new position in shares of Interpublic Group of Companies during the first quarter worth about $31,000. Parkside Financial Bank & Trust grew its holdings in shares of Interpublic Group of Companies by 72.0% during the second quarter. Parkside Financial Bank & Trust now owns 1,397 shares of the business services provider's stock worth $34,000 after buying an additional 585 shares in the last quarter. FNY Investment Advisers LLC bought a new position in shares of Interpublic Group of Companies during the first quarter worth about $44,000. Finally, Grove Bank & Trust grew its holdings in shares of Interpublic Group of Companies by 1,219.5% during the first quarter. Grove Bank & Trust now owns 2,164 shares of the business services provider's stock worth $59,000 after buying an additional 2,000 shares in the last quarter. Institutional investors and hedge funds own 98.43% of the company's stock.

About Interpublic Group of Companies

The Interpublic Group of Companies, Inc provides advertising and marketing services worldwide. It operates in three segments: Media, Data & Engagement Solutions, Integrated Advertising & Creativity Led Solutions, and Specialized Communications & Experiential Solutions. The Media, Data & Engagement Solutions segment provides media and communications services, digital services and products, advertising and marketing technology, e-commerce services, data management and analytics, strategic consulting, and digital brand experience under the IPG Mediabrands, UM, Initiative, Kinesso, Acxiom, Huge, MRM, and R/GA brand names.

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