Interpublic Group of Companies (NYSE:IPG) Trading Down 4.8% - Should You Sell?

Key Points

• Interpublic Group's share price decreased by 4.8% to $26.57, significantly down from a previous close of $27.91, with trading volume dropping 41% below the average.
• Analysts have lowered price targets for Interpublic Group, with UBS Group adjusting their target from $27.00 to $25.60 and Barclays moving from $34.00 to $27.50, reflecting a consensus rating of "Hold" with a target of $32.01.
• The company recently declared a quarterly dividend of $0.33, yielding 5.0%, but has a high payout ratio of 111.86%, signaling potential concerns about sustainable dividend payments.

Interpublic Group of Companies, Inc. (The) (NYSE:IPG - Get Free Report)'s share price fell 4.8% during mid-day trading on Wednesday . The stock traded as low as $26.57 and last traded at $26.57. 4,009,321 shares were traded during trading, a decline of 41% from the average session volume of 6,757,816 shares. The stock had previously closed at $27.91.

Analysts Set New Price Targets

Several research firms have issued reports on IPG. UBS Group lowered their price target on shares of Interpublic Group of Companies from $27.00 to $25.60 and set a "neutral" rating for the company in a report on Wednesday, July 23rd. Barclays lowered shares of Interpublic Group of Companies from an "overweight" rating to an "equal weight" rating and lowered their price target for the stock from $34.00 to $27.50 in a report on Wednesday, June 25th. Wall Street Zen raised shares of Interpublic Group of Companies to a "hold" rating in a research report on Saturday, August 16th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Interpublic Group of Companies from $35.00 to $33.00 and set an "overweight" rating for the company in a research report on Thursday, July 10th. Three equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Interpublic Group of Companies currently has a consensus rating of "Hold" and a consensus price target of $32.01.

Interpublic Group of Companies Trading Down 5.1%

The firm's 50-day moving average is $26.10 and its 200-day moving average is $25.15. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.78. The firm has a market cap of $9.70 billion, a price-to-earnings ratio of 22.45 and a beta of 1.09.

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

Interpublic Group of Companies Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd were paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 5.0%. The ex-dividend date was Tuesday, September 2nd. Interpublic Group of Companies's payout ratio is currently 111.86%.

Institutional Investors Weigh In On Interpublic Group of Companies

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Teacher Retirement System of Texas bought a new stake in shares of Interpublic Group of Companies during the first quarter valued at about $1,480,000. Asset Management One Co. Ltd. increased its position in shares of Interpublic Group of Companies by 2.4% during the first quarter. Asset Management One Co. Ltd. now owns 153,830 shares of the business services provider's stock valued at $4,178,000 after buying an additional 3,547 shares during the period. State of Alaska Department of Revenue increased its position in shares of Interpublic Group of Companies by 2.8% during the first quarter. State of Alaska Department of Revenue now owns 43,655 shares of the business services provider's stock valued at $1,185,000 after buying an additional 1,170 shares during the period. Sound Income Strategies LLC increased its position in shares of Interpublic Group of Companies by 5.6% during the second quarter. Sound Income Strategies LLC now owns 457,333 shares of the business services provider's stock valued at $11,196,000 after buying an additional 24,258 shares during the period. Finally, Goldman Sachs Group Inc. increased its position in shares of Interpublic Group of Companies by 49.0% during the first quarter. Goldman Sachs Group Inc. now owns 8,510,242 shares of the business services provider's stock valued at $231,138,000 after buying an additional 2,797,490 shares during the period. 98.43% of the stock is currently owned by institutional investors.

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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