Omnicom Group Inc. (NYSE:OMC) Given Consensus Rating of "Hold" by Analysts

Key Points

• Omnicom Group has a consensus “Hold” rating from 11 analysts: two recommend selling, five advise holding, and four recommend buying. The average 12-month price target is $99, compared with a recent share price of $81.76.
• In its latest quarter, Omnicom reported $2.65 in EPS, slightly below the $2.67 consensus estimate, while revenue of $6.56 billion exceeded expectations and rose 63.4% year over year.
• The company declared a quarterly dividend of $0.80 per share, or $3.20 annually, implying a 3.9% yield; institutional investors own nearly 92% of the stock.

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

Several equities research analysts have recently issued reports on OMC shares. The Goldman Sachs Group initiated coverage on shares of Omnicom Group in a research report on Wednesday, June 3rd. They set a "buy" rating and a $146.00 price objective for the company. Citigroup reduced their target price on shares of Omnicom Group from $105.00 to $100.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Wells Fargo & Company increased their target price on Omnicom Group from $91.00 to $93.00 and gave the stock an "overweight" rating in a report on Thursday, July 30th. Rothschild & Co Redburn began coverage on Omnicom Group in a research note on Thursday, May 28th. They issued a "neutral" rating and a $89.00 price target on the stock. Finally, Zacks Research lowered Omnicom Group from a "hold" rating to a "strong sell" rating in a report on Thursday, July 30th.

Omnicom Group Price Performance

Shares of OMC opened at $81.76 on Thursday. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.78 and a current ratio of 0.92. The stock has a 50 day simple moving average of $77.66 and a 200 day simple moving average of $76.91. Omnicom Group has a 52-week low of $66.33 and a 52-week high of $87.41. The firm has a market capitalization of $22.43 billion, a PE ratio of 70.48, a P/E/G ratio of 0.54 and a beta of 0.64.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its earnings results on Tuesday, July 28th. The business services provider reported $2.65 EPS for the quarter, missing the consensus estimate of $2.67 by ($0.02). Omnicom Group had a return on equity of 24.73% and a net margin of 1.74%.The company had revenue of $6.56 billion for the quarter, compared to analyst estimates of $6.44 billion. During the same quarter last year, the business posted $2.05 earnings per share. The business's quarterly revenue was up 63.4% on a year-over-year basis. Sell-side analysts predict that Omnicom Group will post 10.35 EPS for the current fiscal year.

Omnicom Group Announces Dividend

The company 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 dividend of $0.80 per share. The ex-dividend date is Friday, September 18th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 3.9%. Omnicom Group's dividend payout ratio (DPR) is presently 275.86%.

Institutional Investors Weigh In On Omnicom Group

Institutional investors have recently bought and sold shares of the company. Activest Wealth Management grew its stake in shares of Omnicom Group by 2,960.0% during the 4th quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock worth $25,000 after acquiring an additional 296 shares in the last quarter. Bayforest Capital Ltd bought a new position in Omnicom Group in the fourth quarter valued at $26,000. Elyxium Wealth LLC acquired a new stake in Omnicom Group in the 4th quarter valued at $26,000. Legacy Wealth Managment LLC ID lifted its position in Omnicom Group by 111.4% during the 4th quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider's stock worth $27,000 after buying an additional 176 shares in the last quarter. Finally, EFG International AG bought a new stake in Omnicom Group during the 4th quarter worth about $28,000. Institutional investors own 91.97% of the company's stock.

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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