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

Key Points

• Omnicom Group has a consensus analyst rating of “Hold”, based on 10 covering analysts: one sell, five hold, and four buy ratings. The average 12-month price target is about $99.38.
• The company recently beat quarterly earnings and revenue estimates, reporting $1.90 EPS versus $1.84 expected and $6.24 billion in revenue versus $5.85 billion expected. Revenue rose 69.2% year over year, and analysts now expect full-year EPS of 10.97.
• OMC shares were up 1.4% to $81.97 in Friday trading, while the company also paid a quarterly dividend of $0.80 per share, or $3.20 annualized, for a 3.9% yield.

Shares of Omnicom Group Inc. (NYSE:OMC - Get Free Report) have received an average recommendation of "Hold" from the ten analysts that are covering the stock, MarketBeat reports. One equities research analyst has 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 issued a report on the stock in the last year is $99.3750.

A number of brokerages have commented on OMC. Citigroup lowered their target price on Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research note on Thursday, April 30th. Morgan Stanley lifted their price target on Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a report on Friday, May 1st. Argus raised Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. The Goldman Sachs Group started coverage on Omnicom Group in a report on Wednesday, June 3rd. They issued a "buy" rating and a $146.00 price objective on the stock. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Omnicom Group in a research report on Friday, May 22nd.

Institutional Investors Weigh In On Omnicom Group

A number of large investors have recently bought and sold shares of OMC. Activest Wealth Management increased its position in Omnicom Group by 2,960.0% during the fourth quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock worth $25,000 after buying an additional 296 shares during the last quarter. Bayforest Capital Ltd acquired a new stake in shares of Omnicom Group in the fourth quarter worth about $26,000. Elyxium Wealth LLC bought a new stake in shares of Omnicom Group during the 4th quarter worth about $26,000. Legacy Wealth Managment LLC ID boosted its stake in shares of 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 acquiring an additional 176 shares in the last quarter. Finally, EFG International AG acquired a new position in shares of Omnicom Group during the 4th quarter valued at about $28,000. 91.97% of the stock is currently owned by institutional investors.

Omnicom Group Stock Up 1.4%

Shares of NYSE:OMC traded up $1.14 during trading on Friday, reaching $81.97. 2,425,687 shares of the company traded hands, compared to its average volume of 4,929,007. The firm has a fifty day simple moving average of $75.29 and a 200 day simple moving average of $76.73. The company has a quick ratio of 0.77, a current ratio of 0.91 and a debt-to-equity ratio of 0.99. Omnicom Group has a 1-year low of $66.33 and a 1-year high of $87.17. The firm has a market cap of $23.36 billion, a P/E ratio of 210.20, a price-to-earnings-growth ratio of 0.49 and a beta of 0.63.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The business services provider reported $1.90 earnings per share for the quarter, topping analysts' consensus estimates of $1.84 by $0.06. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The business had revenue of $6.24 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same period in the prior year, the business posted $1.70 earnings per share. Omnicom Group's revenue for the quarter was up 69.2% compared to the same quarter last year. Analysts anticipate that Omnicom Group will post 10.97 earnings per share for the current fiscal year.

Omnicom Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 9th. Stockholders of record on Wednesday, June 10th were issued a dividend of $0.80 per share. The ex-dividend date was Wednesday, June 10th. 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 currently 820.51%.

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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