Omnicom Group Inc. (NYSE:OMC) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Omnicom Group Inc. has received a consensus rating of "Moderate Buy" from eight research firms, with half recommending a hold and the other half a buy.
• JPMorgan Chase & Co. has lowered their price target for Omnicom Group from $104.00 to $96.00, while Citigroup maintains a buy rating with a target of $103.00.
• The company recently announced a quarterly dividend of $0.70 per share, representing an annual yield of 3.66%, to be paid on October 10th.

Omnicom Group Inc. (NYSE:OMC - Get Free Report) has been given an average recommendation of "Moderate Buy" by the eight ratings firms that are presently covering the company, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $94.43.

Several research analysts have weighed in on OMC shares. Barclays cut shares of Omnicom Group from an "overweight" rating to an "equal weight" rating and lowered their price target for the company from $105.00 to $80.00 in a report on Wednesday, June 25th. Citigroup reissued a "buy" rating and issued a $103.00 price target on shares of Omnicom Group in a report on Tuesday, April 15th. JPMorgan Chase & Co. lowered their price target on shares of Omnicom Group from $104.00 to $96.00 and set an "overweight" rating on the stock in a report on Thursday, July 10th. Wells Fargo & Company lowered their price target on shares of Omnicom Group from $84.00 to $78.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 16th. Finally, Bank of America raised shares of Omnicom Group from an "underperform" rating to a "neutral" rating and set a $80.00 price target on the stock in a report on Monday, June 23rd.

Omnicom Group Stock Performance

Shares of OMC stock traded down $0.29 on Friday, reaching $74.34. The stock had a trading volume of 1,977,955 shares, compared to its average volume of 4,526,379. The company has a quick ratio of 0.80, a current ratio of 0.92 and a debt-to-equity ratio of 0.97. The firm's 50-day moving average is $72.64 and its two-hundred day moving average is $77.52. The firm has a market capitalization of $14.40 billion, a price-to-earnings ratio of 10.67, a P/E/G ratio of 1.48 and a beta of 0.92. Omnicom Group has a 12 month low of $68.37 and a 12 month high of $107.00.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its earnings results on Tuesday, July 15th. The business services provider reported $2.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.02 by $0.03. The company had revenue of $4.02 billion for the quarter, compared to analysts' expectations of $3.95 billion. Omnicom Group had a net margin of 8.67% and a return on equity of 33.62%. Omnicom Group's quarterly revenue was up 4.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.95 EPS. On average, research analysts expect that Omnicom Group will post 8.25 EPS for the current fiscal year.

Omnicom Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Tuesday, September 2nd will be given a dividend of $0.70 per share. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $2.80 dividend on an annualized basis and a dividend yield of 3.77%. Omnicom Group's payout ratio is presently 40.17%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Crux Wealth Advisors grew its position in shares of Omnicom Group by 88.0% during the 2nd quarter. Crux Wealth Advisors now owns 6,200 shares of the business services provider's stock worth $446,000 after purchasing an additional 2,902 shares in the last quarter. Mezzasalma Advisors LLC boosted its position in shares of Omnicom Group by 4.4% during the 2nd quarter. Mezzasalma Advisors LLC now owns 5,574 shares of the business services provider's stock worth $401,000 after acquiring an additional 235 shares in the last quarter. BKM Wealth Management LLC boosted its position in shares of Omnicom Group by 11.9% during the 2nd quarter. BKM Wealth Management LLC now owns 18,443 shares of the business services provider's stock worth $1,327,000 after acquiring an additional 1,963 shares in the last quarter. Albert D Mason Inc. boosted its position in shares of Omnicom Group by 24.2% during the 2nd quarter. Albert D Mason Inc. now owns 3,653 shares of the business services provider's stock worth $263,000 after acquiring an additional 711 shares in the last quarter. Finally, Foster & Motley Inc. boosted its position in shares of Omnicom Group by 1.0% during the 2nd quarter. Foster & Motley Inc. now owns 110,693 shares of the business services provider's stock worth $7,963,000 after acquiring an additional 1,094 shares in the last quarter. Institutional investors and hedge funds own 91.97% of the company's stock.

Omnicom Group Company Profile

Omnicom Group Inc, together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, public relations, and healthcare.