Analysts Set Omnicom Group Inc. (NYSE:OMC) PT at $94.43

Key Points

• Omnicom Group Inc. has received a consensus recommendation of "Moderate Buy" from brokers, with an average target price of $94.43 for the next 12 months.
• Recent analysts' actions include Wells Fargo and Barclays lowering their price targets, while Bank of America upgraded its rating to "neutral."
• Omnicom Group recently reported earnings of $2.05 per share, exceeding estimates, and will pay a quarterly dividend of $0.70 per share on October 10th.

Omnicom Group Inc. (NYSE:OMC - Get Free Report) has earned an average recommendation of "Moderate Buy" from the eight brokerages that are covering the firm, MarketBeat reports. Four investment analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $94.4286.

A number of equities analysts recently issued reports on the stock. JPMorgan Chase & Co. lowered their price objective on shares of Omnicom Group from $104.00 to $96.00 and set an "overweight" rating for the company in a research report on Thursday, July 10th. Barclays cut shares of Omnicom Group from an "overweight" rating to an "equal weight" rating and lowered their price objective for the stock from $105.00 to $80.00 in a research report on Wednesday, June 25th. Bank of America upgraded shares of Omnicom Group from an "underperform" rating to a "neutral" rating and set a $80.00 price objective for the company in a research report on Monday, June 23rd. Finally, Wells Fargo & Company lowered their price objective on shares of Omnicom Group from $84.00 to $78.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 16th.

Omnicom Group Price Performance

Shares of Omnicom Group stock traded up $2.0480 on Wednesday, reaching $79.5280. 4,736,853 shares of the stock were exchanged, compared to its average volume of 3,263,023. The firm's 50 day moving average is $73.44 and its 200-day moving average is $76.07. Omnicom Group has a one year low of $68.37 and a one year high of $107.00. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.80 and a current ratio of 0.92. The firm has a market cap of $15.41 billion, a PE ratio of 11.41, a P/E/G ratio of 1.58 and a beta of 0.94.

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

Omnicom Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Tuesday, September 2nd will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date is Tuesday, September 2nd. Omnicom Group's dividend payout ratio is currently 40.17%.

Hedge Funds Weigh In On Omnicom Group

A number of institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in shares of Omnicom Group by 1.5% during the second quarter. Vanguard Group Inc. now owns 23,811,406 shares of the business services provider's stock valued at $1,712,993,000 after acquiring an additional 344,652 shares during the last quarter. Massachusetts Financial Services Co. MA raised its stake in shares of Omnicom Group by 9.6% during the second quarter. Massachusetts Financial Services Co. MA now owns 7,869,786 shares of the business services provider's stock valued at $566,152,000 after acquiring an additional 691,560 shares during the last quarter. JPMorgan Chase & Co. raised its stake in shares of Omnicom Group by 117.9% during the second quarter. JPMorgan Chase & Co. now owns 6,213,705 shares of the business services provider's stock valued at $447,017,000 after acquiring an additional 3,362,411 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Omnicom Group by 0.9% during the second quarter. Geode Capital Management LLC now owns 5,339,385 shares of the business services provider's stock valued at $382,717,000 after acquiring an additional 48,868 shares during the last quarter. Finally, Boston Partners raised its stake in shares of Omnicom Group by 18.5% during the first quarter. Boston Partners now owns 4,882,041 shares of the business services provider's stock valued at $402,598,000 after acquiring an additional 762,871 shares during the last quarter. 91.97% of the stock is currently owned by institutional investors and hedge funds.

About Omnicom Group

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.