Omnicom Group (NYSE:OMC) Shares Gap Down - Should You Sell?

Shares of Omnicom Group Inc. (NYSE:OMC - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $73.44, but opened at $71.47. Omnicom Group shares last traded at $70.86, with a volume of 564,446 shares trading hands.

Wall Street Analyst Weigh In

Several brokerages have issued reports on OMC. JPMorgan Chase & Co. cut their price objective on Omnicom Group from $116.00 to $104.00 and set an "overweight" rating for the company in a research report on Wednesday, April 16th. Citigroup restated a "buy" rating and issued a $103.00 target price on shares of Omnicom Group in a research note on Tuesday, April 15th. Argus downgraded shares of Omnicom Group from a "buy" rating to a "hold" rating in a research report on Friday, February 14th. Wells Fargo & Company decreased their price objective on shares of Omnicom Group from $99.00 to $84.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 16th. Finally, UBS Group dropped their target price on shares of Omnicom Group from $117.00 to $104.00 and set a "buy" rating for the company in a research note on Thursday, March 20th. One research analyst has rated the stock with a sell rating, two have given a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, Omnicom Group currently has an average rating of "Moderate Buy" and an average price target of $101.29.

Omnicom Group Stock Performance

The firm has a fifty day moving average of $75.11 and a 200-day moving average of $83.25. The company has a quick ratio of 0.90, a current ratio of 1.00 and a debt-to-equity ratio of 1.27. The firm has a market cap of $13.90 billion, a P/E ratio of 9.56, a PEG ratio of 1.94 and a beta of 0.93.

Omnicom Group (NYSE:OMC - Get Free Report) last released its earnings results on Tuesday, April 15th. The business services provider reported $1.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.63 by $0.07. The company had revenue of $3.69 billion for the quarter, compared to the consensus estimate of $3.73 billion. Omnicom Group had a net margin of 9.44% and a return on equity of 36.39%. Research analysts predict that Omnicom Group Inc. will post 8.25 earnings per share for the current fiscal year.

Omnicom Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 9th. Investors of record on Tuesday, June 10th will be issued a $0.70 dividend. The ex-dividend date is Tuesday, June 10th. This represents a $2.80 annualized dividend and a yield of 3.93%. Omnicom Group's dividend payout ratio is currently 38.30%.

Institutional Trading of Omnicom Group

A number of institutional investors have recently bought and sold shares of the business. First Hawaiian Bank boosted its position in shares of Omnicom Group by 11.6% in the 1st quarter. First Hawaiian Bank now owns 4,594 shares of the business services provider's stock worth $381,000 after purchasing an additional 476 shares during the last quarter. Geneos Wealth Management Inc. lifted its stake in Omnicom Group by 18.9% in the first quarter. Geneos Wealth Management Inc. now owns 3,001 shares of the business services provider's stock valued at $249,000 after buying an additional 478 shares during the period. IFM Investors Pty Ltd boosted its holdings in Omnicom Group by 1.2% during the first quarter. IFM Investors Pty Ltd now owns 35,543 shares of the business services provider's stock worth $2,947,000 after buying an additional 435 shares during the last quarter. Glenview Trust co boosted its holdings in Omnicom Group by 3.0% during the first quarter. Glenview Trust co now owns 35,590 shares of the business services provider's stock worth $2,951,000 after buying an additional 1,044 shares during the last quarter. Finally, Advisory Alpha LLC grew its position in shares of Omnicom Group by 22.8% during the 1st quarter. Advisory Alpha LLC now owns 3,948 shares of the business services provider's stock worth $327,000 after buying an additional 734 shares during the period. Institutional investors and hedge funds own 91.97% of the company's stock.

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.