Omnicom Group (NYSE:OMC) Trading Down 3.9% After Analyst Downgrade

Omnicom Group Inc. (NYSE:OMC - Get Free Report)'s share price fell 3.9% during mid-day trading on Thursday after Wells Fargo & Company lowered their price target on the stock from $84.00 to $78.00. Wells Fargo & Company currently has an equal weight rating on the stock. Omnicom Group traded as low as $70.94 and last traded at $71.18. 3,207,440 shares were traded during mid-day trading, an increase of 18% from the average session volume of 2,724,180 shares. The stock had previously closed at $74.05.

A number of other research analysts have also weighed in on OMC. Bank of America raised shares of Omnicom Group from an "underperform" rating to a "neutral" rating and set a $80.00 target price for the company in a report on Monday, June 23rd. JPMorgan Chase & Co. cut their target price on shares of Omnicom Group from $104.00 to $96.00 and set an "overweight" rating for the company in a report on Thursday, July 10th. Citigroup reissued a "buy" rating and issued a $103.00 target price on shares of Omnicom Group in a report on Tuesday, April 15th. UBS Group cut their target price on shares of Omnicom Group from $117.00 to $104.00 and set a "buy" rating for the company in a report on Thursday, March 20th. Finally, Barclays lowered shares of Omnicom Group from an "overweight" rating to an "equal weight" rating and cut their target price for the company from $105.00 to $80.00 in a report on Wednesday, June 25th. Four investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $94.43.

Hedge Funds Weigh In On Omnicom Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Johnson Financial Group Inc. lifted its holdings in shares of Omnicom Group by 153.8% during the fourth quarter. Johnson Financial Group Inc. now owns 330 shares of the business services provider's stock worth $29,000 after purchasing an additional 200 shares during the period. Zions Bancorporation National Association UT acquired a new position in shares of Omnicom Group during the 1st quarter worth approximately $34,000. Gen Wealth Partners Inc acquired a new position in shares of Omnicom Group during the 1st quarter worth approximately $36,000. Versant Capital Management Inc raised its stake in shares of Omnicom Group by 45.7% during the 1st quarter. Versant Capital Management Inc now owns 456 shares of the business services provider's stock worth $38,000 after buying an additional 143 shares during the period. Finally, CoreCap Advisors LLC raised its stake in shares of Omnicom Group by 708.8% during the 4th quarter. CoreCap Advisors LLC now owns 461 shares of the business services provider's stock worth $40,000 after buying an additional 404 shares during the period. Hedge funds and other institutional investors own 91.97% of the company's stock.

Omnicom Group Price Performance

The company has a quick ratio of 0.87, a current ratio of 1.01 and a debt-to-equity ratio of 1.24. The stock has a market capitalization of $13.89 billion, a PE ratio of 10.21, a PEG ratio of 1.56 and a beta of 0.92. The company has a 50-day moving average of $73.07 and a 200 day moving average of $78.24.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its quarterly earnings results on Tuesday, July 15th. The business services provider reported $2.05 EPS for the quarter, topping the consensus estimate of $2.02 by $0.03. The firm had revenue of $4.02 billion during the quarter, compared to analysts' expectations of $3.95 billion. Omnicom Group had a return on equity of 34.16% and a net margin of 8.67%. The firm's revenue for the quarter was up 4.2% on a year-over-year basis. During the same period in the previous year, the business earned $1.95 earnings per share. Sell-side analysts predict that Omnicom Group Inc. will post 8.25 EPS for the current year.

Omnicom Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 9th. Shareholders of record on Tuesday, June 10th were given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 3.93%. The ex-dividend date of this dividend was Tuesday, June 10th. Omnicom Group's dividend payout ratio is currently 40.17%.

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.

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