Omnicom Group (NYSE:OMC) Trading Up 4.2% After Strong Earnings

Key Points

• Omnicom Group's stock surged 4.2% after reporting earnings of $2.24 per share, exceeding estimates by $0.07, with revenues reaching $4.04 billion.
• The company's stock now has an average rating of "Moderate Buy" with a consensus price target of $96.29, despite some analysts downgrading their target prices.
• Institutional investors hold approximately 91.97% of the stock, with significant recent activity including a 548.3% increase in ownership by Capital A Wealth Management LLC.

Omnicom Group Inc. (NYSE:OMC - Get Free Report)'s stock price was up 4.2% on Wednesday following a stronger than expected earnings report. The company traded as high as $82.50 and last traded at $82.02. Approximately 3,253,053 shares traded hands during mid-day trading, a decline of 11% from the average daily volume of 3,651,750 shares. The stock had previously closed at $78.71.

The business services provider reported $2.24 earnings per share for the quarter, beating the consensus estimate of $2.17 by $0.07. The business had revenue of $4.04 billion during the quarter, compared to the consensus estimate of $4.02 billion. Omnicom Group had a net margin of 8.67% and a return on equity of 33.62%. The business's quarterly revenue was up 4.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.03 earnings per share.

Analysts Set New Price Targets

OMC has been the subject of several analyst reports. Weiss Ratings restated a "hold (c)" rating on shares of Omnicom Group in a research note on Wednesday, October 8th. Barclays downgraded shares of Omnicom Group from an "overweight" rating to an "equal weight" rating and decreased their target price for the company from $105.00 to $80.00 in a research note on Wednesday, June 25th. Wells Fargo & Company upgraded shares of Omnicom Group from an "equal weight" rating to an "overweight" rating and upped their target price for the company from $78.00 to $91.00 in a research note on Tuesday, September 23rd. Finally, JPMorgan Chase & Co. decreased their target price on shares of Omnicom Group from $104.00 to $96.00 and set an "overweight" rating for the company in a research note on Thursday, July 10th. Five research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $96.29.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Capital A Wealth Management LLC lifted its position in shares of Omnicom Group by 548.3% in the 2nd quarter. Capital A Wealth Management LLC now owns 376 shares of the business services provider's stock worth $27,000 after buying an additional 318 shares during the last quarter. Harbor Asset Planning Inc. bought a new position in shares of Omnicom Group in the 2nd quarter worth about $29,000. Zions Bancorporation National Association UT bought a new position in shares of Omnicom Group in the 1st quarter worth about $34,000. Ameritas Advisory Services LLC bought a new position in shares of Omnicom Group in the 2nd quarter worth about $34,000. Finally, Gen Wealth Partners Inc bought a new position in shares of Omnicom Group in the 1st quarter worth about $36,000. 91.97% of the stock is currently owned by institutional investors.

Omnicom Group Stock Performance

The stock's 50-day moving average price is $77.61 and its 200-day moving average price is $74.95. The company has a current ratio of 0.92, a quick ratio of 0.80 and a debt-to-equity ratio of 0.97. The company has a market capitalization of $15.96 billion, a P/E ratio of 11.80, a P/E/G ratio of 1.53 and a beta of 0.96.

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.

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