Omnicom Group (NYSE:OMC) Share Price Breaks Below 200 Day Moving Average - Time to Sell?

Key Points

• Omnicom shares fell below their 200-day moving average, trading as low as $76.47 versus the $78.22 average, signaling near-term technical weakness.
• Analysts maintain a generally neutral view: five rate the stock Buy, six Hold, and one Sell. The consensus rating is Hold, with an average price target of $100.67.
• Despite the share-price decline, Omnicom exceeded quarterly expectations, reporting $2.73 in earnings per share and $6.42 billion in revenue, with revenue up 59.1% year over year.

Shares of Omnicom Group Inc. (NYSE:OMC - Get Free Report) crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $78.22 and traded as low as $76.47. Omnicom Group shares last traded at $77.6750, with a volume of 2,406,695 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on OMC. Citigroup decreased their price objective on shares of Omnicom Group from $105.00 to $100.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Morgan Stanley raised their target price on Omnicom Group from $83.00 to $85.00 and gave the company an "equal weight" rating in a report on Friday, October 23rd. JPMorgan Chase & Co. reduced their price target on Omnicom Group from $115.00 to $111.00 and set an "overweight" rating for the company in a research report on Friday, October 23rd. Barclays decreased their price target on Omnicom Group from $88.00 to $87.00 and set an "equal weight" rating for the company in a research note on Monday. Finally, Weiss Ratings upgraded Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, July 30th. Five equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $100.67.

Omnicom Group Stock Performance

The company has a debt-to-equity ratio of 0.97, a current ratio of 0.92 and a quick ratio of 0.78. The firm has a fifty day simple moving average of $80.07 and a 200 day simple moving average of $78.22. The company has a market cap of $21.31 billion, a price-to-earnings ratio of 43.39, a P/E/G ratio of 0.71 and a beta of 0.68.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its quarterly earnings data on Thursday, October 22nd. The business services provider reported $2.73 earnings per share for the quarter, topping analysts' consensus estimates of $2.67 by $0.06. Omnicom Group had a net margin of 2.85% and a return on equity of 24.29%. The business had revenue of $6.42 billion during the quarter, compared to analysts' expectations of $6.21 billion. During the same period in the previous year, the company earned $2.24 earnings per share. Omnicom Group's revenue for the quarter was up 59.1% on a year-over-year basis. On average, sell-side analysts expect that Omnicom Group Inc. will post 10.37 earnings per share for the current fiscal year.

Insider Transactions at Omnicom Group

In related news, Director Linda Rice sold 1,385 shares of the firm's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $88.73, for a total value of $122,891.05. Following the transaction, the director directly owned 11,719 shares in the company, valued at approximately $1,039,826.87. This trade represents a 10.57% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of OMC. Glenview Trust Co lifted its position in shares of Omnicom Group by 21.4% in the 3rd quarter. Glenview Trust Co now owns 42,678 shares of the business services provider's stock worth $3,142,000 after acquiring an additional 7,524 shares during the period. D.A. Davidson & CO. grew its holdings in shares of Omnicom Group by 3.2% during the 3rd quarter. D.A. Davidson & CO. now owns 12,040 shares of the business services provider's stock worth $887,000 after purchasing an additional 375 shares in the last quarter. Great Lakes Retirement Inc. increased its position in shares of Omnicom Group by 0.7% during the third quarter. Great Lakes Retirement Inc. now owns 20,675 shares of the business services provider's stock valued at $1,539,000 after purchasing an additional 148 shares during the period. Latitude Advisors LLC bought a new stake in shares of Omnicom Group during the third quarter valued at approximately $80,000. Finally, Oppenheimer & Co. Inc. increased its position in shares of Omnicom Group by 4.1% during the third quarter. Oppenheimer & Co. Inc. now owns 19,503 shares of the business services provider's stock valued at $1,436,000 after purchasing an additional 777 shares during the period. 91.97% of the stock is currently owned by institutional investors and hedge funds.

About Omnicom Group

Omnicom Group Inc is a global marketing and communications company that provides advertising, media, branding, public relations, customer relationship management, and digital marketing services. The company works with organizations across industries to develop brand strategies, create content, manage media campaigns, and engage customers through traditional and digital channels.

Omnicom operates through a network of independently branded agencies, including BBDO Worldwide, DDB Worldwide, TBWA Worldwide, Omnicom Media Group, FleishmanHillard, Ketchum, Porter Novelli, RAPP, and several specialized healthcare, experiential, and data-driven marketing agencies.

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