WPP (NYSE:WPP) Shares Up 5.2% - Still a Buy?

Key Points

• WPP shares rose 5.2% in midday trading on Friday, reaching as high as $18.17 before last trading at $18.2380. Trading volume was well below average, with about 188,517 shares changing hands versus a typical 578,740.
• Analyst sentiment is mixed, but the stock currently carries a consensus Hold rating. Recent commentary ranged from Weiss Ratings’ sell rating to Berenberg’s buy rating, while Goldman Sachs initiated coverage with a sell rating and Citigroup reiterated neutral.
• Institutional investors have been modestly adding to their WPP positions, with several major firms increasing stakes in recent quarters. Still, the stock remains pressured by a relatively high debt-to-equity ratio of 1.48 and a 200-day moving average above the current share price.

Wpp Plc (NYSE:WPP - Get Free Report)'s share price traded up 5.2% during mid-day trading on Friday . The stock traded as high as $18.17 and last traded at $18.2380. Approximately 188,517 shares changed hands during trading, a decline of 67% from the average session volume of 578,740 shares. The stock had previously closed at $17.34.

Analyst Upgrades and Downgrades

Several brokerages recently commented on WPP. Weiss Ratings restated a "sell (d)" rating on shares of WPP in a research report on Tuesday, June 16th. Wall Street Zen raised shares of WPP from a "sell" rating to a "hold" rating in a research report on Saturday, March 14th. The Goldman Sachs Group initiated coverage on shares of WPP in a report on Wednesday, June 3rd. They set a "sell" rating on the stock. Berenberg Bank assumed coverage on WPP in a report on Tuesday, June 9th. They issued a "buy" rating for the company. Finally, Citigroup restated a "neutral" rating on shares of WPP in a report on Thursday, April 30th. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold".

WPP Stock Performance

The company's 50 day simple moving average is $17.92 and its 200-day simple moving average is $18.50. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 1.48.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of WPP. Hotchkis & Wiley Capital Management LLC grew its stake in WPP by 0.5% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 10,186,191 shares of the business services provider's stock worth $255,164,000 after buying an additional 47,289 shares in the last quarter. Mondrian Investment Partners LTD lifted its stake in shares of WPP by 1.5% in the 4th quarter. Mondrian Investment Partners LTD now owns 3,240,219 shares of the business services provider's stock valued at $72,775,000 after acquiring an additional 48,714 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of WPP by 12.3% during the third quarter. Dimensional Fund Advisors LP now owns 861,579 shares of the business services provider's stock valued at $21,555,000 after purchasing an additional 94,162 shares during the period. Royal Bank of Canada boosted its position in WPP by 7.5% during the 4th quarter. Royal Bank of Canada now owns 481,076 shares of the business services provider's stock valued at $10,805,000 after buying an additional 33,433 shares during the period. Finally, Bank of America Corp DE grew its stake in shares of WPP by 10.8% in the second quarter. Bank of America Corp DE now owns 470,900 shares of the business services provider's stock worth $16,486,000 after purchasing an additional 45,866 shares during the last quarter. 4.34% of the stock is currently owned by institutional investors.

WPP Company Profile

WPP plc NYSE: WPP is a British multinational advertising and public relations company headquartered in London, England. Recognized as one of the world's largest communications services groups, WPP provides a wide array of marketing, advertising, media investment management and data consultancy services. Through its integrated network of agencies—among them Ogilvy, Grey, GroupM and Wavemaker—the company delivers creative content, brand strategy, digital transformation and media planning solutions to clients across virtually every industry.

Established in 1971 by Martin Sorrell as Wire and Plastic Products, the firm underwent a strategic transformation in the 1980s, focusing on acquisitions that expanded its capabilities into advertising and communications.

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