WPP (NYSE:WPP) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Zacks Research has downgraded WPP from a "hold" to a "strong sell" rating, reflecting a negative outlook for the company.
• Other firms, including Kepler Capital Markets and Wall Street Zen, have also lowered their ratings on WPP, contributing to a majority of analysts suggesting a rating of "reduce."
• WPP stock has seen significant institutional buying, with Assetmark Inc. increasing its stake by 88.3% in the first quarter.

Zacks Research cut shares of WPP (NYSE:WPP - Free Report) from a hold rating to a strong sell rating in a research note issued to investors on Thursday,Zacks.com reports.

A number of other brokerages also recently weighed in on WPP. Wall Street Zen downgraded WPP from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Kepler Capital Markets downgraded WPP from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 31st. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of WPP in a report on Thursday, July 10th. Finally, Barclays reiterated an "underweight" rating on shares of WPP in a report on Friday, August 8th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce".

WPP Stock Down 1.1%

Shares of WPP traded down $0.3090 during trading hours on Thursday, reaching $26.7810. The company's stock had a trading volume of 256,288 shares, compared to its average volume of 500,157. The firm has a market cap of $5.78 billion, a price-to-earnings ratio of 4.49 and a beta of 1.01. WPP has a 1-year low of $24.28 and a 1-year high of $57.37. The company has a quick ratio of 0.88, a current ratio of 0.86 and a debt-to-equity ratio of 1.13. The company has a 50 day moving average of $29.76 and a two-hundred day moving average of $36.30.

WPP Cuts Dividend

The firm also recently disclosed a semi-annual dividend, which will be paid on Monday, November 3rd. Stockholders of record on Friday, October 10th will be given a $0.5033 dividend. This represents a dividend yield of 1,060.0%. The ex-dividend date of this dividend is Friday, October 10th. WPP's dividend payout ratio is currently 8.21%.

Institutional Investors Weigh In On WPP

Several hedge funds have recently modified their holdings of WPP. JPMorgan Chase & Co. boosted its position in shares of WPP by 184.3% in the fourth quarter. JPMorgan Chase & Co. now owns 15,729 shares of the business services provider's stock valued at $808,000 after acquiring an additional 10,197 shares during the period. Russell Investments Group Ltd. lifted its position in WPP by 57.0% in the fourth quarter. Russell Investments Group Ltd. now owns 2,168 shares of the business services provider's stock worth $111,000 after purchasing an additional 787 shares during the period. NewEdge Advisors LLC lifted its position in WPP by 160.7% in the fourth quarter. NewEdge Advisors LLC now owns 3,368 shares of the business services provider's stock worth $173,000 after purchasing an additional 2,076 shares during the period. First Trust Advisors LP bought a new position in WPP in the fourth quarter worth $309,000. Finally, Dimensional Fund Advisors LP lifted its position in WPP by 7.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 484,996 shares of the business services provider's stock worth $24,928,000 after purchasing an additional 35,412 shares during the period. 4.34% of the stock is owned by institutional investors.

About WPP

WPP plc, a creative transformation company, provides communications, experience, commerce, and technology services in North America, the United Kingdom, Western Continental Europe, the Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company operates through three segments: Global Integrated Agencies, Public Relations, and Specialist Agencies.