Omnicom Group Inc. (OMC) Upgraded by Zacks Investment Research to Buy

Omnicom Group Inc. (NYSE:OMC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Friday, July 14th. The firm currently has a $91.00 price objective on the business services provider’s stock. Zacks Investment Research‘s target price suggests a potential upside of 14.90% from the company’s previous close.

According to Zacks, “Omnicom outperformed the Zacks categorized Advertising and Marketing space in the last three months. The companyis experiencing continuous revenue growth driven by healthy performance in developed markets like the U.S. and developing markets like Asia. The increasing demand for media services, speedy growth of technologies and massive proliferation of channels are likely to improve the top line in the future. The company is moving into new service areas and building upon its digital and analytical capabilities to spur growth in key markets. Omnicom is also concentrating on strengthening its business and expanding its client base globally through acquisition of complementary companies. However, a competitive and fragmented communications services industry coupled with high susceptibility to concentration risks pose a threat to Omnicom’s profitability.”

A number of other equities analysts also recently weighed in on OMC. Royal Bank Of Canada set a $96.00 price target on shares of Omnicom Group and gave the stock a “buy” rating in a research note on Saturday, May 20th. BidaskClub downgraded shares of Omnicom Group from a “hold” rating to a “sell” rating in a research note on Wednesday, July 12th. Macquarie downgraded shares of Omnicom Group from an “outperform” rating to a “neutral” rating and dropped their price target for the stock from $90.00 to $83.00 in a research note on Tuesday, June 6th. Barclays PLC reaffirmed a “hold” rating and issued a $86.00 price target on shares of Omnicom Group in a research note on Thursday, April 20th. Finally, Credit Suisse Group reaffirmed a “neutral” rating and issued a $79.00 price target (down from $81.00) on shares of Omnicom Group in a research note on Friday, July 14th. Two analysts have rated the stock with a sell rating, eleven have given a hold rating and one has assigned a buy rating to the stock. Omnicom Group presently has a consensus rating of “Hold” and a consensus target price of $86.00.

Omnicom Group (NYSE OMC) traded down 0.52% during trading on Friday, reaching $79.20. The company’s stock had a trading volume of 1,404,363 shares. The firm has a 50-day moving average price of $81.66 and a 200-day moving average price of $83.74. The firm has a market capitalization of $18.28 billion, a P/E ratio of 15.99 and a beta of 1.25. Omnicom Group has a 52 week low of $77.50 and a 52 week high of $89.66.

Omnicom Group (NYSE:OMC) last posted its quarterly earnings results on Thursday, July 20th. The business services provider reported $1.40 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.38 by $0.02. Omnicom Group had a net margin of 7.61% and a return on equity of 42.54%. The business had revenue of $3.79 billion for the quarter, compared to the consensus estimate of $3.74 billion. During the same period in the prior year, the business posted $1.36 earnings per share. Omnicom Group’s revenue for the quarter was down 2.4% compared to the same quarter last year. On average, equities analysts anticipate that Omnicom Group will post $5.08 EPS for the current fiscal year.

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In other Omnicom Group news, Director Linda Johnson Rice sold 483 shares of the company’s stock in a transaction dated Monday, July 24th. The shares were sold at an average price of $82.19, for a total transaction of $39,697.77. Following the completion of the sale, the director now directly owns 7,724 shares in the company, valued at $634,835.56. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Treasurer Dennis E. Hewitt sold 900 shares of the company’s stock in a transaction dated Wednesday, July 26th. The shares were sold at an average price of $79.11, for a total transaction of $71,199.00. Following the sale, the treasurer now owns 44,161 shares of the company’s stock, valued at $3,493,576.71. The disclosure for this sale can be found here. Insiders have sold 24,183 shares of company stock valued at $2,046,845 over the last 90 days. Corporate insiders own 1.10% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. boosted its stake in Omnicom Group by 3,091.8% in the first quarter. BlackRock Inc. now owns 17,041,057 shares of the business services provider’s stock worth $1,469,108,000 after buying an additional 16,507,161 shares during the period. Vanguard Group Inc. boosted its stake in Omnicom Group by 0.7% in the first quarter. Vanguard Group Inc. now owns 15,866,652 shares of the business services provider’s stock worth $1,367,864,000 after buying an additional 116,893 shares during the period. First Eagle Investment Management LLC boosted its stake in Omnicom Group by 2.6% in the second quarter. First Eagle Investment Management LLC now owns 13,429,677 shares of the business services provider’s stock worth $1,113,320,000 after buying an additional 341,406 shares during the period. State Street Corp boosted its stake in Omnicom Group by 1.2% in the first quarter. State Street Corp now owns 9,865,534 shares of the business services provider’s stock worth $850,497,000 after buying an additional 121,470 shares during the period. Finally, Pzena Investment Management LLC boosted its stake in Omnicom Group by 21.3% in the second quarter. Pzena Investment Management LLC now owns 5,978,986 shares of the business services provider’s stock worth $495,658,000 after buying an additional 1,049,746 shares during the period. Institutional investors own 98.67% of the company’s stock.

About Omnicom Group

Omnicom Group Inc is a holding company. The Company provides advertising, marketing and corporate communications services. The Company’s branded networks and agencies operate in all markets around the world and provide a range of services, which it groups into four disciplines: advertising, customer relationship management (CRM), public relations and specialty communications.

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