Zacks Investment Research upgraded shares of Omnicom Group Inc. (NYSE:OMC) from a hold rating to a buy rating in a report issued on Friday. Zacks Investment Research currently has $83.00 target price on the business services provider’s stock.
According to Zacks, “Omnicom maintains a balanced growth model through a combination of well-focused internal development initiatives and strategic acquisitions. Increasing demand for media services and massive proliferation of channels are likely to improve the top line in future. Omnicom is experiencing continuous revenue growth, driven by healthy performance in developed markets like the United States and developing markets like Asia. The company has started to use open-source technique to access the current information in the market. It is also building upon its digital and analytical capabilities by investing in agencies and partnering with innovative technology companies in key markets. Omnicom has outperformed the industry year to date. 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 analysts have also commented on OMC. Royal Bank Of Canada set a $96.00 target price on shares of Omnicom Group and gave the stock a buy rating in a report on Tuesday, June 20th. BidaskClub lowered shares of Omnicom Group from a hold rating to a sell rating in a report on Wednesday, July 12th. Credit Suisse Group reaffirmed a neutral rating and set a $79.00 target price (down previously from $81.00) on shares of Omnicom Group in a report on Friday, July 14th. Jefferies Group LLC reaffirmed a hold rating and set a $82.00 target price on shares of Omnicom Group in a report on Friday, July 14th. Finally, Wells Fargo & Company reaffirmed a hold rating and set a $84.00 target price on shares of Omnicom Group in a report on Tuesday, July 18th. Three investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and two have issued a buy rating to the company. The company currently has a consensus rating of Hold and a consensus price target of $85.08.
Shares of Omnicom Group (OMC) traded down 1.936% during midday trading on Friday, hitting $73.685. The stock had a trading volume of 1,263,990 shares. The stock has a 50-day moving average of $73.93 and a 200 day moving average of $79.94. Omnicom Group has a 52 week low of $71.63 and a 52 week high of $89.66. The stock has a market cap of $17.00 billion, a PE ratio of 14.880 and a beta of 1.28.
Omnicom Group (NYSE:OMC) last released its earnings results on Thursday, July 20th. The business services provider reported $1.40 EPS for the quarter, topping analysts’ consensus estimates of $1.38 by $0.02. Omnicom Group had a net margin of 7.61% and a return on equity of 42.54%. The firm had revenue of $3.79 billion during the quarter, compared to analyst estimates of $3.74 billion. During the same quarter in the previous year, the business earned $1.36 EPS. The business’s quarterly revenue was down 2.4% compared to the same quarter last year. Analysts anticipate that Omnicom Group will post $5.09 EPS for the current fiscal year.
In other news, Treasurer Dennis E. Hewitt sold 900 shares of Omnicom Group stock in a transaction on Wednesday, July 26th. The shares were sold at an average price of $79.11, for a total transaction of $71,199.00. Following the transaction, the treasurer now directly owns 44,161 shares of the company’s stock, valued at $3,493,576.71. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Linda Johnson Rice sold 483 shares of Omnicom Group stock in a transaction on Monday, July 24th. The stock was sold at an average price of $82.19, for a total transaction of $39,697.77. Following the transaction, the director now directly owns 7,724 shares in the company, valued at $634,835.56. The disclosure for this sale can be found here. Company insiders own 1.10% of the company’s stock.
A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Cleararc Capital Inc. lifted its position in Omnicom Group by 0.3% in the 1st quarter. Cleararc Capital Inc. now owns 5,744 shares of the business services provider’s stock valued at $495,000 after acquiring an additional 19 shares in the last quarter. RMB Capital Management LLC lifted its position in Omnicom Group by 0.9% in the 1st quarter. RMB Capital Management LLC now owns 2,427 shares of the business services provider’s stock valued at $209,000 after acquiring an additional 21 shares in the last quarter. Security National Bank of Sioux City Iowa IA lifted its position in Omnicom Group by 0.3% in the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 11,858 shares of the business services provider’s stock valued at $983,000 after acquiring an additional 35 shares in the last quarter. Pennsylvania Trust Co lifted its position in Omnicom Group by 1.1% in the 2nd quarter. Pennsylvania Trust Co now owns 4,596 shares of the business services provider’s stock valued at $381,000 after acquiring an additional 50 shares in the last quarter. Finally, Financial Counselors Inc. lifted its position in Omnicom Group by 1.5% in the 2nd quarter. Financial Counselors Inc. now owns 3,728 shares of the business services provider’s stock valued at $309,000 after acquiring an additional 54 shares in the last quarter. 98.57% of the stock is currently owned by institutional investors and hedge funds.
Omnicom Group Company Profile
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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