Omnicom Group Inc. (OMC) Upgraded to “Buy” by Zacks Investment Research
Zacks Investment Research upgraded shares of Omnicom Group Inc. (NYSE:OMC) from a hold rating to a buy rating in a research note published on Thursday morning. Zacks Investment Research currently has $93.00 price objective on the stock.
According to Zacks, “Omnicom is 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. The company has a positive earnings history in the trailing four quarters, while earnings estimates have increased marginally over the last month. 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 research analysts have also weighed in on OMC. BMO Capital Markets restated a hold rating and set a $80.00 price target on shares of Omnicom Group in a research note on Sunday, July 17th. Albert Fried & Company reiterated a hold rating and issued a $85.00 target price on shares of Omnicom Group in a research report on Thursday, July 14th. Credit Suisse Group AG initiated coverage on Omnicom Group in a research report on Thursday, September 15th. They issued a neutral rating and a $83.00 target price on the stock. Finally, Telsey Advisory Group upped their target price on Omnicom Group from $79.00 to $86.00 and gave the company a market perform rating in a research report on Wednesday, July 20th. Twelve equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. Omnicom Group currently has an average rating of Hold and an average price target of $82.31.
Shares of Omnicom Group (NYSE:OMC) traded down 0.897% during midday trading on Thursday, reaching $82.315. 757,562 shares of the company’s stock were exchanged. Omnicom Group has a one year low of $66.48 and a one year high of $87.50. The stock has a market cap of $19.47 billion, a P/E ratio of 18.004 and a beta of 1.35. The company’s 50-day moving average is $84.75 and its 200-day moving average is $83.39.
Omnicom Group (NYSE:OMC) last issued its quarterly earnings results on Thursday, July 14th. The company reported $1.36 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.33 by $0.03. Omnicom Group had a return on equity of 38.56% and a net margin of 7.26%. The business had revenue of $3.88 billion for the quarter, compared to analyst estimates of $3.91 billion. During the same quarter in the previous year, the firm earned $1.26 earnings per share. The company’s revenue was up 2.1% on a year-over-year basis. Equities analysts expect that Omnicom Group will post $4.75 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Monday, October 10th. Shareholders of record on Thursday, September 22nd will be given a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a yield of 2.65%. The ex-dividend date of this dividend is Tuesday, September 20th. Omnicom Group’s dividend payout ratio (DPR) is presently 48.04%.
In other Omnicom Group news, Director Linda Johnson Rice sold 824 shares of the business’s stock in a transaction dated Tuesday, August 16th. The stock was sold at an average price of $84.55, for a total transaction of $69,669.20. Following the completion of the sale, the director now owns 30,440 shares of the company’s stock, valued at $2,573,702. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 1.10% of the company’s stock.
A number of large investors have recently bought and sold shares of OMC. Independent Portfolio Consultants Inc. increased its stake in Omnicom Group by 27.0% in the third quarter. Independent Portfolio Consultants Inc. now owns 1,200 shares of the company’s stock worth $102,000 after buying an additional 255 shares during the period. Meeder Asset Management Inc. purchased a new stake in Omnicom Group during the first quarter worth about $110,000. Trust Department MB Financial Bank N A increased its stake in Omnicom Group by 6.0% in the second quarter. Trust Department MB Financial Bank N A now owns 1,768 shares of the company’s stock worth $123,000 after buying an additional 100 shares during the period. City Holding Co. increased its stake in Omnicom Group by 90.4% in the second quarter. City Holding Co. now owns 1,942 shares of the company’s stock worth $158,000 after buying an additional 922 shares during the period. Finally, Acrospire Investment Management LLC purchased a new stake in Omnicom Group during the first quarter worth about $166,000. 97.04% of the stock is owned by hedge funds and other institutional investors.
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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