Omnicom Group Inc. (OMC) Downgraded by Zacks Investment Research
Omnicom Group Inc. (NYSE:OMC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday.
According to Zacks, “Omnicom reported relatively healthy third-quarter 2017 results with earnings beating the Zacks Consensus Estimate by 3 cents on modest organic growth. 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 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. Post the Brexit referendum, it becomes difficult for the company to increase revenues and reduce costs. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering its productivity.”
Several other equities research analysts have also recently weighed in on OMC. Royal Bank Of Canada reduced their price target on Omnicom Group from $96.00 to $87.00 and set an “outperform” rating on the stock in a research note on Wednesday. BMO Capital Markets reissued a “hold” rating and issued a $85.00 target price on shares of Omnicom Group in a report on Wednesday. Telsey Advisory Group raised Omnicom Group from a “market perform” rating to an “outperform” rating and boosted their target price for the stock from $86.00 to $89.00 in a report on Wednesday. BidaskClub downgraded Omnicom Group from a “sell” rating to a “strong sell” rating in a report on Tuesday, August 1st. Finally, Credit Suisse Group dropped their target price on Omnicom Group from $79.00 to $78.00 and set a “neutral” rating on the stock in a report on Wednesday, October 11th. Three investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and two have issued a buy rating to the company. Omnicom Group presently has an average rating of “Hold” and an average price target of $83.87.
Omnicom Group (NYSE:OMC) last issued its quarterly earnings results on Tuesday, October 17th. The business services provider reported $1.13 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.10 by $0.03. The company had revenue of $3.72 billion for the quarter, compared to analysts’ expectations of $3.69 billion. Omnicom Group had a return on equity of 42.54% and a net margin of 7.61%. The firm’s revenue for the quarter was down 1.9% on a year-over-year basis. During the same period in the prior year, the firm earned $1.06 earnings per share.
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In other Omnicom Group news, Director Linda Johnson Rice sold 483 shares of the stock in a transaction dated Monday, July 24th. The stock was sold at an average price of $82.19, for a total value of $39,697.77. Following the transaction, the director now owns 7,724 shares of the company’s stock, valued at $634,835.56. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Treasurer Dennis E. Hewitt sold 900 shares of the stock in a transaction dated Wednesday, July 26th. The shares were sold at an average price of $79.11, for a total value of $71,199.00. Following the completion of the transaction, the treasurer now directly owns 44,161 shares in the company, valued at approximately $3,493,576.71. The disclosure for this sale can be found here. 1.10% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently bought and sold shares of the business. Cleararc Capital Inc. lifted its holdings in Omnicom Group by 0.3% in the first 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 during the period. RMB Capital Management LLC lifted its holdings in Omnicom Group by 0.9% in the first 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 during the period. Security National Bank of Sioux City Iowa IA lifted its holdings in Omnicom Group by 0.3% in the second 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 during the period. Pennsylvania Trust Co lifted its holdings in Omnicom Group by 1.1% in the second 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 during the period. Finally, Financial Counselors Inc. lifted its holdings in Omnicom Group by 1.5% in the second 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 during the period. 98.57% of the stock is currently owned by institutional investors.
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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