Zacks Investment Research Downgrades Omnicom Group (OMC) to Sell
Omnicom Group (NYSE:OMC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
According to Zacks, “Omnicom forms a part of the communications industry which is highly competitive in nature. Moreover, a significant portion of Omnicom’s revenues comes from Europe. In the present scenario, when the economy of the region is highly unpredictable particularly after 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. The company is also susceptible to market risks of losing contracts related to media purchases and production costs. In addition, the company faces huge concentration risk as it relies on a few big clients for its businesses. The company underperformed the industry in the last three months. However, increasing demand for media services and massive proliferation of channels are likely to improve the top line in future.”
OMC has been the topic of a number of other research reports. Citigroup upgraded Omnicom Group from a “sell” rating to a “neutral” rating in a research report on Wednesday, September 6th. BMO Capital Markets restated a “hold” rating and issued a $85.00 target price on shares of Omnicom Group in a research report on Wednesday, October 18th. Jefferies Group restated a “hold” rating and issued a $82.00 target price on shares of Omnicom Group in a research report on Thursday, September 21st. Royal Bank of Canada reduced their target price on Omnicom Group from $96.00 to $87.00 and set an “outperform” rating on the stock in a research report on Wednesday, October 18th. Finally, Morgan Stanley downgraded Omnicom Group from an “equal weight” rating to an “underweight” rating and set a $72.00 target price on the stock. in a research report on Monday, October 16th. Five analysts have rated the stock with a sell rating, ten have assigned a hold rating and three have given a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus price target of $84.00.
Omnicom Group (NYSE:OMC) last released its quarterly earnings data on Tuesday, October 17th. The business services provider reported $1.13 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.10 by $0.03. The company had revenue of $3.72 billion for the quarter, compared to analyst estimates of $3.69 billion. Omnicom Group had a return on equity of 42.11% and a net margin of 7.72%. The firm’s revenue for the quarter was down 1.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.06 earnings per share. equities research analysts predict that Omnicom Group will post 5.11 earnings per share for the current fiscal year.
In related news, insider Peter K. Sherman sold 8,310 shares of the business’s stock in a transaction on Monday, December 11th. The stock was sold at an average price of $74.31, for a total value of $617,516.10. Following the sale, the insider now owns 21,271 shares in the company, valued at approximately $1,580,648.01. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Linda Johnson Rice sold 489 shares of the business’s stock in a transaction on Thursday, October 19th. The shares were sold at an average price of $74.32, for a total value of $36,342.48. Following the completion of the sale, the director now owns 7,777 shares in the company, valued at approximately $577,986.64. The disclosure for this sale can be found here. 1.10% of the stock is currently owned by insiders.
Hedge funds have recently bought and sold shares of the stock. Janus Henderson Group PLC grew its stake in Omnicom Group by 15,279.3% during the 2nd quarter. Janus Henderson Group PLC now owns 4,996,274 shares of the business services provider’s stock worth $414,191,000 after purchasing an additional 4,963,787 shares in the last quarter. Nordea Investment Management AB grew its stake in Omnicom Group by 501.5% during the 2nd quarter. Nordea Investment Management AB now owns 2,201,826 shares of the business services provider’s stock worth $182,531,000 after purchasing an additional 1,835,749 shares in the last quarter. First Eagle Investment Management LLC grew its stake in Omnicom Group by 12.4% during the 3rd quarter. First Eagle Investment Management LLC now owns 15,101,129 shares of the business services provider’s stock worth $1,118,541,000 after purchasing an additional 1,671,452 shares in the last quarter. Longview Partners Guernsey LTD grew its stake in Omnicom Group by 41.3% during the 3rd quarter. Longview Partners Guernsey LTD now owns 5,653,698 shares of the business services provider’s stock worth $418,769,000 after purchasing an additional 1,653,208 shares in the last quarter. Finally, Alliancebernstein L.P. grew its stake in Omnicom Group by 90.0% during the 2nd quarter. Alliancebernstein L.P. now owns 2,652,302 shares of the business services provider’s stock worth $219,876,000 after purchasing an additional 1,256,005 shares in the last quarter. Hedge funds and other institutional investors own 98.58% of the company’s stock.
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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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