Zacks Investment Research Upgrades Interpublic Group of Companies (IPG) to “Buy”
Zacks Investment Research upgraded shares of Interpublic Group of Companies (NYSE:IPG) from a hold rating to a buy rating in a research note issued to investors on Monday. Zacks Investment Research currently has $27.00 price target on the business services provider’s stock.
According to Zacks, “Interpublic continues to benefit from higher organic revenue growth. The company's digital capabilities, diversified business model and geographic reach offer a distinctive competitive advantage. It continues to look for strategic investments and buyouts to expand in high-growth regions and key world markets. Interpublic’s consistent efforts to reward its shareholders through share repurchases and dividend payments are appreciable. Shares of the company have outperformed its industry in the past year. However, the company’s global presence makes it vulnerable to foreign currency fluctuations. Its cash position is affected by seasonality in business. Client concentration can be a major hindrance to Interpublic’s business. A debt-laden balance sheet is another concern.”
Other research analysts also recently issued research reports about the company. ValuEngine raised Interpublic Group of Companies from a sell rating to a hold rating in a report on Thursday, July 26th. Morgan Stanley reaffirmed an equal weight rating and set a $24.00 target price on shares of Interpublic Group of Companies in a report on Monday, October 15th. BMO Capital Markets increased their target price on Interpublic Group of Companies from $27.00 to $28.00 and gave the stock an outperform rating in a report on Wednesday, October 24th. JPMorgan Chase & Co. began coverage on Interpublic Group of Companies in a report on Thursday, October 11th. They set an overweight rating on the stock. Finally, Royal Bank of Canada raised Interpublic Group of Companies from a sector perform rating to an outperform rating in a report on Wednesday, July 25th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and six have given a buy rating to the stock. The stock currently has a consensus rating of Hold and an average target price of $25.56.
Interpublic Group of Companies (NYSE:IPG) last released its earnings results on Friday, October 19th. The business services provider reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.46 by $0.02. Interpublic Group of Companies had a return on equity of 30.99% and a net margin of 6.62%. The company had revenue of $1.90 billion for the quarter, compared to the consensus estimate of $1.88 billion. During the same quarter last year, the business posted $0.31 EPS. Interpublic Group of Companies’s quarterly revenue was up 3.5% compared to the same quarter last year. On average, research analysts forecast that Interpublic Group of Companies will post 1.74 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, December 17th. Stockholders of record on Monday, December 3rd will be given a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 3.58%. The ex-dividend date is Friday, November 30th. Interpublic Group of Companies’s payout ratio is 59.57%.
In other news, Director H John Greeniaus sold 5,000 shares of the stock in a transaction that occurred on Wednesday, October 31st. The stock was sold at an average price of $23.50, for a total transaction of $117,500.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Jocelyn Carter-Miller sold 8,735 shares of the stock in a transaction that occurred on Monday, November 5th. The stock was sold at an average price of $23.24, for a total value of $203,001.40. The disclosure for this sale can be found here. 1.32% of the stock is currently owned by corporate insiders.
Institutional investors have recently made changes to their positions in the company. NuWave Investment Management LLC increased its position in Interpublic Group of Companies by 117.3% in the 3rd quarter. NuWave Investment Management LLC now owns 5,654 shares of the business services provider’s stock valued at $129,000 after acquiring an additional 3,052 shares during the period. LifePlan Financial Group Inc acquired a new stake in Interpublic Group of Companies in the 2nd quarter valued at approximately $187,000. Lourd Capital LLC acquired a new stake in Interpublic Group of Companies in the 3rd quarter valued at approximately $203,000. Round Table Services LLC acquired a new stake in Interpublic Group of Companies in the 3rd quarter valued at approximately $203,000. Finally, Bessemer Group Inc. increased its position in Interpublic Group of Companies by 242.7% in the 3rd quarter. Bessemer Group Inc. now owns 9,647 shares of the business services provider’s stock valued at $222,000 after acquiring an additional 6,832 shares during the period. Institutional investors and hedge funds own 98.14% of the company’s stock.
Interpublic Group of Companies Company Profile
The Interpublic Group of Companies, Inc provides advertising and marketing services worldwide. The company operates through two segments, Integrated Agency Networks and Constituency Management Group. It offers consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines.
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