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. They currently have $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.”
OMC has been the subject of several other research reports. Credit Suisse Group AG assumed coverage on shares of Omnicom Group in a research note on Thursday, September 15th. They set a neutral rating and a $83.00 price target for the company. Telsey Advisory Group increased their price objective on shares of Omnicom Group from $79.00 to $86.00 and gave the stock a market perform rating in a research report on Wednesday, July 20th. Albert Fried & Company reiterated a hold rating and set a $85.00 price objective on shares of Omnicom Group in a research report on Thursday, July 14th. Finally, BMO Capital Markets reiterated a hold rating and set a $80.00 price objective on shares of Omnicom Group in a research report on Sunday, July 17th. Twelve equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. Omnicom Group has a consensus rating of Hold and an average target price of $82.31.
Omnicom Group (NYSE:OMC) traded down 0.897% during midday trading on Thursday, reaching $82.315. 757,562 shares of the company traded hands. Omnicom Group has a 12-month low of $66.48 and a 12-month high of $87.50. The company has a 50 day moving average of $84.75 and a 200-day moving average of $83.39. The stock has a market capitalization of $19.47 billion, a P/E ratio of 18.004 and a beta of 1.35.
Omnicom Group (NYSE:OMC) last released its quarterly earnings results on Thursday, July 14th. The company reported $1.36 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.33 by $0.03. The firm earned $3.88 billion during the quarter, compared to the consensus estimate of $3.91 billion. Omnicom Group had a net margin of 7.26% and a return on equity of 38.56%. The company’s revenue for the quarter was up 2.1% on a year-over-year basis. During the same quarter last year, the firm earned $1.26 earnings per share. Equities analysts anticipate that Omnicom Group will post $4.75 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Monday, October 10th. Shareholders of record on Thursday, September 22nd will be paid 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 is Tuesday, September 20th. Omnicom Group’s payout ratio is 48.04%.
In other Omnicom Group news, Director Linda Johnson Rice sold 824 shares of the firm’s stock in a transaction that occurred on Tuesday, August 16th. The shares were sold at an average price of $84.55, for a total transaction of $69,669.20. Following the sale, the director now owns 30,440 shares in the company, valued at approximately $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 made changes to their positions in OMC. Independent Portfolio Consultants Inc. raised its stake in shares of 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. bought a new stake in shares of Omnicom Group during the first quarter worth about $110,000. Trust Department MB Financial Bank N A raised its stake in shares of 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. raised its stake in shares of 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, PineBridge Investments L.P. raised its stake in shares of Omnicom Group by 11.0% in the second quarter. PineBridge Investments L.P. now owns 2,000 shares of the company’s stock worth $163,000 after buying an additional 198 shares during the period. 97.04% of the stock is owned by institutional investors and hedge funds.
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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