Omnicom Group Inc. (OMC) Lowered to Hold at Zacks Investment Research
Zacks Investment Research cut shares of Omnicom Group Inc. (NYSE:OMC) from a buy rating to a hold rating in a report released on Monday morning.
According to Zacks, “Omnicom outperformed the Zacks categorized Advertising and Marketing space in the last three months. Over the past few quarters, the company recorded 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. However, a competitive and fragmented communications services industry coupled with high susceptibility to concentration risks pose a threat to Omnicom’s profitability. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering the productivity of the company.”
OMC has been the topic of a number of other research reports. Royal Bank Of Canada set a $96.00 price target on Omnicom Group and gave the company a buy rating in a research report on Saturday, May 20th. Jefferies Group LLC reaffirmed a hold rating and set a $82.00 price target on shares of Omnicom Group in a research report on Friday, July 14th. Evercore ISI initiated coverage on Omnicom Group in a research report on Monday, April 17th. They set an in-line rating and a $91.00 price target on the stock. They noted that the move was a valuation call. Credit Suisse Group reaffirmed a neutral rating and set a $79.00 price target (down previously from $81.00) on shares of Omnicom Group in a research report on Friday, July 14th. Finally, BidaskClub cut Omnicom Group from a hold rating to a sell rating in a research report on Wednesday, July 12th. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating and one has assigned a buy rating to the company’s stock. Omnicom Group has a consensus rating of Hold and a consensus target price of $86.00.
Omnicom Group (NYSE OMC) opened at 81.09 on Monday. Omnicom Group has a 52-week low of $78.67 and a 52-week high of $89.66. The firm’s 50-day moving average price is $82.41 and its 200 day moving average price is $84.11. The company has a market cap of $18.87 billion, a PE ratio of 16.53 and a beta of 1.27.
Omnicom Group (NYSE:OMC) last posted its quarterly earnings data on Tuesday, April 18th. The business services provider reported $0.97 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.96 by $0.01. Omnicom Group had a return on equity of 42.34% and a net margin of 7.54%. The business had revenue of $3.59 billion for the quarter, compared to analysts’ expectations of $3.55 billion. During the same quarter in the previous year, the firm earned $0.90 earnings per share. The business’s revenue was up 2.5% on a year-over-year basis. On average, equities analysts predict that Omnicom Group will post $5.04 EPS for the current fiscal year.
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The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 10th. Shareholders of record on Friday, September 22nd will be paid a $0.55 dividend. The ex-dividend date of this dividend is Thursday, September 21st. This represents a $2.20 dividend on an annualized basis and a yield of 2.71%. Omnicom Group’s dividend payout ratio is currently 44.81%.
In other Omnicom Group news, Chairman Bruce Crawford sold 22,800 shares of the company’s stock in a transaction dated Thursday, June 1st. The stock was sold at an average price of $84.91, for a total value of $1,935,948.00. Following the transaction, the chairman now directly owns 105,250 shares in the company, valued at approximately $8,936,777.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Leonard S. Coleman, Jr. sold 2,038 shares of the company’s stock in a transaction dated Thursday, April 20th. The stock was sold at an average price of $83.93, for a total value of $171,049.34. Following the completion of the transaction, the director now owns 24,853 shares in the company, valued at $2,085,912.29. The disclosure for this sale can be found here. 1.10% of the stock is owned by corporate insiders.
A number of institutional investors have recently made changes to their positions in the company. Cribstone Capital Management LLC acquired a new position in shares of Omnicom Group during the first quarter worth $164,000. Invictus RG raised its position in shares of Omnicom Group by 1,098.2% in the first quarter. Invictus RG now owns 1,977 shares of the business services provider’s stock worth $170,000 after buying an additional 1,812 shares in the last quarter. FNY Partners Fund LP raised its position in shares of Omnicom Group by 46.7% in the first quarter. FNY Partners Fund LP now owns 2,200 shares of the business services provider’s stock worth $189,000 after buying an additional 700 shares in the last quarter. Global X Management Co. LLC raised its position in shares of Omnicom Group by 29.4% in the first quarter. Global X Management Co. LLC now owns 2,245 shares of the business services provider’s stock worth $194,000 after buying an additional 510 shares in the last quarter. Finally, Huntington Steele LLC acquired a new position in shares of Omnicom Group during the first quarter worth $202,000. Institutional investors and hedge funds own 96.68% of the company’s stock.
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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