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 Monday.
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.”
A number of other equities research analysts have also commented on OMC. Royal Bank Of Canada reaffirmed a “buy” rating and set a $101.00 price target on shares of Omnicom Group in a research report on Tuesday, April 11th. 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. Barclays PLC reissued a “hold” rating and issued a $86.00 target price on shares of Omnicom Group in a research report on Thursday, April 20th. Evercore ISI assumed coverage on Omnicom Group in a research report on Monday, April 17th. They issued an “in-line” rating and a $91.00 target price on the stock. They noted that the move was a valuation call. Finally, Wedbush dropped their target price on Omnicom Group from $90.00 to $89.00 and set a “neutral” rating on the stock in a research report on Wednesday, April 19th. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating and one has given a buy rating to the stock. The company presently has an average rating of “Hold” and an average price target of $85.54.
Omnicom Group (OMC) traded up 0.41% during mid-day trading on Monday, reaching $81.61. The company’s stock had a trading volume of 621,424 shares. Omnicom Group has a 12 month low of $78.67 and a 12 month high of $89.66. The stock’s 50 day moving average is $82.87 and its 200 day moving average is $84.58. The company has a market cap of $18.99 billion, a price-to-earnings ratio of 16.64 and a beta of 1.27.
Omnicom Group (NYSE:OMC) last issued its earnings results on Tuesday, April 18th. The business services provider reported $0.97 earnings per share (EPS) for the quarter, topping the Zacks’ 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 firm had revenue of $3.59 billion for the quarter, compared to analysts’ expectations of $3.55 billion. During the same quarter last year, the business earned $0.90 earnings per share. The company’s revenue was up 2.5% compared to the same quarter last year. Equities research analysts predict that Omnicom Group will post $5.04 EPS for the current year.
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In related news, Chairman Bruce Crawford sold 22,800 shares of the business’s stock in a transaction on 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 completion of the sale, the chairman now directly owns 105,250 shares in the company, valued at approximately $8,936,777.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Leonard S. Coleman, Jr. sold 2,038 shares of the business’s stock in a transaction on Thursday, April 20th. The shares were sold at an average price of $83.93, for a total value of $171,049.34. Following the completion of the sale, the director now owns 24,853 shares of the company’s stock, valued at $2,085,912.29. The disclosure for this sale can be found here. Insiders own 1.10% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in OMC. Cleararc Capital Inc. increased its stake 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 buying an additional 19 shares during the period. RMB Capital Management LLC increased its stake 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 buying an additional 21 shares during the period. MUFG Americas Holdings Corp increased its stake in Omnicom Group by 0.3% in the first quarter. MUFG Americas Holdings Corp now owns 8,326 shares of the business services provider’s stock valued at $718,000 after buying an additional 26 shares during the period. Sawtooth Solutions LLC increased its stake in Omnicom Group by 0.4% in the first quarter. Sawtooth Solutions LLC now owns 8,961 shares of the business services provider’s stock valued at $773,000 after buying an additional 33 shares during the period. Finally, Howard Capital Management increased its stake in Omnicom Group by 1.2% in the first quarter. Howard Capital Management now owns 3,452 shares of the business services provider’s stock valued at $298,000 after buying an additional 40 shares during the period. 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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