Zacks Investment Research upgraded shares of Omnicom Group Inc. (NYSE:OMC) from a hold rating to a buy rating in a research report released on Thursday morning. The brokerage currently has $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.”
Several other research analysts have also commented on OMC. Albert Fried & Company restated a hold rating and set a $85.00 price target on shares of Omnicom Group in a research note on Thursday, July 14th. BMO Capital Markets restated a hold rating and set a $80.00 price target on shares of Omnicom Group in a research note on Sunday, July 17th. Telsey Advisory Group increased their price target on shares of Omnicom Group from $79.00 to $86.00 and gave the stock a market perform rating in a research note on Wednesday, July 20th. Finally, Credit Suisse Group AG initiated 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 on the stock. Twelve research analysts have rated the stock with a hold rating and two have given a buy rating to the company. Omnicom Group has a consensus rating of Hold and a consensus target price of $82.64.
Shares of Omnicom Group (NYSE:OMC) opened at 82.66 on Thursday. Omnicom Group has a 12 month low of $66.48 and a 12 month high of $87.50. The company’s 50 day moving average is $84.65 and its 200-day moving average is $83.43. The company has a market cap of $19.55 billion, a P/E ratio of 18.08 and a beta of 1.35.
Omnicom Group (NYSE:OMC) last announced its quarterly earnings results on Thursday, July 14th. The company reported $1.36 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.33 by $0.03. Omnicom Group had a net margin of 7.26% and a return on equity of 38.56%. The company had revenue of $3.88 billion for the quarter, compared to analyst estimates of $3.91 billion. During the same quarter in the prior year, the business posted $1.26 EPS. Omnicom Group’s quarterly revenue was up 2.1% on a year-over-year basis. Analysts expect that Omnicom Group will post $4.75 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, October 10th. Stockholders of record on Thursday, September 22nd were issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 2.66%. The ex-dividend date of this dividend was Tuesday, September 20th. Omnicom Group’s payout ratio is 48.04%.
In other news, Director Linda Johnson Rice sold 824 shares of the firm’s stock in a transaction dated Tuesday, August 16th. The shares were sold at an average price of $84.55, for a total transaction of $69,669.20. Following the completion of the transaction, the director now directly owns 30,440 shares of the company’s stock, valued at approximately $2,573,702. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 1.10% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in OMC. Checchi Capital Advisers LLC increased its position in Omnicom Group by 1.0% in the second quarter. Checchi Capital Advisers LLC now owns 3,230 shares of the company’s stock worth $263,000 after buying an additional 31 shares during the last quarter. Dowling & Yahnke LLC increased its position in Omnicom Group by 1.3% in the second quarter. Dowling & Yahnke LLC now owns 4,243 shares of the company’s stock worth $346,000 after buying an additional 53 shares during the last quarter. Nippon Life Insurance Co. increased its position in Omnicom Group by 0.3% in the second quarter. Nippon Life Insurance Co. now owns 20,905 shares of the company’s stock worth $1,704,000 after buying an additional 54 shares during the last quarter. Mn Services Vermogensbeheer B.V. increased its position in Omnicom Group by 1.1% in the second quarter. Mn Services Vermogensbeheer B.V. now owns 6,086 shares of the company’s stock worth $446,000 after buying an additional 66 shares during the last quarter. Finally, Trust Department MB Financial Bank N A increased its position in 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 last quarter. 97.04% of the stock is owned by institutional investors.
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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