Zacks Investment Research lowered shares of Omnicom Group Inc. (NYSE:OMC) from a buy rating to a hold rating in a report issued on Friday.
According to Zacks, “Omnicom reported relatively healthy third-quarter 2016 results, beating both revenue and earnings estimates. Adjusted earnings beat the Zacks Consensus Estimate by $0.03. Omnicom is experiencing continuous revenue growth driven by remarkable performance in the developed markets. The increasing demand for media services, speedy growth of technologies and massive proliferation of channels are likely to improve the top-line growth in the future. Omnicom is also building upon its digital and analytical capabilities by investing in agencies and partnering with innovative technology companies 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. As the company expands its international operations, it is also highly exposed to risks from foreign exchange barriers and uncertainty from monetary devaluation.”
A number of other brokerages also recently commented on OMC. Albert Fried & Company restated a hold rating and issued a $85.00 target price on shares of Omnicom Group in a research note on Thursday, July 14th. Credit Suisse Group AG began coverage on Omnicom Group in a research note on Thursday, September 15th. They issued a neutral rating and a $83.00 target price on the stock. Telsey Advisory Group upped their price target on Omnicom Group from $79.00 to $86.00 and gave the stock a market perform rating in a report on Wednesday, July 20th. Royal Bank Of Canada began coverage on Omnicom Group in a report on Friday, October 7th. They issued a sector perform rating and a $87.00 price target for the company. Finally, RBC Capital Markets began coverage on Omnicom Group in a report on Thursday, October 6th. They issued a sector perform rating and a $87.00 price target for the company. Thirteen research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus target price of $83.86.
Shares of Omnicom Group (NYSE:OMC) traded up 1.03% during midday trading on Friday, reaching $80.57. The company had a trading volume of 259,513 shares. The stock has a market capitalization of $19.00 billion, a price-to-earnings ratio of 17.27 and a beta of 1.35. The firm’s 50 day moving average price is $83.67 and its 200-day moving average price is $83.31. Omnicom Group has a 1-year low of $66.48 and a 1-year high of $87.50.
Omnicom Group (NYSE:OMC) last issued its earnings results on Tuesday, October 18th. The company reported $1.06 EPS for the quarter, topping analysts’ consensus estimates of $1.03 by $0.03. Omnicom Group had a return on equity of 39.38% and a net margin of 7.32%. The firm had revenue of $3.79 billion for the quarter, compared to the consensus estimate of $3.80 billion. During the same quarter in the prior year, the business earned $0.97 earnings per share. The company’s revenue was up 2.3% compared to the same quarter last year. Equities research analysts expect that Omnicom Group will post $4.75 EPS for the current fiscal year.
In other Omnicom Group news, Director Linda Johnson Rice sold 824 shares of the firm’s stock in a transaction on Tuesday, August 16th. The stock was sold at an average price of $84.55, for a total value of $69,669.20. Following the sale, the director now directly owns 30,440 shares in the company, valued at $2,573,702. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 1.10% of the stock is owned by company insiders.
Hedge funds have recently bought and sold shares of the stock. Wellington Management Group LLP acquired a new stake in Omnicom Group during the first quarter worth $40,095,000. Cypress Capital Group boosted its stake in Omnicom Group by 58.3% in the first quarter. Cypress Capital Group now owns 11,794 shares of the company’s stock worth $982,000 after buying an additional 4,344 shares in the last quarter. Acadian Asset Management LLC boosted its stake in Omnicom Group by 88.1% in the second quarter. Acadian Asset Management LLC now owns 12,086 shares of the company’s stock worth $984,000 after buying an additional 5,662 shares in the last quarter. Chevy Chase Trust Holdings Inc. boosted its stake in Omnicom Group by 0.4% in the second quarter. Chevy Chase Trust Holdings Inc. now owns 211,987 shares of the company’s stock worth $17,275,000 after buying an additional 772 shares during the period. Finally, PGGM Investments boosted its stake in Omnicom Group by 7.0% in the second quarter. PGGM Investments now owns 527,331 shares of the company’s stock worth $42,972,000 after buying an additional 34,588 shares during the period. Institutional investors own 97.02% 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.