Omnicom Group Inc. (OMC) Downgraded by Zacks Investment Research
Omnicom Group Inc. (NYSE:OMC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report 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.”
Several other analysts have also recently commented on OMC. Royal Bank Of Canada reaffirmed a “buy” rating and issued a $101.00 target price on shares of Omnicom Group in a research note on Tuesday, April 11th. Evercore ISI started coverage on shares of Omnicom Group in a research note on Monday, April 17th. They issued an “in-line” rating and a $91.00 target price for the company. They noted that the move was a valuation call. Wedbush lowered their target price on shares of Omnicom Group from $90.00 to $89.00 and set a “neutral” rating for the company in a research note on Wednesday, April 19th. Barclays PLC reaffirmed a “hold” rating and issued a $86.00 target price on shares of Omnicom Group in a research note on Thursday, April 20th. Finally, Macquarie cut shares of Omnicom Group from an “outperform” rating to a “neutral” rating and lowered their target price for the stock from $90.00 to $83.00 in a research note on Tuesday, June 6th. Two analysts have rated the stock with a sell rating, twelve have assigned a hold rating and one has assigned a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $85.54.
Omnicom Group (NYSE OMC) traded up 0.38% during midday trading on Monday, reaching $81.59. The company’s stock had a trading volume of 852,739 shares. The company’s 50-day moving average is $82.87 and its 200 day moving average is $84.58. Omnicom Group has a 52 week low of $78.67 and a 52 week high of $89.66. The firm has a market capitalization of $18.99 billion, a P/E ratio of 16.63 and a beta of 1.27.
Omnicom Group (NYSE:OMC) last released its earnings results on Tuesday, April 18th. The business services provider reported $0.97 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.96 by $0.01. The firm had revenue of $3.59 billion during the quarter, compared to analysts’ expectations of $3.55 billion. Omnicom Group had a net margin of 7.54% and a return on equity of 42.34%. Omnicom Group’s revenue for the quarter was up 2.5% on a year-over-year basis. During the same period in the previous year, the company earned $0.90 EPS. Analysts expect that Omnicom Group will post $5.04 earnings per share for the current fiscal year.
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In related news, Director Leonard S. Coleman, Jr. sold 2,038 shares of Omnicom Group stock in a transaction on Thursday, April 20th. The shares were sold at an average price of $83.93, for a total transaction of $171,049.34. Following the transaction, the director now owns 24,853 shares in the company, valued at approximately $2,085,912.29. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Chairman Bruce Crawford sold 22,800 shares of Omnicom Group stock in a transaction on Thursday, June 1st. The shares were sold at an average price of $84.91, for a total transaction of $1,935,948.00. Following the transaction, the chairman now owns 105,250 shares in the company, valued at approximately $8,936,777.50. The disclosure for this sale can be found here. Insiders own 1.10% of the company’s stock.
Institutional investors have recently bought and sold shares of the stock. Cleararc Capital Inc. raised its position 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 last quarter. RMB Capital Management LLC raised its position 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 last quarter. MUFG Americas Holdings Corp raised its position 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 last quarter. Sawtooth Solutions LLC raised its position 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 last quarter. Finally, Howard Capital Management raised its position 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 last quarter. 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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