Omnicom Group Inc. (OMC) Upgraded by Zacks Investment Research to Buy
Omnicom Group Inc. (NYSE:OMC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Friday. The firm presently has a $83.00 target price on the business services provider’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 11.62% from the stock’s current price.
According to Zacks, “Omnicom maintains a balanced growth model through a combination of well-focused internal development initiatives and strategic acquisitions. Increasing demand for media services and massive proliferation of channels are likely to improve the top line in future. Omnicom is experiencing continuous revenue growth, driven by healthy performance in developed markets like the United States and developing markets like Asia. The company has started to use open-source technique to access the current information in the market. It is also building upon its digital and analytical capabilities by investing in agencies and partnering with innovative technology companies in key markets. Omnicom has outperformed the industry year to date. However, a competitive and fragmented communications services industry coupled with high susceptibility to concentration risks pose a threat to Omnicom’s profitability.”
Several other equities research analysts have also commented on the stock. Jefferies Group LLC restated a “hold” rating and issued a $82.00 price target on shares of Omnicom Group in a report on Friday, July 14th. Credit Suisse Group restated a “neutral” rating and issued a $79.00 price target (down previously from $81.00) on shares of Omnicom Group in a report on Friday, July 14th. BMO Capital Markets restated a “hold” rating and issued a $85.00 price target on shares of Omnicom Group in a report on Wednesday, September 13th. Citigroup Inc. upgraded shares of Omnicom Group from a “sell” rating to a “neutral” rating in a report on Wednesday, September 6th. Finally, Wells Fargo & Company restated a “hold” rating and issued a $84.00 price target on shares of Omnicom Group in a report on Tuesday, July 18th. Two investment analysts have rated the stock with a sell rating, twelve have given a hold rating and two have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus price target of $85.08.
Omnicom Group (NYSE:OMC) last posted its quarterly earnings results on Thursday, July 20th. The business services provider reported $1.40 EPS for the quarter, beating the consensus estimate of $1.38 by $0.02. Omnicom Group had a net margin of 7.61% and a return on equity of 42.54%. The business had revenue of $3.79 billion during the quarter, compared to analyst estimates of $3.74 billion. During the same quarter in the previous year, the business posted $1.36 EPS. The company’s quarterly revenue was down 2.4% compared to the same quarter last year.
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In other Omnicom Group news, Treasurer Dennis E. Hewitt sold 900 shares of the company’s stock in a transaction that occurred on Wednesday, July 26th. The shares were sold at an average price of $79.11, for a total transaction of $71,199.00. Following the transaction, the treasurer now owns 44,161 shares in the company, valued at approximately $3,493,576.71. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Linda Johnson Rice sold 483 shares of the company’s stock in a transaction that occurred on Monday, July 24th. The shares were sold at an average price of $82.19, for a total transaction of $39,697.77. Following the transaction, the director now owns 7,724 shares in the company, valued at approximately $634,835.56. The disclosure for this sale can be found here. Corporate insiders own 1.10% of the company’s stock.
Institutional investors have recently modified their holdings of the business. Parallel Advisors LLC boosted its holdings in shares of Omnicom Group by 8.7% in the 2nd quarter. Parallel Advisors LLC now owns 1,300 shares of the business services provider’s stock valued at $102,000 after acquiring an additional 104 shares during the last quarter. Dupont Capital Management Corp purchased a new stake in shares of Omnicom Group in the 2nd quarter valued at $104,000. Acrospire Investment Management LLC purchased a new stake in shares of Omnicom Group in the 2nd quarter valued at $149,000. Invictus RG boosted its holdings in shares of Omnicom Group by 1,098.2% in the 1st quarter. Invictus RG now owns 1,977 shares of the business services provider’s stock valued at $170,000 after acquiring an additional 1,812 shares during the last quarter. Finally, FNY Partners Fund LP boosted its holdings in shares of Omnicom Group by 46.7% in the 1st quarter. FNY Partners Fund LP now owns 2,200 shares of the business services provider’s stock valued at $189,000 after acquiring an additional 700 shares during the last quarter. Institutional investors and hedge funds own 98.60% of the company’s stock.
About Omnicom Group
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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