Omnicom Group Inc. (OMC) Upgraded to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Omnicom Group Inc. (NYSE:OMC) from a hold rating to a buy rating in a research report sent to investors on Thursday. The firm currently has $93.00 price target on the business services provider’s stock.
According to Zacks, “Omnicom recorded relatively modest second-quarter results as earnings increased year over year although revenues declined. Nevertheless, the company exceeded the Zacks Consensus Estimates for both earnings and revenues. 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. Omnicom maintains a balanced growth model through a combination of well-focused internal development initiatives and strategic acquisitions. The company is moving into new service areas and building upon its digital and analytical capabilities to spur growth in key markets. Stringent cost-cutting initiatives have further helped Omnicom to boost its margins in the second quarter. However, a competitive and fragmented communications services industry coupled with high susceptibility to concentration risks pose a threat to Omnicom’s profitability.”
Other equities analysts have also recently issued research reports about the stock. Royal Bank Of Canada set a $96.00 price target on shares of Omnicom Group and gave the company a buy rating in a research report on Tuesday, June 20th. Wells Fargo & Company reissued a hold rating and issued a $84.00 price target on shares of Omnicom Group in a research report on Tuesday, July 18th. Jefferies Group LLC reissued a hold rating and issued a $82.00 price target on shares of Omnicom Group in a research report on Friday, July 14th. Barclays PLC reissued a hold rating and issued a $86.00 price target on shares of Omnicom Group in a research report on Thursday, April 20th. Finally, Evercore ISI initiated coverage on shares of Omnicom Group in a research report on Monday, April 17th. They issued an in-line rating and a $91.00 price target for the company. They noted that the move was a valuation call. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating and two have assigned a buy rating to the company. The company presently has an average rating of Hold and a consensus price target of $86.00.
Omnicom Group (NYSE:OMC) last issued its quarterly earnings results on Thursday, July 20th. The business services provider reported $1.40 EPS for the quarter, beating the Thomson Reuters’ 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 company had revenue of $3.79 billion during the quarter, compared to analysts’ expectations of $3.74 billion. During the same quarter last year, the company posted $1.36 EPS. The firm’s revenue was down 2.4% compared to the same quarter last year.
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 10th. Stockholders of record on Friday, September 22nd will be given a dividend of $0.55 per share. The ex-dividend date of this dividend is Thursday, September 21st. This represents a $2.20 annualized dividend and a dividend yield of 2.79%. Omnicom Group’s dividend payout ratio (DPR) is currently 44.44%.
In other news, Treasurer Dennis E. Hewitt sold 900 shares of Omnicom Group stock in a transaction 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 completion of the sale, the treasurer now directly owns 44,161 shares of the company’s stock, valued at approximately $3,493,576.71. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Chairman Bruce Crawford sold 22,800 shares of Omnicom Group stock in a transaction on Thursday, June 1st. The stock was sold at an average price of $84.91, for a total transaction of $1,935,948.00. Following the sale, the chairman now directly owns 105,250 shares of the company’s stock, valued at $8,936,777.50. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 24,183 shares of company stock valued at $2,046,845. Corporate insiders own 1.10% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. Cleararc Capital Inc. boosted 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 boosted 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 boosted 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 boosted 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 boosted 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. 98.67% of the stock is owned by institutional investors and hedge funds.
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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