Zacks Investment Research lowered shares of Omnicom Group Inc. (NYSE:OMC) from a hold rating to a sell rating in a research report report published on Tuesday morning.
According to Zacks, “A significant portion of Omnicom’s revenues comes from Europe. In the present scenario, when the economy in the region is highly unpredictable particularly after the Brexit referendum, it becomes difficult for the company to increase revenues and reduce costs. Brexit could further result in higher tariff and non-tariff barriers to trade, lowering its productivity. In addition, a competitive and fragmented communications services industry coupled with high susceptibility to concentration risks pose a threat to Omnicom’s profitability. Moreover, as Omnicom expands internationally, it highly exposes itself to risks from foreign exchange barriers and uncertainty from monetary devaluation. However, increasing demand for Omnicom’s media services, speedy growth of technologies and massive proliferation of channels are likely to improve the top line in future. The company outperformed the industry year to date.”
OMC has been the subject of a number of other reports. Citigroup Inc. upgraded Omnicom Group from a sell rating to a neutral rating in a report on Wednesday, September 6th. Jefferies Group LLC reiterated a hold rating and issued a $82.00 target price on shares of Omnicom Group in a report on Thursday, September 21st. Royal Bank Of Canada set a $96.00 target price on Omnicom Group and gave the company a buy rating in a report on Tuesday, June 20th. BidaskClub downgraded Omnicom Group from a hold rating to a sell rating in a report on Wednesday, July 12th. Finally, Wells Fargo & Company reaffirmed a hold rating and set a $84.00 price target on shares of Omnicom Group in a report on Tuesday, July 18th. Three research analysts have rated the stock with a sell rating, twelve have given a hold rating and one has assigned a buy rating to the company’s stock. Omnicom Group currently has an average rating of Hold and a consensus target price of $85.92.
Omnicom Group (NYSE:OMC) traded down 0.44% during trading on Tuesday, hitting $74.12. The stock had a trading volume of 590,691 shares. The company has a market cap of $17.10 billion, a PE ratio of 14.97 and a beta of 1.28. The company’s 50 day moving average is $73.91 and its 200-day moving average is $80.16. Omnicom Group has a 12 month low of $71.63 and a 12 month high of $89.66.
Omnicom Group (NYSE:OMC) last released its earnings results on Thursday, July 20th. The business services provider reported $1.40 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.38 by $0.02. The firm had revenue of $3.79 billion during the quarter, compared to analyst estimates of $3.74 billion. Omnicom Group had a return on equity of 42.54% and a net margin of 7.61%. Omnicom Group’s revenue was down 2.4% compared to the same quarter last year. During the same period last year, the business posted $1.36 earnings per share. On average, equities research analysts predict that Omnicom Group will post $5.08 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Tuesday, October 10th. Shareholders of record on Friday, September 22nd were issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a yield of 2.96%. The ex-dividend date of this dividend was Thursday, September 21st. Omnicom Group’s dividend payout ratio (DPR) is 44.44%.
In other news, Treasurer Dennis E. Hewitt sold 900 shares of Omnicom Group stock in a transaction dated Wednesday, July 26th. The stock was sold at an average price of $79.11, for a total transaction of $71,199.00. Following the sale, the treasurer now owns 44,161 shares in the company, valued at $3,493,576.71. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Linda Johnson Rice sold 483 shares of Omnicom Group stock in a transaction dated Monday, July 24th. The stock was sold at an average price of $82.19, for a total value of $39,697.77. Following the sale, 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. 1.10% of the stock is owned by insiders.
Several institutional investors and hedge funds have recently bought and sold shares of OMC. Parallel Advisors LLC increased its position in shares of Omnicom Group by 8.7% during the second quarter. Parallel Advisors LLC now owns 1,300 shares of the business services provider’s stock worth $102,000 after purchasing an additional 104 shares in the last quarter. Dupont Capital Management Corp acquired a new stake in shares of Omnicom Group during the second quarter worth about $104,000. Acrospire Investment Management LLC acquired a new stake in shares of Omnicom Group during the second quarter worth about $149,000. Invictus RG increased its position in shares of Omnicom Group by 1,098.2% during the first quarter. Invictus RG now owns 1,977 shares of the business services provider’s stock worth $170,000 after purchasing an additional 1,812 shares in the last quarter. Finally, FNY Partners Fund LP increased its position in shares of Omnicom Group by 46.7% during the first quarter. FNY Partners Fund LP now owns 2,200 shares of the business services provider’s stock worth $189,000 after purchasing an additional 700 shares in 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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