Omnicom Group (NYSE:OMC) Earns Neutral Rating from Analysts at Rothschild & Co Redburn

Rothschild & Co Redburn initiated coverage on shares of Omnicom Group (NYSE:OMC) in a report issued on Thursday. The firm set a “neutral” rating and a $89.00 price target on the business services provider’s stock. Rothschild & Co Redburn’s price objective suggests a potential upside of 20.46% from the stock’s previous close.

A number of other brokerages have also recently issued reports on OMC. Barclays increased their price objective on shares of Omnicom Group from $82.00 to $90.00 and gave the company an “equal weight” rating in a research note on Monday, February 23rd. Morgan Stanley upped their target price on shares of Omnicom Group from $82.00 to $83.00 and gave the company an “equal weight” rating in a research note on Friday, May 1st. Citigroup dropped their price target on shares of Omnicom Group from $115.00 to $105.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Weiss Ratings restated a “hold (c-)” rating on shares of Omnicom Group in a research note on Friday, May 22nd. Finally, Argus upgraded Omnicom Group to a “hold” rating in a research note on Thursday, March 26th. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $93.13.

Omnicom Group Stock Performance

Shares of OMC traded down $0.96 on Thursday, reaching $73.89. 137,032 shares of the stock traded hands, compared to its average volume of 4,709,474. The firm has a market cap of $21.06 billion, a price-to-earnings ratio of 189.54, a P/E/G ratio of 0.45 and a beta of 0.66. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.91 and a quick ratio of 0.77. Omnicom Group has a 12 month low of $66.33 and a 12 month high of $87.17. The stock’s 50-day moving average price is $75.63 and its 200-day moving average price is $76.52.

Omnicom Group (NYSE:OMC) last issued its earnings results on Wednesday, April 29th. The business services provider reported $1.90 EPS for the quarter, topping the consensus estimate of $1.84 by $0.06. Omnicom Group had a return on equity of 24.48% and a net margin of 0.32%.The firm had revenue of $6.24 billion during the quarter, compared to analysts’ expectations of $5.85 billion. During the same period last year, the business earned $1.70 earnings per share. Omnicom Group’s quarterly revenue was up 69.2% compared to the same quarter last year. Equities analysts forecast that Omnicom Group will post 10.97 EPS for the current fiscal year.

Omnicom Group announced that its board has authorized a stock buyback program on Wednesday, February 18th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the business services provider to reacquire up to 38.1% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of OMC. Activest Wealth Management increased its holdings in Omnicom Group by 2,960.0% during the 4th quarter. Activest Wealth Management now owns 306 shares of the business services provider’s stock valued at $25,000 after purchasing an additional 296 shares in the last quarter. Bayforest Capital Ltd acquired a new position in Omnicom Group in the fourth quarter worth $26,000. Elyxium Wealth LLC acquired a new position in Omnicom Group in the fourth quarter worth $26,000. Cornerstone Planning Group LLC grew its holdings in shares of Omnicom Group by 2,126.7% during the third quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider’s stock worth $27,000 after purchasing an additional 319 shares during the last quarter. Finally, Legacy Wealth Managment LLC ID increased its stake in shares of Omnicom Group by 111.4% in the fourth quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider’s stock valued at $27,000 after buying an additional 176 shares in the last quarter. 91.97% of the stock is owned by institutional investors and hedge funds.

Omnicom Group Company Profile

Omnicom Group Inc (NYSE: OMC) is a global marketing and corporate communications holding company headquartered in New York City. Founded in 1986 through the merger of the BBDO, DDB and Needham Harper agencies, Omnicom has built a portfolio of leading brands and networks serving clients across diverse industries.

The company’s primary business activities encompass advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and customer relationship management.