Omnicom Group (NYSE:OMC) Stock Price Down 5.1% – Time to Sell?

Omnicom Group Inc. (NYSE:OMC) traded down 5.1% during trading on Wednesday . The stock traded as low as $80.54 and last traded at $81.6920. Approximately 2,887,079 shares changed hands during trading, a decline of 32% from the average daily volume of 4,252,755 shares. The stock had previously closed at $86.09.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on OMC. Wells Fargo & Company upped their target price on Omnicom Group from $91.00 to $93.00 and gave the stock an “overweight” rating in a research report on Thursday, July 30th. Rothschild & Co Redburn initiated coverage on shares of Omnicom Group in a research note on Thursday, May 28th. They set a “neutral” rating and a $89.00 price target for the company. Weiss Ratings upgraded shares of Omnicom Group from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, July 30th. The Goldman Sachs Group began coverage on shares of Omnicom Group in a report on Wednesday, June 3rd. They set a “buy” rating and a $146.00 price objective on the stock. Finally, Zacks Research cut shares of Omnicom Group from a “hold” rating to a “strong sell” rating in a report on Thursday, July 30th. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Omnicom Group presently has an average rating of “Hold” and an average target price of $99.00.

Omnicom Group Stock Performance

The company’s 50 day moving average price is $82.27 and its 200-day moving average price is $78.46. The stock has a market cap of $22.41 billion, a P/E ratio of 70.57, a price-to-earnings-growth ratio of 0.58 and a beta of 0.65. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.78 and a current ratio of 0.92.

Omnicom Group (NYSE:OMC) last released its quarterly earnings results on Tuesday, July 28th. The business services provider reported $2.65 earnings per share for the quarter, missing analysts’ consensus estimates of $2.67 by ($0.02). Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. The firm had revenue of $6.56 billion for the quarter, compared to the consensus estimate of $6.44 billion. During the same period in the previous year, the business earned $2.05 earnings per share. The firm’s revenue for the quarter was up 63.4% on a year-over-year basis. Equities analysts forecast that Omnicom Group Inc. will post 10.35 EPS for the current fiscal year.

Omnicom Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 18th will be paid a $0.80 dividend. The ex-dividend date is Friday, September 18th. This represents a $3.20 annualized dividend and a yield of 3.9%. Omnicom Group’s dividend payout ratio (DPR) is 275.86%.

Insider Activity at Omnicom Group

In other news, Director Linda Johnson Rice sold 1,385 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $88.73, for a total value of $122,891.05. Following the transaction, the director owned 11,719 shares in the company, valued at $1,039,826.87. The trade was a 10.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Omnicom Group

A number of hedge funds have recently bought and sold shares of OMC. Keating Financial Advisory Services Inc. purchased a new position in Omnicom Group in the second quarter worth $25,000. Elyxium Wealth LLC bought a new stake in shares of Omnicom Group during the 4th quarter worth $26,000. Legacy Wealth Managment LLC ID raised its stake in shares of Omnicom Group by 111.4% during the 4th quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider’s stock worth $27,000 after purchasing an additional 176 shares during the period. EFG International AG purchased a new position in shares of Omnicom Group in the 4th quarter worth about $28,000. Finally, Caitlin John LLC boosted its holdings in shares of Omnicom Group by 4,675.0% in the 4th quarter. Caitlin John LLC now owns 382 shares of the business services provider’s stock worth $31,000 after buying an additional 374 shares during the last quarter. 91.97% of the stock is currently owned by institutional investors.

About Omnicom Group

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.