Interpublic Group of Companies (IPG) Shares Up 9.7% Following Earnings Beat

Interpublic Group of Companies Inc (NYSE:IPG) shot up 9.7% during trading on Friday following a better than expected earnings announcement. The company traded as high as $24.95 and last traded at $24.65. 13,172,456 shares were traded during mid-day trading, an increase of 183% from the average session volume of 4,655,455 shares. The stock had previously closed at $22.48.

The business services provider reported $0.48 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.46 by $0.02. Interpublic Group of Companies had a return on equity of 28.53% and a net margin of 6.75%. The company had revenue of $1.90 billion during the quarter, compared to the consensus estimate of $1.88 billion. During the same period in the previous year, the company posted $0.31 EPS. The firm’s revenue for the quarter was up 3.5% compared to the same quarter last year.

Several research firms recently issued reports on IPG. ValuEngine upgraded Interpublic Group of Companies from a “sell” rating to a “hold” rating in a research note on Friday, June 22nd. Zacks Investment Research downgraded Interpublic Group of Companies from a “buy” rating to a “hold” rating in a research note on Tuesday, June 26th. Citigroup boosted their price target on Interpublic Group of Companies from $27.00 to $28.00 and gave the company a “buy” rating in a research note on Friday. Pivotal Research reduced their price target on Interpublic Group of Companies from $25.00 to $23.00 and set a “hold” rating for the company in a research note on Tuesday, July 3rd. Finally, Macquarie upgraded Interpublic Group of Companies from a “neutral” rating to an “outperform” rating and boosted their price target for the company from $24.00 to $25.00 in a research note on Thursday, September 20th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and five have given a buy rating to the stock. The stock has an average rating of “Hold” and an average price target of $25.50.

In related news, CFO Frank Mergenthaler sold 50,000 shares of the business’s stock in a transaction on Tuesday, August 21st. The stock was sold at an average price of $22.46, for a total value of $1,123,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.49% of the company’s stock.

Several large investors have recently added to or reduced their stakes in the company. BancorpSouth Bank lifted its position in shares of Interpublic Group of Companies by 12.4% during the 2nd quarter. BancorpSouth Bank now owns 20,613 shares of the business services provider’s stock valued at $483,000 after acquiring an additional 2,271 shares during the period. Commonwealth Bank of Australia lifted its position in shares of Interpublic Group of Companies by 5.4% during the 2nd quarter. Commonwealth Bank of Australia now owns 49,566 shares of the business services provider’s stock valued at $1,157,000 after acquiring an additional 2,554 shares during the period. Macquarie Group Ltd. lifted its position in shares of Interpublic Group of Companies by 0.6% during the 2nd quarter. Macquarie Group Ltd. now owns 476,222 shares of the business services provider’s stock valued at $11,163,000 after acquiring an additional 2,754 shares during the period. Alpha Windward LLC lifted its position in shares of Interpublic Group of Companies by 12.4% during the 3rd quarter. Alpha Windward LLC now owns 25,492 shares of the business services provider’s stock valued at $583,000 after acquiring an additional 2,820 shares during the period. Finally, State of Alaska Department of Revenue lifted its position in shares of Interpublic Group of Companies by 3.5% during the 3rd quarter. State of Alaska Department of Revenue now owns 92,072 shares of the business services provider’s stock valued at $2,103,000 after acquiring an additional 3,129 shares during the period. Hedge funds and other institutional investors own 99.77% of the company’s stock.

The stock has a market cap of $8.52 billion, a price-to-earnings ratio of 16.53, a price-to-earnings-growth ratio of 1.82 and a beta of 1.17. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.61.

Interpublic Group of Companies Company Profile (NYSE:IPG)

The Interpublic Group of Companies, Inc provides advertising and marketing services worldwide. The company operates through two segments, Integrated Agency Networks and Constituency Management Group. It offers consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines.

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