Omnicom Group (NYSE:OMC) Downgraded by Zacks Research to Strong Sell

Zacks Research lowered shares of Omnicom Group (NYSE:OMC) from a hold rating to a strong sell rating in a report published on Thursday,Zacks.com reports.

Other equities analysts have also issued reports about the stock. Citigroup dropped their price target on shares of Omnicom Group from $105.00 to $100.00 and set a “buy” rating for the company in a research report on Thursday. Morgan Stanley raised their price objective on shares of Omnicom Group from $82.00 to $83.00 and gave the company an “equal weight” rating in a research report on Friday, May 1st. Rothschild & Co Redburn began coverage on shares of Omnicom Group in a report on Thursday, May 28th. They issued a “neutral” rating and a $89.00 target price for the company. Wells Fargo & Company raised their price target on Omnicom Group from $91.00 to $93.00 and gave the company an “overweight” rating in a report on Thursday. Finally, Weiss Ratings raised shares of Omnicom Group from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday. Four investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Omnicom Group has a consensus rating of “Hold” and a consensus target price of $99.00.

Omnicom Group Stock Performance

Shares of OMC opened at $78.86 on Thursday. The business has a 50-day simple moving average of $77.29 and a two-hundred day simple moving average of $76.89. The company has a quick ratio of 0.77, a current ratio of 0.92 and a debt-to-equity ratio of 0.97. Omnicom Group has a 52 week low of $66.33 and a 52 week high of $87.41. The stock has a market cap of $21.64 billion, a price-to-earnings ratio of 67.98, a PEG ratio of 0.53 and a beta of 0.63.

Omnicom Group (NYSE:OMC) last announced its quarterly earnings data on Tuesday, July 28th. The business services provider reported $2.65 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.67 by ($0.02). The company had revenue of $6.56 billion for the quarter, compared to the consensus estimate of $6.44 billion. Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. The company’s revenue was up 63.4% compared to the same quarter last year. During the same quarter last year, the firm posted $2.05 earnings per share. On average, analysts expect that Omnicom Group will post 10.35 EPS for the current year.

Omnicom Group Dividend Announcement

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 of this dividend is Friday, September 18th. This represents a $3.20 dividend on an annualized basis and a yield of 4.1%. Omnicom Group’s payout ratio is presently 275.86%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of OMC. Wakefield Asset Management LLLP lifted its position in shares of Omnicom Group by 2.6% during the 4th quarter. Wakefield Asset Management LLLP now owns 5,910 shares of the business services provider’s stock valued at $477,000 after buying an additional 149 shares in the last quarter. Caldwell Trust Co raised its position in shares of Omnicom Group by 29.0% during the 1st quarter. Caldwell Trust Co now owns 662 shares of the business services provider’s stock worth $50,000 after purchasing an additional 149 shares during the last quarter. SJS Investment Consulting Inc. raised its position in shares of Omnicom Group by 39.1% during the 1st quarter. SJS Investment Consulting Inc. now owns 544 shares of the business services provider’s stock worth $41,000 after purchasing an additional 153 shares during the last quarter. Hartford Financial Management Inc. lifted its stake in Omnicom Group by 27.0% in the 4th quarter. Hartford Financial Management Inc. now owns 762 shares of the business services provider’s stock valued at $62,000 after buying an additional 162 shares in the last quarter. Finally, Blake Schutter Theil Wealth Advisors LLC lifted its position in shares of Omnicom Group by 3.5% in the fourth quarter. Blake Schutter Theil Wealth Advisors LLC now owns 4,897 shares of the business services provider’s stock valued at $395,000 after acquiring an additional 167 shares in the last quarter. 91.97% of the stock is currently owned by institutional investors.

Omnicom Group News Roundup

Here are the key news stories impacting Omnicom Group this week:

• Positive Sentiment: Wells Fargo raised its price target for Omnicom Group to $93 from $91 and maintained an “overweight” rating, citing potential upside from the company’s operating outlook. Wells Fargo price-target update
• Positive Sentiment: Citigroup lowered its target to $100 from $105 but retained a “buy” rating. The reduced target still implies substantial upside and suggests analysts view the recent weakness as an opportunity rather than a fundamental break in the investment case. Citigroup price-target update
• Positive Sentiment: Analysts highlighted Omnicom’s data and analytics investments, integrated media capabilities and merger-related cost synergies as potential drivers of longer-term revenue growth and profitability. Omnicom data and analytics outlook
• Neutral Sentiment: Omnicom’s latest quarter produced $6.56 billion in revenue, above the $6.44 billion consensus and up 63.4% year over year, while EPS of $2.65 narrowly missed the $2.67 estimate. The mixed result helps explain why strong sales growth has not translated into a clear stock catalyst. Omnicom Q2 earnings call highlights
• Neutral Sentiment: International revenue remains an important factor in Wall Street’s forecasts, making foreign-market performance and currency or regional risks relevant to the stock’s outlook. Omnicom international revenue analysis
• Negative Sentiment: Investors remain concerned about higher debt, integration expenses and margin pressure following the merger. Analysts have also trimmed estimates, creating uncertainty over how quickly anticipated synergies will improve earnings. Omnicom valuation analysis
• Negative Sentiment: Some commentary argues that OMC’s valuation and recent multiyear gains leave the shares vulnerable to profit-taking if organic growth or post-merger execution disappoints. Omnicom valuation commentary

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.