Omnicom Group (NYSE:OMC) Share Price Breaks Below 200-Day Moving Average – Should You Sell?

Omnicom Group Inc. (NYSE:OMC) shares crossed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $78.22 and traded as low as $76.47. Omnicom Group shares last traded at $77.6750, with a volume of 2,406,695 shares.

Analyst Ratings Changes

Several brokerages have weighed in on OMC. Argus raised shares of Omnicom Group to a “hold” rating in a research note on Monday, September 14th. Weiss Ratings restated a “hold (c)” rating on shares of Omnicom Group in a research report on Wednesday. Wells Fargo & Company raised their price target on Omnicom Group from $93.00 to $97.00 and gave the company an “overweight” rating in a report on Friday, October 23rd. Barclays cut their price objective on Omnicom Group from $88.00 to $87.00 and set an “equal weight” rating for the company in a research report on Monday. Finally, Zacks Research raised Omnicom Group from a “strong sell” rating to a “hold” rating in a research note on Monday, September 28th. Five analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $100.67.

Omnicom Group Price Performance

The company has a quick ratio of 0.78, a current ratio of 0.91 and a debt-to-equity ratio of 0.91. The stock’s 50-day moving average price is $79.82 and its 200-day moving average price is $78.24. The company has a market capitalization of $22.18 billion, a price-to-earnings ratio of 8.20, a price-to-earnings-growth ratio of 0.75 and a beta of 0.68.

Omnicom Group (NYSE:OMC) last issued its quarterly earnings results on Thursday, October 22nd. The business services provider reported $2.73 earnings per share for the quarter, beating analysts’ consensus estimates of $2.67 by $0.06. Omnicom Group had a net margin of 2.85% and a return on equity of 24.67%. The business had revenue of $6.42 billion during the quarter, compared to analyst estimates of $6.21 billion. During the same quarter last year, the business posted $2.24 earnings per share. Omnicom Group’s revenue for the quarter was up 59.1% compared to the same quarter last year. Equities research analysts anticipate that Omnicom Group Inc. will post 10.37 earnings per share for the current year.

Insider Activity at Omnicom Group

In other news, Director Linda Rice sold 1,385 shares of Omnicom Group stock in a transaction 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 completion of the sale, the director directly owned 11,719 shares of the company’s stock, valued at approximately $1,039,826.87. This trade represents a 10.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On Omnicom Group

Several large investors have recently made changes to their positions in the company. Compass Financial Management LLC grew its stake in Omnicom Group by 41.1% in the third quarter. Compass Financial Management LLC now owns 796 shares of the business services provider’s stock valued at $59,000 after purchasing an additional 232 shares in the last quarter. Rakuten Investment Management Inc. raised its stake in shares of Omnicom Group by 7.1% during the 3rd quarter. Rakuten Investment Management Inc. now owns 49,935 shares of the business services provider’s stock worth $3,702,000 after purchasing an additional 3,320 shares in the last quarter. Provenance Wealth Advisors LLC raised its stake in shares of Omnicom Group by 1,034.8% during the 3rd quarter. Provenance Wealth Advisors LLC now owns 1,271 shares of the business services provider’s stock worth $94,000 after purchasing an additional 1,159 shares in the last quarter. GRIMES & Co WEALTH MANAGEMENT LLC raised its stake in shares of Omnicom Group by 4.0% during the 3rd quarter. GRIMES & Co WEALTH MANAGEMENT LLC now owns 65,927 shares of the business services provider’s stock worth $4,854,000 after purchasing an additional 2,565 shares in the last quarter. Finally, True Freedom Investing LLC boosted its holdings in shares of Omnicom Group by 8.3% in the 3rd quarter. True Freedom Investing LLC now owns 72,642 shares of the business services provider’s stock valued at $5,349,000 after buying an additional 5,595 shares during the last quarter. Institutional investors and hedge funds own 91.97% of the company’s stock.

About Omnicom Group

Omnicom Group Inc is a global marketing and communications company that provides advertising, media, branding, public relations, customer relationship management, and digital marketing services. The company works with organizations across industries to develop brand strategies, create content, manage media campaigns, and engage customers through traditional and digital channels.

Omnicom operates through a network of independently branded agencies, including BBDO Worldwide, DDB Worldwide, TBWA Worldwide, Omnicom Media Group, FleishmanHillard, Ketchum, Porter Novelli, RAPP, and several specialized healthcare, experiential, and data-driven marketing agencies.