Omnicom Group (NYSE:OMC) Downgraded by ValuEngine

ValuEngine downgraded shares of Omnicom Group (NYSE:OMC) from a hold rating to a sell rating in a research report report published on Thursday morning, ValuEngine reports.

OMC has been the subject of several other research reports. BMO Capital Markets cut Omnicom Group from an outperform rating to a market perform rating and cut their price target for the company from $88.00 to $86.00 in a report on Sunday, July 14th. Barclays reaffirmed a hold rating and issued a $85.00 price target on shares of Omnicom Group in a report on Sunday, July 21st. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and one has issued a buy rating to the stock. The stock has a consensus rating of Hold and an average target price of $80.33.

Shares of Omnicom Group stock traded down $0.68 during mid-day trading on Thursday, reaching $78.57. 1,482,164 shares of the stock traded hands, compared to its average volume of 2,063,971. The company has a 50-day moving average price of $81.83. Omnicom Group has a fifty-two week low of $65.85 and a fifty-two week high of $85.05. The stock has a market capitalization of $17.24 billion, a PE ratio of 13.66, a PEG ratio of 2.59 and a beta of 0.71. The company has a quick ratio of 0.76, a current ratio of 0.85 and a debt-to-equity ratio of 1.81.

Omnicom Group (NYSE:OMC) last posted its quarterly earnings results on Wednesday, July 17th. The business services provider reported $1.68 EPS for the quarter, beating the consensus estimate of $1.61 by $0.07. Omnicom Group had a return on equity of 43.86% and a net margin of 8.89%. The firm had revenue of $3.72 billion during the quarter, compared to analysts’ expectations of $3.72 billion. During the same quarter last year, the firm earned $1.60 earnings per share. The business’s revenue for the quarter was down 3.6% on a year-over-year basis. As a group, analysts forecast that Omnicom Group will post 6.05 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 10th. Investors of record on Friday, September 20th will be issued a $0.65 dividend. The ex-dividend date of this dividend is Thursday, September 19th. This represents a $2.60 annualized dividend and a dividend yield of 3.31%. Omnicom Group’s dividend payout ratio is presently 45.22%.

In other Omnicom Group news, SVP Andrew Castellaneta sold 2,000 shares of the firm’s stock in a transaction on Friday, July 19th. The stock was sold at an average price of $80.16, for a total transaction of $160,320.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman John Wren sold 60,541 shares of the firm’s stock in a transaction on Wednesday, May 22nd. The stock was sold at an average price of $79.84, for a total value of $4,833,593.44. The disclosure for this sale can be found here. 1.10% of the stock is currently owned by company insiders.

A number of hedge funds have recently bought and sold shares of OMC. Ceredex Value Advisors LLC acquired a new stake in Omnicom Group during the first quarter worth $135,975,000. Amundi Pioneer Asset Management Inc. increased its stake in Omnicom Group by 301.3% during the first quarter. Amundi Pioneer Asset Management Inc. now owns 1,899,092 shares of the business services provider’s stock worth $138,615,000 after acquiring an additional 1,425,817 shares during the last quarter. Jensen Investment Management Inc. increased its stake in Omnicom Group by 23.7% during the second quarter. Jensen Investment Management Inc. now owns 3,362,378 shares of the business services provider’s stock worth $275,547,000 after acquiring an additional 645,094 shares during the last quarter. Bessemer Group Inc. boosted its position in shares of Omnicom Group by 2,444.6% during the second quarter. Bessemer Group Inc. now owns 657,426 shares of the business services provider’s stock worth $53,876,000 after buying an additional 631,590 shares during the period. Finally, Geode Capital Management LLC boosted its position in shares of Omnicom Group by 18.3% during the fourth quarter. Geode Capital Management LLC now owns 3,852,265 shares of the business services provider’s stock worth $281,767,000 after buying an additional 597,017 shares during the period.

About Omnicom Group

Omnicom Group Inc, together with its subsidiaries, provides advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising, customer relationship management, public relations, and healthcare. The company's services include advertising, branding, content marketing, corporate social responsibility consulting, crisis communications, custom publishing, data analytics, database management, digital/direct marketing, digital transformation, entertainment marketing, experiential marketing, field marketing, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and in-store design services.

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