Omnicom Group Inc. (OMC) Downgraded by Zacks Investment Research to “Sell”

Omnicom Group Inc. (NYSE:OMC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.

According to Zacks, “A significant portion of Omnicom’s revenues comes from Europe. In the present scenario, when the economy in the region is highly unpredictable particularly after the Brexit referendum, it becomes difficult for the company to increase revenues and reduce costs. Brexit could further result in higher tariff and non-tariff barriers to trade, lowering its productivity. In addition, a competitive and fragmented communications services industry coupled with high susceptibility to concentration risks pose a threat to Omnicom’s profitability. Moreover, as Omnicom expands internationally, it highly exposes itself to risks from foreign exchange barriers and uncertainty from monetary devaluation. However, increasing demand for Omnicom’s media services, speedy growth of technologies and massive proliferation of channels are likely to improve the top line in future. The company outperformed the industry year to date.”

Several other research firms have also issued reports on OMC. Royal Bank Of Canada set a $96.00 target price on shares of Omnicom Group and gave the stock a “buy” rating in a research note on Saturday, July 22nd. Wells Fargo & Company reiterated a “hold” rating and issued a $84.00 target price on shares of Omnicom Group in a research note on Tuesday, July 18th. Jefferies Group LLC restated a “hold” rating and set a $82.00 price target on shares of Omnicom Group in a research report on Friday, July 14th. Credit Suisse Group restated a “neutral” rating and set a $79.00 price target (down previously from $81.00) on shares of Omnicom Group in a research report on Friday, July 14th. Finally, BidaskClub lowered shares of Omnicom Group from a “hold” rating to a “sell” rating in a research report on Wednesday, July 12th. Three investment analysts have rated the stock with a sell rating, twelve have given a hold rating and one has given a buy rating to the stock. Omnicom Group presently has an average rating of “Hold” and a consensus target price of $85.92.

Omnicom Group (NYSE:OMC) traded up 0.08% during mid-day trading on Tuesday, hitting $74.73. 375,417 shares of the stock were exchanged. Omnicom Group has a 52 week low of $71.63 and a 52 week high of $89.66. The company has a market capitalization of $17.24 billion, a PE ratio of 15.09 and a beta of 1.28. The stock’s 50-day moving average is $73.98 and its 200 day moving average is $80.23.

Omnicom Group (NYSE:OMC) last posted its earnings results on Thursday, July 20th. The business services provider reported $1.40 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.38 by $0.02. Omnicom Group had a net margin of 7.61% and a return on equity of 42.54%. The firm had revenue of $3.79 billion during the quarter, compared to analyst estimates of $3.74 billion. During the same quarter in the prior year, the business posted $1.36 EPS. The business’s revenue was down 2.4% compared to the same quarter last year. On average, analysts anticipate that Omnicom Group will post $5.08 EPS for the current year.

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In other Omnicom Group news, Director Linda Johnson Rice sold 483 shares of the stock in a transaction dated Monday, July 24th. The shares were sold at an average price of $82.19, for a total transaction of $39,697.77. Following the completion of the transaction, the director now owns 7,724 shares in the company, valued at $634,835.56. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Treasurer Dennis E. Hewitt sold 900 shares of the stock in a transaction dated Wednesday, July 26th. The stock was sold at an average price of $79.11, for a total transaction of $71,199.00. Following the transaction, the treasurer now owns 44,161 shares of the company’s stock, valued at approximately $3,493,576.71. The disclosure for this sale can be found here. 1.10% of the stock is owned by company insiders.

Large investors have recently modified their holdings of the business. Dupont Capital Management Corp bought a new position in Omnicom Group during the second quarter worth about $104,000. Parallel Advisors LLC boosted its position in Omnicom Group by 8.7% during the second quarter. Parallel Advisors LLC now owns 1,300 shares of the business services provider’s stock worth $102,000 after purchasing an additional 104 shares during the period. Acrospire Investment Management LLC bought a new position in Omnicom Group during the second quarter worth about $149,000. Invictus RG boosted its position in Omnicom Group by 1,098.2% during the first quarter. Invictus RG now owns 1,977 shares of the business services provider’s stock worth $170,000 after purchasing an additional 1,812 shares during the period. Finally, FNY Partners Fund LP boosted its position in Omnicom Group by 46.7% during the first quarter. FNY Partners Fund LP now owns 2,200 shares of the business services provider’s stock worth $189,000 after purchasing an additional 700 shares during the period. Hedge funds and other institutional investors own 98.60% of the company’s stock.

Omnicom Group Company Profile

Omnicom Group Inc is a holding company. The Company provides advertising, marketing and corporate communications services. The Company’s branded networks and agencies operate in all markets around the world and provide a range of services, which it groups into four disciplines: advertising, customer relationship management (CRM), public relations and specialty communications.

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