Omnicom Group (NYSE:OMC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The brokerage currently has a $82.00 price target on the business services provider’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 13.20% from the stock’s previous close.
According to Zacks, “Omnicom is concentrating on strengthening its business and expanding its client base globally through acquisition of complementary companies. The company maintains a balanced growth model through a combination of well-focused internal development initiatives and strategic acquisitions. We expect the company to witness higher revenues in the future on the back of prudent acquisitions and organic growth. Omnicom is expanding its global footprint and is moving into new service areas. It is building upon its digital and analytical capabilities by investing in agencies and partnering with innovative technology companies in key markets. The stock has also outperformed the industry in the past three months. However, the company is highly exposed to risks from foreign exchange barriers and uncertainty from monetary devaluation.”
A number of other research firms have also commented on OMC. TheStreet raised Omnicom Group from a “c+” rating to a “b-” rating in a research note on Tuesday, February 13th. Wells Fargo reaffirmed a “hold” rating and set a $80.00 price objective on shares of Omnicom Group in a research note on Friday, February 16th. Pivotal Research decreased their price objective on Omnicom Group from $76.00 to $75.00 and set a “hold” rating on the stock in a research note on Thursday, February 15th. Royal Bank of Canada lowered Omnicom Group from an “outperform” rating to a “sector perform” rating and set a $83.00 price objective on the stock. in a research note on Friday, February 16th. Finally, BMO Capital Markets raised Omnicom Group from a “market perform” rating to an “outperform” rating and increased their price objective for the company from $80.00 to $90.00 in a research note on Friday, February 16th. They noted that the move was a valuation call. Three investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and four have assigned a buy rating to the stock. Omnicom Group currently has an average rating of “Hold” and a consensus price target of $82.69.
Omnicom Group (NYSE:OMC) last posted its earnings results on Thursday, February 15th. The business services provider reported $1.55 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.54 by $0.01. The company had revenue of $4.18 billion for the quarter, compared to analyst estimates of $4.21 billion. Omnicom Group had a return on equity of 40.67% and a net margin of 7.12%. Omnicom Group’s revenue was down 1.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.47 earnings per share. equities research analysts forecast that Omnicom Group will post 5.6 EPS for the current fiscal year.
In related news, Treasurer Dennis E. Hewitt sold 2,000 shares of the stock in a transaction dated Thursday, February 22nd. The stock was sold at an average price of $77.38, for a total transaction of $154,760.00. Following the transaction, the treasurer now directly owns 42,561 shares in the company, valued at $3,293,370.18. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.10% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sei Investments Co. raised its holdings in shares of Omnicom Group by 36.6% in the 3rd quarter. Sei Investments Co. now owns 30,165 shares of the business services provider’s stock worth $2,235,000 after purchasing an additional 8,077 shares during the period. New York State Common Retirement Fund raised its holdings in shares of Omnicom Group by 1.3% in the 3rd quarter. New York State Common Retirement Fund now owns 583,468 shares of the business services provider’s stock worth $43,217,000 after purchasing an additional 7,396 shares during the period. Russell Investments Group Ltd. raised its holdings in shares of Omnicom Group by 11.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 571,388 shares of the business services provider’s stock worth $42,323,000 after purchasing an additional 60,831 shares during the period. SG Americas Securities LLC raised its holdings in shares of Omnicom Group by 25.0% in the 3rd quarter. SG Americas Securities LLC now owns 24,544 shares of the business services provider’s stock worth $1,818,000 after purchasing an additional 4,908 shares during the period. Finally, Ameriprise Financial Inc. raised its holdings in shares of Omnicom Group by 18.4% in the 3rd quarter. Ameriprise Financial Inc. now owns 575,634 shares of the business services provider’s stock worth $42,654,000 after purchasing an additional 89,524 shares during the period. Hedge funds and other institutional investors own 98.62% of the company’s stock.
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About Omnicom Group
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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