Omnicom Group (NYSE:OMC) Rating Lowered to Strong Sell at Zacks Research

Omnicom Group (NYSE:OMC) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Thursday,Zacks.com reports.

Several other equities analysts have also recently issued reports on the stock. Morgan Stanley boosted their price target 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. Citigroup lowered their price objective on shares of Omnicom Group from $105.00 to $100.00 and set a “buy” rating for the company in a report on Thursday. Wells Fargo & Company lifted their price objective on Omnicom Group from $91.00 to $93.00 and gave the company an “overweight” rating in a research report on Thursday. Weiss Ratings upgraded Omnicom Group from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday. Finally, The Goldman Sachs Group started coverage on Omnicom Group in a research report on Wednesday, June 3rd. They issued a “buy” rating and a $146.00 target price for the company. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $99.00.

Omnicom Group Stock Down 0.9%

Shares of Omnicom Group stock opened at $78.86 on Thursday. The company has a current ratio of 0.92, a quick ratio of 0.77 and a debt-to-equity ratio of 0.97. The company’s fifty day simple moving average is $77.29 and its two-hundred day simple moving average is $76.89. The company has a market cap of $21.64 billion, a P/E ratio of 67.98, a PEG ratio of 0.53 and a beta of 0.63. Omnicom Group has a 12-month low of $66.33 and a 12-month high of $87.41.

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

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of OMC. Wakefield Asset Management LLLP boosted its stake in Omnicom Group by 2.6% during the fourth quarter. Wakefield Asset Management LLLP now owns 5,910 shares of the business services provider’s stock worth $477,000 after acquiring an additional 149 shares in the last quarter. Caldwell Trust Co grew its holdings in Omnicom Group by 29.0% in the first 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 period. SJS Investment Consulting Inc. increased its stake in shares of Omnicom Group by 39.1% during the first quarter. SJS Investment Consulting Inc. now owns 544 shares of the business services provider’s stock valued at $41,000 after purchasing an additional 153 shares in the last quarter. Hartford Financial Management Inc. increased its stake in shares of Omnicom Group by 27.0% during the fourth quarter. Hartford Financial Management Inc. now owns 762 shares of the business services provider’s stock valued at $62,000 after purchasing an additional 162 shares in the last quarter. Finally, Blake Schutter Theil Wealth Advisors LLC lifted its holdings in shares of Omnicom Group by 3.5% during 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 purchasing an additional 167 shares during the last quarter. 91.97% of the stock is owned by hedge funds and other institutional investors.

Key Omnicom Group News

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

About Omnicom Group

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.