Omnicom Group (NYSE:OMC) Shares Down 3.9% on Analyst Downgrade

Omnicom Group Inc. (NYSE:OMC)’s share price fell 3.9% during trading on Thursday after Wells Fargo & Company lowered their price target on the stock from $84.00 to $78.00. Wells Fargo & Company currently has an equal weight rating on the stock. Omnicom Group traded as low as $70.94 and last traded at $71.18. 3,207,440 shares traded hands during mid-day trading, an increase of 18% from the average session volume of 2,724,180 shares. The stock had previously closed at $74.05.

Several other equities research analysts also recently commented on OMC. UBS Group dropped their target price on Omnicom Group from $117.00 to $104.00 and set a “buy” rating on the stock in a report on Thursday, March 20th. Citigroup reissued a “buy” rating and issued a $103.00 target price on shares of Omnicom Group in a report on Tuesday, April 15th. Barclays downgraded Omnicom Group from an “overweight” rating to an “equal weight” rating and lowered their price target for the company from $105.00 to $80.00 in a report on Wednesday, June 25th. Bank of America raised Omnicom Group from an “underperform” rating to a “neutral” rating and set a $80.00 price target on the stock in a report on Monday, June 23rd. Finally, JPMorgan Chase & Co. lowered their price target on Omnicom Group from $104.00 to $96.00 and set an “overweight” rating on the stock in a report on Thursday, July 10th. Four analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $94.43.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Johnson Financial Group Inc. increased its position in Omnicom Group by 153.8% in the fourth quarter. Johnson Financial Group Inc. now owns 330 shares of the business services provider’s stock worth $29,000 after buying an additional 200 shares in the last quarter. Zions Bancorporation National Association UT purchased a new stake in shares of Omnicom Group during the first quarter worth about $34,000. Gen Wealth Partners Inc purchased a new stake in shares of Omnicom Group during the first quarter worth about $36,000. Versant Capital Management Inc grew its position in shares of Omnicom Group by 45.7% during the first quarter. Versant Capital Management Inc now owns 456 shares of the business services provider’s stock worth $38,000 after purchasing an additional 143 shares in the last quarter. Finally, CoreCap Advisors LLC grew its position in shares of Omnicom Group by 708.8% during the fourth quarter. CoreCap Advisors LLC now owns 461 shares of the business services provider’s stock worth $40,000 after purchasing an additional 404 shares in the last quarter. Institutional investors own 91.97% of the company’s stock.

Omnicom Group Stock Performance

The business has a 50 day moving average of $72.96 and a 200 day moving average of $78.14. The company has a market capitalization of $13.81 billion, a P/E ratio of 10.16, a price-to-earnings-growth ratio of 1.62 and a beta of 0.92. The company has a quick ratio of 0.87, a current ratio of 1.01 and a debt-to-equity ratio of 1.24.

Omnicom Group (NYSE:OMC) last announced its quarterly earnings results on Tuesday, July 15th. The business services provider reported $2.05 EPS for the quarter, beating analysts’ consensus estimates of $2.02 by $0.03. Omnicom Group had a return on equity of 34.16% and a net margin of 8.67%. The company had revenue of $4.02 billion during the quarter, compared to analyst estimates of $3.95 billion. During the same period in the prior year, the company earned $1.95 earnings per share. The firm’s revenue was up 4.2% on a year-over-year basis. On average, sell-side analysts predict that Omnicom Group Inc. will post 8.25 earnings per share for the current year.

Omnicom Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Tuesday, September 2nd will be paid a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 3.95%. Omnicom Group’s payout ratio is presently 40.17%.

About Omnicom Group

Omnicom Group Inc, together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, public relations, and healthcare.