Omnicom Group (NYSE:OMC) Trading 4.2% Higher After Better-Than-Expected Earnings

Shares of Omnicom Group Inc. (NYSE:OMC) traded up 4.2% during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $82.50 and last traded at $82.02. 3,253,053 shares were traded during trading, a decline of 11% from the average session volume of 3,651,750 shares. The stock had previously closed at $78.71.

The business services provider reported $2.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.17 by $0.07. Omnicom Group had a net margin of 8.31% and a return on equity of 33.66%. The company had revenue of $4.04 billion for the quarter, compared to analyst estimates of $4.02 billion. During the same period in the prior year, the business earned $2.03 EPS. The firm’s quarterly revenue was up 4.0% on a year-over-year basis.

Analyst Ratings Changes

OMC has been the topic of a number of recent analyst reports. Wells Fargo & Company raised shares of Omnicom Group from an “equal weight” rating to an “overweight” rating and increased their price objective for the company from $78.00 to $91.00 in a research report on Tuesday, September 23rd. Barclays downgraded shares of Omnicom Group from an “overweight” rating to an “equal weight” rating and dropped their price objective for the company from $105.00 to $80.00 in a research report on Wednesday, June 25th. Weiss Ratings reissued a “hold (c)” rating on shares of Omnicom Group in a research report on Wednesday, October 8th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Omnicom Group from $104.00 to $96.00 and set an “overweight” rating on the stock in a research report on Thursday, July 10th. Five research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $96.29.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of OMC. Capital A Wealth Management LLC grew its position in Omnicom Group by 548.3% during the 2nd quarter. Capital A Wealth Management LLC now owns 376 shares of the business services provider’s stock worth $27,000 after purchasing an additional 318 shares during the last quarter. Harbor Asset Planning Inc. purchased a new position in Omnicom Group during the 2nd quarter worth $29,000. Zions Bancorporation National Association UT purchased a new position in Omnicom Group during the 1st quarter worth $34,000. Ameritas Advisory Services LLC purchased a new position in Omnicom Group during the 2nd quarter worth $34,000. Finally, Gen Wealth Partners Inc purchased a new position in Omnicom Group during the 1st quarter worth $36,000. 91.97% of the stock is owned by hedge funds and other institutional investors.

Omnicom Group Price Performance

The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.80 and a current ratio of 0.92. The company has a market capitalization of $15.70 billion, a PE ratio of 11.97, a P/E/G ratio of 1.54 and a beta of 0.96. The company’s 50-day simple moving average is $77.70 and its 200-day simple moving average is $74.99.

Omnicom Group Company Profile

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.