Omnicom Group Inc. (OMC) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research downgraded shares of Omnicom Group Inc. (NYSE:OMC) from a buy rating to a hold rating in a report issued on Wednesday, October 18th.

According to Zacks, “Omnicom reported relatively healthy third-quarter 2017 results with earnings beating the Zacks Consensus Estimate by 3 cents on modest organic growth. Omnicom maintains a balanced growth model through a combination of well-focused internal development initiatives and strategic acquisitions. Increasing demand for media services and massive proliferation of channels are likely to improve the top line in future. Omnicom has outperformed the industry year to date. However, a competitive and fragmented communications services industry coupled with high susceptibility to concentration risks pose a threat to Omnicom’s profitability. Post 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 between the U.K. and the European Union, lowering its productivity.”

Other equities analysts have also issued reports about the stock. Royal Bank Of Canada set a $96.00 price objective on Omnicom Group and gave the company a buy rating in a report on Saturday, July 22nd. BidaskClub downgraded Omnicom Group from a hold rating to a sell rating in a report on Wednesday, July 12th. Jefferies Group LLC reissued a hold rating and issued a $82.00 price objective on shares of Omnicom Group in a report on Friday, July 14th. Telsey Advisory Group raised Omnicom Group from a market perform rating to an outperform rating and increased their price objective for the company from $86.00 to $89.00 in a report on Wednesday, October 18th. Finally, BMO Capital Markets reissued a hold rating and issued a $85.00 price objective on shares of Omnicom Group in a report on Wednesday, September 13th. Three equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and two have issued a buy rating to the company’s stock. Omnicom Group presently has a consensus rating of Hold and an average price target of $84.00.

Shares of Omnicom Group (NYSE:OMC) traded down 2.56% on Wednesday, hitting $68.56. 3,712,329 shares of the stock were exchanged. The company’s 50 day moving average is $73.83 and its 200-day moving average is $79.07. Omnicom Group has a 52-week low of $68.00 and a 52-week high of $89.66. The stock has a market cap of $15.82 billion, a PE ratio of 13.64 and a beta of 1.28.

Omnicom Group (NYSE:OMC) last released its earnings results on Tuesday, October 17th. The business services provider reported $1.13 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.10 by $0.03. Omnicom Group had a net margin of 7.72% and a return on equity of 42.11%. The firm had revenue of $3.72 billion for the quarter, compared to analyst estimates of $3.69 billion. During the same period in the prior year, the firm earned $1.06 earnings per share. The business’s quarterly revenue was down 1.9% compared to the same quarter last year. Analysts predict that Omnicom Group will post $5.11 EPS for the current fiscal year.

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In other news, Director Linda Johnson Rice sold 489 shares of the firm’s stock in a transaction on Thursday, October 19th. The stock was sold at an average price of $74.32, for a total value of $36,342.48. Following the completion of the transaction, the director now owns 7,777 shares in the company, valued at $577,986.64. The sale was disclosed in a document filed with the SEC, which is available at this link. Company insiders own 1.10% of the company’s stock.

A number of institutional investors have recently bought and sold shares of OMC. BlackRock Inc. grew its holdings in Omnicom Group by 3,091.8% in the 1st quarter. BlackRock Inc. now owns 17,041,057 shares of the business services provider’s stock valued at $1,469,108,000 after buying an additional 16,507,161 shares during the period. Janus Henderson Group PLC grew its holdings in Omnicom Group by 15,279.3% in the 2nd quarter. Janus Henderson Group PLC now owns 4,996,274 shares of the business services provider’s stock valued at $414,191,000 after buying an additional 4,963,787 shares during the period. Beutel Goodman & Co Ltd. purchased a new stake in Omnicom Group in the 2nd quarter valued at about $153,358,000. Nordea Investment Management AB grew its holdings in Omnicom Group by 501.5% in the 2nd quarter. Nordea Investment Management AB now owns 2,201,826 shares of the business services provider’s stock valued at $182,531,000 after buying an additional 1,835,749 shares during the period. Finally, Alliancebernstein L.P. grew its holdings in Omnicom Group by 90.0% in the 2nd quarter. Alliancebernstein L.P. now owns 2,652,302 shares of the business services provider’s stock valued at $219,876,000 after buying an additional 1,256,005 shares during the period. Hedge funds and other institutional investors own 98.93% 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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Analyst Recommendations for Omnicom Group (NYSE:OMC)

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