Interpublic Group of Companies (IPG) Trading Up 9.7% on Earnings Beat

Shares of Interpublic Group of Companies Inc (NYSE:IPG) were up 9.7% on Friday following a stronger than expected earnings report. The stock traded as high as $24.95 and last traded at $24.65. Approximately 13,172,456 shares traded hands during mid-day trading, an increase of 183% from the average daily volume of 4,655,455 shares. The stock had previously closed at $22.48.

The business services provider reported $0.48 EPS for the quarter, beating analysts’ consensus estimates of $0.46 by $0.02. Interpublic Group of Companies had a return on equity of 28.53% and a net margin of 6.75%. The company had revenue of $1.90 billion during the quarter, compared to the consensus estimate of $1.88 billion. During the same quarter in the prior year, the firm earned $0.31 EPS. The company’s quarterly revenue was up 3.5% compared to the same quarter last year.

A number of equities research analysts have recently commented on IPG shares. Royal Bank of Canada upgraded Interpublic Group of Companies from a “sector perform” rating to an “outperform” rating in a research report on Wednesday, July 25th. ValuEngine downgraded Interpublic Group of Companies from a “hold” rating to a “sell” rating in a research report on Monday, July 2nd. Zacks Investment Research upgraded Interpublic Group of Companies from a “sell” rating to a “hold” rating in a research report on Wednesday, August 8th. Macquarie upgraded Interpublic Group of Companies from a “neutral” rating to an “outperform” rating and increased their price objective for the company from $24.00 to $25.00 in a research report on Thursday, September 20th. Finally, JPMorgan Chase & Co. started coverage on Interpublic Group of Companies in a research report on Thursday, October 11th. They set an “overweight” rating for the company. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and five have assigned a buy rating to the company. Interpublic Group of Companies presently has an average rating of “Hold” and an average target price of $25.50.

In other news, CFO Frank Mergenthaler sold 50,000 shares of the stock in a transaction on Tuesday, August 21st. The stock was sold at an average price of $22.46, for a total value of $1,123,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 1.49% of the stock is owned by corporate insiders.

Several institutional investors and hedge funds have recently added to or reduced their stakes in IPG. LifePlan Financial Group Inc purchased a new stake in shares of Interpublic Group of Companies in the second quarter valued at $187,000. Lourd Capital LLC purchased a new stake in shares of Interpublic Group of Companies in the third quarter valued at $203,000. Nuveen Asset Management LLC purchased a new stake in shares of Interpublic Group of Companies in the first quarter valued at $281,000. Quantitative Systematic Strategies LLC purchased a new stake in shares of Interpublic Group of Companies in the second quarter valued at $283,000. Finally, Barings LLC purchased a new stake in shares of Interpublic Group of Companies in the second quarter valued at $309,000. Institutional investors own 99.77% of the company’s stock.

The firm has a market cap of $8.63 billion, a PE ratio of 17.48, a price-to-earnings-growth ratio of 1.84 and a beta of 1.17. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.61.

About Interpublic Group of Companies (NYSE:IPG)

The Interpublic Group of Companies, Inc provides advertising and marketing services worldwide. The company operates through two segments, Integrated Agency Networks and Constituency Management Group. It offers consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines.

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