Omnicom Group (NYSE:OMC) Shares Down 5.1% – What’s Next?

Omnicom Group Inc. (NYSE:OMC) shares traded down 5.1% on Wednesday . The stock traded as low as $80.54 and last traded at $81.6920. 2,887,079 shares were traded during trading, a decline of 32% from the average daily volume of 4,252,755 shares. The stock had previously closed at $86.09.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. Zacks Research downgraded shares of Omnicom Group from a “hold” rating to a “strong sell” rating in a research report on Thursday, July 30th. Citigroup lowered their price target on Omnicom Group from $105.00 to $100.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Weiss Ratings raised Omnicom Group from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, July 30th. Wells Fargo & Company lifted their price objective on Omnicom Group from $91.00 to $93.00 and gave the stock an “overweight” rating in a report on Thursday, July 30th. Finally, The Goldman Sachs Group began coverage on Omnicom Group in a report on Wednesday, June 3rd. They issued a “buy” rating and a $146.00 target price on the stock. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $99.00.

Omnicom Group Price Performance

The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.78 and a current ratio of 0.92. The stock has a market capitalization of $23.21 billion, a price-to-earnings ratio of 72.94, a P/E/G ratio of 0.70 and a beta of 0.65. The company has a 50-day moving average of $82.65 and a 200-day moving average of $78.67.

Omnicom Group (NYSE:OMC) last announced its earnings results on Tuesday, July 28th. The business services provider reported $2.65 EPS for the quarter, missing analysts’ consensus estimates of $2.67 by ($0.02). Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. The company had revenue of $6.56 billion for the quarter, compared to analyst estimates of $6.44 billion. During the same quarter last year, the company posted $2.05 EPS. Omnicom Group’s quarterly revenue was up 63.4% compared to the same quarter last year. As a group, equities research analysts expect that Omnicom Group Inc. will post 10.35 earnings per share for the current fiscal year.

Omnicom Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Friday, September 18th will be given a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date is Friday, September 18th. Omnicom Group’s dividend payout ratio (DPR) is currently 275.86%.

Insiders Place Their Bets

In other Omnicom Group news, Director Linda Rice sold 1,385 shares of the company’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $88.73, for a total value of $122,891.05. Following the transaction, the director directly owned 11,719 shares in the company, valued at approximately $1,039,826.87. This represents a 10.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.20% of the company’s stock.

Institutional Investors Weigh In On Omnicom Group

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Elyxium Wealth LLC acquired a new stake in shares of Omnicom Group during the fourth quarter worth $26,000. Legacy Wealth Managment LLC ID grew its holdings in Omnicom Group by 111.4% in the fourth quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider’s stock valued at $27,000 after purchasing an additional 176 shares during the period. EFG International AG acquired a new position in Omnicom Group during the fourth quarter worth approximately $28,000. Keating Financial Advisory Services Inc. acquired a new position in Omnicom Group during the second quarter worth approximately $25,000. Finally, Caitlin John LLC raised its stake in Omnicom Group by 4,675.0% during the fourth quarter. Caitlin John LLC now owns 382 shares of the business services provider’s stock worth $31,000 after purchasing an additional 374 shares during the period. 91.97% of the stock is currently owned by hedge funds and other institutional investors.

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.