Citigroup Lowers Omnicom Group (NYSE:OMC) Price Target to $105.00

Omnicom Group (NYSE:OMC) had its price objective reduced by equities research analysts at Citigroup from $115.00 to $105.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has a “buy” rating on the business services provider’s stock. Citigroup’s price target suggests a potential upside of 37.20% from the stock’s previous close.

A number of other analysts have also recently issued reports on OMC. Bank of America restated an “underperform” rating and set a $77.00 price objective (down from $87.00) on shares of Omnicom Group in a research report on Monday, January 5th. Barclays raised their target price on Omnicom Group from $82.00 to $90.00 and gave the stock an “equal weight” rating in a research report on Monday, February 23rd. Weiss Ratings reiterated a “hold (c)” rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Argus upgraded Omnicom Group to a “hold” rating in a research report on Thursday, March 26th. Finally, UBS Group lifted their price objective on Omnicom Group from $108.00 to $114.00 and gave the company a “buy” rating in a research report on Friday, March 20th. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $94.43.

Omnicom Group Stock Performance

Shares of NYSE:OMC traded up $0.34 during trading on Thursday, hitting $76.53. 2,894,181 shares of the stock were exchanged, compared to its average volume of 4,910,575. The company has a market capitalization of $21.81 billion, a price-to-earnings ratio of 156.25, a price-to-earnings-growth ratio of 0.58 and a beta of 0.73. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.81 and a current ratio of 0.93. Omnicom Group has a 1-year low of $66.33 and a 1-year high of $87.17. The company’s fifty day simple moving average is $78.46 and its 200-day simple moving average is $76.81.

Omnicom Group (NYSE:OMC) last released its quarterly earnings data on Tuesday, April 28th. The business services provider reported $1.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.84 by $0.06. The business had revenue of $6.24 billion for the quarter, compared to analysts’ expectations of $5.61 billion. Omnicom Group had a positive return on equity of 25.65% and a negative net margin of 0.32%.Omnicom Group’s quarterly revenue was up 69.2% on a year-over-year basis. During the same period in the previous year, the business posted $1.70 earnings per share. Sell-side analysts expect that Omnicom Group will post 10.92 EPS for the current fiscal year.

Omnicom Group announced that its board has authorized a share repurchase program on Wednesday, February 18th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the business services provider to reacquire up to 38.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Institutional Investors Weigh In On Omnicom Group

A number of institutional investors have recently made changes to their positions in OMC. Vanguard Group Inc. grew its stake in shares of Omnicom Group by 64.2% during the fourth quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider’s stock worth $3,143,930,000 after purchasing an additional 15,220,444 shares during the period. State Street Corp grew its stake in shares of Omnicom Group by 40.4% during the fourth quarter. State Street Corp now owns 23,676,768 shares of the business services provider’s stock worth $1,933,891,000 after purchasing an additional 6,813,441 shares during the period. First Eagle Investment Management LLC acquired a new stake in shares of Omnicom Group during the third quarter worth $515,145,000. Bank of New York Mellon Corp grew its stake in Omnicom Group by 69.6% in the fourth quarter. Bank of New York Mellon Corp now owns 11,283,863 shares of the business services provider’s stock valued at $911,172,000 after acquiring an additional 4,631,394 shares during the period. Finally, Wellington Management Group LLP grew its stake in Omnicom Group by 522.9% in the fourth quarter. Wellington Management Group LLP now owns 5,199,477 shares of the business services provider’s stock valued at $419,858,000 after acquiring an additional 4,364,797 shares during the period. 91.97% of the stock is owned by institutional investors and hedge funds.

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.