Omnicom Group (NYSE:OMC) Sees Unusually-High Trading Volume – Still a Buy?

Omnicom Group Inc. (NYSE:OMC) shares saw unusually-strong trading volume on Friday . Approximately 5,006,795 shares were traded during trading, an increase of 227% from the previous session’s volume of 1,530,322 shares.The stock last traded at $97.59 and had previously closed at $105.04.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Macquarie upped their target price on shares of Omnicom Group from $110.00 to $120.00 and gave the stock an “outperform” rating in a report on Wednesday, October 16th. Wells Fargo & Company downgraded Omnicom Group from an “overweight” rating to an “equal weight” rating and increased their price objective for the stock from $106.00 to $110.00 in a research note on Wednesday, October 16th. UBS Group lifted their target price on Omnicom Group from $120.00 to $124.00 and gave the company a “buy” rating in a research report on Wednesday, October 16th. Barclays increased their price target on Omnicom Group from $110.00 to $121.00 and gave the company an “overweight” rating in a research report on Thursday, October 17th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Omnicom Group from $118.00 to $119.00 and gave the stock an “overweight” rating in a report on Wednesday, October 16th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $110.11.

Omnicom Group Trading Down 7.8 %

The stock has a market capitalization of $18.90 billion, a PE ratio of 13.23, a price-to-earnings-growth ratio of 2.32 and a beta of 0.95. The company has a current ratio of 0.98, a quick ratio of 0.86 and a debt-to-equity ratio of 1.37. The firm has a 50-day moving average price of $102.16 and a 200-day moving average price of $96.54.

Omnicom Group (NYSE:OMC) last posted its quarterly earnings data on Tuesday, October 15th. The business services provider reported $2.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.02 by $0.01. The business had revenue of $3.88 billion during the quarter, compared to the consensus estimate of $3.79 billion. Omnicom Group had a net margin of 9.45% and a return on equity of 36.59%. During the same quarter last year, the company posted $1.86 earnings per share. As a group, equities analysts forecast that Omnicom Group Inc. will post 7.94 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CAO Andrew Castellaneta sold 4,000 shares of Omnicom Group stock in a transaction dated Friday, October 18th. The stock was sold at an average price of $105.29, for a total value of $421,160.00. Following the completion of the sale, the chief accounting officer now owns 23,545 shares of the company’s stock, valued at approximately $2,479,053.05. This trade represents a 14.52 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Rochelle M. Tarlowe sold 3,000 shares of the company’s stock in a transaction dated Monday, August 26th. The shares were sold at an average price of $99.17, for a total transaction of $297,510.00. Following the sale, the vice president now directly owns 15,375 shares in the company, valued at approximately $1,524,738.75. This trade represents a 16.33 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.30% of the stock is currently owned by insiders.

Institutional Trading of Omnicom Group

Several hedge funds and other institutional investors have recently modified their holdings of the business. Jacobs Levy Equity Management Inc. grew its position in shares of Omnicom Group by 319.6% in the first quarter. Jacobs Levy Equity Management Inc. now owns 1,450,160 shares of the business services provider’s stock valued at $140,317,000 after purchasing an additional 1,104,566 shares in the last quarter. Bank of New York Mellon Corp boosted its stake in Omnicom Group by 37.0% in the 2nd quarter. Bank of New York Mellon Corp now owns 3,307,882 shares of the business services provider’s stock worth $296,717,000 after purchasing an additional 892,494 shares during the period. State Street Corp grew its holdings in Omnicom Group by 5.7% during the 3rd quarter. State Street Corp now owns 14,118,529 shares of the business services provider’s stock valued at $1,468,615,000 after buying an additional 759,980 shares in the last quarter. Los Angeles Capital Management LLC bought a new stake in shares of Omnicom Group during the second quarter valued at about $56,177,000. Finally, Boston Partners lifted its holdings in shares of Omnicom Group by 11.0% in the first quarter. Boston Partners now owns 3,874,857 shares of the business services provider’s stock worth $374,795,000 after buying an additional 383,560 shares in the last quarter. Institutional investors own 91.97% of the company’s stock.

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.