The Interpublic Group of Companies Inc. (IPG): What Does Valuation Ratios Tell Us?

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The Interpublic Group of Companies Inc. (NYSE:IPG) saw a downside of -0.08% to close Tuesday at $36.48 after subtracting -$0.03 on the day. The 5-day average trading volume is 2,657,260 shares of the company’s common stock. It has gained $36.97 in the past week and touched a new high 4 times within the past 5 days. An average of 2,413,930 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,855,814.

IPG’s 1-month performance is 10.88% or $3.06 on its low of $32.90 reached on 12/28/22. The company’s shares have touched a 52-week low of $25.14 and high of $39.98, with the stock’s rally to the 52-week high happening on 01/24/23. YTD, IPG has achieved 9.52% or $3.17 and has reached a new high 10 times. However, the current price is down -8.75% from the 52-week high price.

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Insider Transactions

IPG stock investors last saw insider trading activity on Aug 19.Carter-Miller Jocelyn (Director) most recently sold 6,500 shares at $30.00 per share on Aug 19. This transaction cost the insider $195,000. Director, HUDSON DAWN E, sold 18,376 shares at a price of $32.45 on May 09. Then, on May 06, Director GUILFOILE MARY sold 6,301 shares at a price of $32.41 per share. This transaction amounted to $204,215.

Valuation Metrics

IPG stock has a beta of 1.08. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.27 while the price-to-book (PB) in the most recent quarter is 4.18, with the price to cash flow ratio at 82.94.

The Interpublic Group of Companies Inc.’s quick ratio for the period ended September 29 was 1.00, with the current ratio over the same period at 1.00. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.85, while the total debt to equity was 0.87.. In terms of profitability, the gross margin trailing 12 months is 16.30%. The firm’s gross profit as reported stood at $1.85 billion against revenue of $10.24 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 4.73% to $251.8 million, while revenue of $229.6 million was 8.82% off the previous quarter. Analysts expected IPG to announce $0.59 per share in earnings in its latest quarter, but it posted $0.63, representing a 6.80% surprise. EBITDA for the quarter stood at more than $422.3 million. IPG stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 13.42 billion, with total debt at $4.61 billion. Shareholders hold equity totaling $388.52 million.

Let’s look briefly at The Interpublic Group of Companies Inc. (IPG) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 71.70% to suggest the stock is trending Overbought, with historical volatility in this time period at 16.29%.

The stock’s 5-day moving average is $36.03, reflecting a +2.53% or $0.90 change from its current price. IPG is currently trading +11.19% above its 20-day SMA, +29.04% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +22.01% and SMA200 by+5.86%.

Stochastic %K and %D was 91.60% and 87.70% and the average true range (ATR) pointed at 0.67. The RSI (14) points at 68.85%, while the 14-day stochastic is at 83.50% with the period’s ATR at 0.68. The stock’s 9-day MACD Oscillator is pointing at 0.46 and 0.67 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for The Interpublic Group of Companies Inc. (NYSE: IPG), BofA Securities upgraded it to a Neutral rating. They previously had an Underperform rating on the stock.

What is IPG’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $33.00 and a high of $39.00, with their median price target at $36.00. Looking at these predictions, the average price target given by analysts is for The Interpublic Group of Companies Inc. (IPG) stock is $36.50.

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