Omnicom Group Inc. (NYSE:OMC) finished Wednesday with a subtraction of -$0.05 to close at $80.32, a downside of -0.06 percent. An average of 1,762,600 shares of common stock have been traded in the last five days. There was a fall of -$2.35 in the past week, and it reached a new high 32 times over the past 12 months. The last 20 days have seen an average of 2,635,970 shares traded, while the 50-day average volume stands at 1,928,890.
OMC stock has decreased by -16.56% in the last month. The company shares reached their 1-month lowest point of $79.85 on 08/09/23. With the stock rallying to its 52-week high on 07/18/23, shares of the company touched a low of $61.85 and a high of $99.23 in 52 weeks. It has reached a new high 16 times so far this year and lost -1.53% or -$1.25 in price. In spite of this, the price is down -19.06% from the 52-week high.
Insider Transactions
OMC stock investors should be aware that Omnicom Group Inc. (OMC) stock had its last reported insider trading activity 63 days ago on Jun 08. In this transaction, the insider spent $2,367,750. Senior VP and Treasurer, Tarlowe Rochelle M., disposed of 1,800 shares at a price of $94.12 on Jun 08. The insider now owns more than $169,416 worth of shares. Prior to that, Director RICE LINDA JOHNSON went on to Sale 1,700 shares at $89.75 each on Apr 27. An amount of $152,575 was transacted.
Valuation Metrics
Omnicom Group Inc. (OMC) has a trailing price-to-earnings (P/E) ratio of 11.83. The stock’s beta is 0.87. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.11, the price-to-book (PB) ratio at 5.07, and the price-to-cash flow ratio at 68.23.
The company has a payout ratio of 40.90%. The company’s most recent quarterly dividend payment was $0.70 a share, without any change from last year. Its latest increase dividend $0.05 reported on Thursday February 18 2021.
Financial Health
The quick ratio of Omnicom Group Inc. for the three months ended June 29 was 0.90, and the current ratio was 1.00, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.78 and a total debt to equity ratio of 1.79 for the quarter ending June 29. Omnicom Group Inc.’s EBITDA margin for the year ending June 29 is 16.91%, while its operating margin for the same period stands at 14.50%. Its gross profit as reported stood at $2.79 billion compared to revenue of $14.29 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Omnicom Group Inc.’s return on assets was 5.50%.
Earnings Surprise
For the three-month period that ended June 29, Omnicom Group Inc. had $75.9 million in cash and short-term investments compared to $5.61 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $366.3 million in the quarter, while revenues of $227.5 million were grew 4.89%. The analyst consensus anticipated Omnicom Group Inc.’s latest quarter earnings to come in at $1.8 per share, but it turned out to be $1.81, a 0.60% surprise. For the quarter, EBITDA amounted to $603.1 million. Shareholders own equity worth $197.57 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Omnicom Group Inc. (OMC) price momentum. RSI 9-day as of the close on 09 August was 24.65%, suggesting the stock is oversold, with historical volatility in this time frame at 18.95%.
As of today, OMC’s price is $81.14 -2.84% or -$2.35 from its 5-day moving average. OMC is currently trading -15.62% lower than its 20-day SMA and -8.01% lower than its 100-day SMA. However, the stock’s current price level is -10.71% below the SMA50 and +18.17% above the SMA200.
The stochastic %K and %D were 4.42% and 3.78%, respectively, and the average true range (ATR) was 1.91. With the 14-day stochastic at 7.37% and the average true range at 2.04, the RSI (14) stands at 29.33%. The stock has reached -1.31 on the 9-day MACD Oscillator while the 14-day reading was at -1.64.
Analyst Ratings
Wells Fargo downgraded Omnicom Group Inc. (NYSE: OMC) to a an Equal weight rating in its most recent analyst report. Previously, the stock was rated as an Overweight. The consensus rating for Omnicom Group Inc. (OMC) among analysts is Hold. According to current brokerage recommendations, 0 brokerage firms advise that investors sell OMC, while 10 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 4 others rate it as a “buy”.
What is OMC’s price target for the next 12 months?
Analysts predict a range of price targets between $84.00 and $113.00, with a median target of $99.00. Taking a look at these predictions, the average price target given by analysts for Omnicom Group Inc. (OMC) stock is $98.95.
