Omnicom Group (NYSE:OMC) Reaches New 52-Week Low - Should You Sell?

Omnicom Group Inc. (NYSE:OMC - Get Free Report) shares hit a new 52-week low on Tuesday . The stock traded as low as $84.21 and last traded at $84.25, with a volume of 1342664 shares trading hands. The stock had previously closed at $85.10.

Analyst Upgrades and Downgrades

OMC has been the subject of several recent analyst reports. Barclays boosted their target price on Omnicom Group from $110.00 to $121.00 and gave the company an "overweight" rating in a research report on Thursday, October 17th. Wells Fargo & Company cut their price objective on Omnicom Group from $110.00 to $99.00 and set an "equal weight" rating on the stock in a research report on Tuesday, December 10th. UBS Group lifted their target price on Omnicom Group from $120.00 to $124.00 and gave the stock a "buy" rating in a research report on Wednesday, October 16th. Macquarie reissued an "outperform" rating and set a $120.00 target price on shares of Omnicom Group in a research note on Wednesday, December 11th. Finally, JPMorgan Chase & Co. raised their price target on shares of Omnicom Group from $118.00 to $119.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 16th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and six have given a buy rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $110.00.

Omnicom Group Stock Performance

The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.86 and a current ratio of 0.98. The firm's fifty day moving average price is $96.28 and its 200 day moving average price is $96.85. The firm has a market cap of $16.51 billion, a P/E ratio of 11.56, a price-to-earnings-growth ratio of 2.07 and a beta of 0.98.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its earnings results on Tuesday, October 15th. The business services provider reported $2.03 earnings per share for the quarter, topping analysts' consensus estimates of $2.02 by $0.01. Omnicom Group had a return on equity of 36.59% and a net margin of 9.45%. The company had revenue of $3.88 billion during the quarter, compared to analyst estimates of $3.79 billion. During the same quarter in the prior year, the business earned $1.86 earnings per share. Sell-side analysts expect that Omnicom Group Inc. will post 7.92 EPS for the current fiscal year.

Omnicom Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 10th. Investors of record on Friday, December 20th will be paid a dividend of $0.70 per share. The ex-dividend date of this dividend is Friday, December 20th. This represents a $2.80 annualized dividend and a dividend yield of 3.31%. Omnicom Group's dividend payout ratio (DPR) is presently 38.25%.

Insiders Place Their Bets

In related news, CAO Andrew Castellaneta sold 4,000 shares of the firm's stock in a transaction on 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 transaction, the chief accounting officer now owns 23,545 shares in the company, valued at $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 is available at this link. Corporate insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. National Bank of Canada FI lifted its holdings in shares of Omnicom Group by 23.3% in the 2nd quarter. National Bank of Canada FI now owns 55,959 shares of the business services provider's stock valued at $4,907,000 after buying an additional 10,592 shares during the period. Victory Capital Management Inc. lifted its holdings in Omnicom Group by 3.2% in the second quarter. Victory Capital Management Inc. now owns 513,349 shares of the business services provider's stock valued at $46,047,000 after acquiring an additional 16,078 shares during the period. Private Advisor Group LLC boosted its position in Omnicom Group by 4.3% in the 2nd quarter. Private Advisor Group LLC now owns 12,238 shares of the business services provider's stock worth $1,098,000 after purchasing an additional 502 shares in the last quarter. Candriam S.C.A. grew its stake in shares of Omnicom Group by 29.8% during the 2nd quarter. Candriam S.C.A. now owns 75,218 shares of the business services provider's stock worth $6,747,000 after purchasing an additional 17,287 shares during the period. Finally, Caprock Group LLC increased its holdings in shares of Omnicom Group by 137.6% during the 2nd quarter. Caprock Group LLC now owns 14,007 shares of the business services provider's stock valued at $1,266,000 after purchasing an additional 8,113 shares in the last quarter. Hedge funds and other 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.