Omnicom Group, Inc. (OMC) Stock: Assessing the Risk and Reward

In the past week, OMC stock has gone up by 2.19%, with a monthly gain of 6.29% and a quarterly surge of 8.66%. The volatility ratio for the week is 1.66%, and the volatility levels for the last 30 days are 1.80% for Omnicom Group, Inc. The simple moving average for the last 20 days is 1.27% for OMC’s stock, with a simple moving average of 12.39% for the last 200 days.

Is It Worth Investing in Omnicom Group, Inc. (NYSE: OMC) Right Now?

The price-to-earnings ratio for Omnicom Group, Inc. (NYSE: OMC) is above average at 13.69x. The 36-month beta value for OMC is also noteworthy at 0.97. There are mixed opinions on the stock, with 3 analysts rating it as a “buy,” 1 rating it as “overweight,” 9 rating it as “hold,” and 3 rating it as “sell.”

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The public float for OMC is 195.85M, and at present, short sellers hold a 4.13% of that float. The average trading volume of OMC on April 04, 2024 was 1.65M shares.

OMC) stock’s latest price update

The stock price of Omnicom Group, Inc. (NYSE: OMC) has dropped by -0.52 compared to previous close of 95.31. Despite this, the company has seen a gain of 2.19% in its stock price over the last five trading days. Zacks Investment Research reported 2024-03-07 that Omnicom (OMC) reported earnings 30 days ago. What’s next for the stock?

Analysts’ Opinion of OMC

Many brokerage firms have already submitted their reports for OMC stocks, with Macquarie repeating the rating for OMC by listing it as a “Outperform.” The predicted price for OMC in the upcoming period, according to Macquarie is $110 based on the research report published on April 02, 2024 of the current year 2024.

Exane BNP Paribas, on the other hand, stated in their research note that they expect to see OMC reach a price target of $115. The rating they have provided for OMC stocks is “Outperform” according to the report published on March 28th, 2024.

Wells Fargo gave a rating of “Equal Weight” to OMC, setting the target price at $91 in the report published on February 07th of the current year.

OMC Trading at 4.69% from the 50-Day Moving Average

After a stumble in the market that brought OMC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -4.45% of loss for the given period.

Volatility was left at 1.80%, however, over the last 30 days, the volatility rate increased by 1.66%, as shares surge +6.46% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +6.79% upper at present.

During the last 5 trading sessions, OMC rose by +2.19%, which changed the moving average for the period of 200-days by -0.83% in comparison to the 20-day moving average, which settled at $93.91. In addition, Omnicom Group, Inc. saw 9.59% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at OMC starting from Tarlowe Rochelle M., who sale 1,500 shares at the price of $95.34 back on Mar 13 ’24. After this action, Tarlowe Rochelle M. now owns 15,579 shares of Omnicom Group, Inc., valued at $143,012 using the latest closing price.

RICE LINDA JOHNSON, the Director of Omnicom Group, Inc., sale 507 shares at $86.66 during a trade that took place back on Feb 09 ’24, which means that RICE LINDA JOHNSON is holding 9,753 shares at $43,937 based on the most recent closing price.

Stock Fundamentals for OMC

Current profitability levels for the company are sitting at:

  • 0.14 for the present operating margin
  • 0.18 for the gross margin

The net margin for Omnicom Group, Inc. stands at 0.09. The total capital return value is set at 0.18. Equity return is now at value 40.52, with 5.06 for asset returns.

Based on Omnicom Group, Inc. (OMC), the company’s capital structure generated 0.64 points at debt to capital in total, while cash flow to debt ratio is standing at 0.22. The debt to equity ratio resting at 1.8. The interest coverage ratio of the stock is 9.76.

Currently, EBITDA for the company is 2.42 billion with net debt to EBITDA at 0.86. When we switch over and look at the enterprise to sales, we see a ratio of 1.42. The receivables turnover for the company is 1.7for trailing twelve months and the total asset turnover is 0.52. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.95.

Conclusion

In summary, Omnicom Group, Inc. (OMC) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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