Interpublic Group of Companies (IPG) Raised to “Buy” at Zacks Investment Research

Interpublic Group of Companies (NYSE:IPG) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Friday. The firm presently has a $26.00 target price on the business services provider’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 13.74% from the stock’s current price.

According to Zacks, “Interpublic continues to benefit from higher organic revenue growth. The company's  digital capabilities, diversified business model and geographic reach offer a distinctive competitive advantage. It continues to look for strategic investments and buyouts to expand in high-growth regions and key world markets. Interpublic’s consistent efforts to reward its shareholders through share repurchases and dividend payments are appreciable. Shares of the company have outperformed its industry in the past year. On the flip side, the company’s global presence makes it vulnerable to foreign currency fluctuations. Interpublic's cash position is affected by seasonality in business. Client concentration can be a major hindrance to Interpublic’s business. A debt-laden balance sheet is another concern.”

Other equities research analysts have also recently issued research reports about the company. Morgan Stanley reaffirmed an “equal weight” rating and set a $24.00 target price on shares of Interpublic Group of Companies in a research note on Monday, October 15th. ValuEngine raised Interpublic Group of Companies from a “sell” rating to a “hold” rating in a research note on Wednesday, August 15th. BMO Capital Markets raised their target price on Interpublic Group of Companies from $27.00 to $28.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 24th. JPMorgan Chase & Co. assumed coverage on Interpublic Group of Companies in a research note on Thursday, October 11th. They set an “overweight” rating for the company. Finally, Macquarie raised Interpublic Group of Companies from a “neutral” rating to an “outperform” rating and raised their target price for the stock from $24.00 to $25.00 in a research note on Thursday, September 20th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and six have assigned a buy rating to the company’s stock. Interpublic Group of Companies has an average rating of “Hold” and an average target price of $25.44.

Shares of IPG stock traded down $0.09 on Friday, hitting $22.86. The company had a trading volume of 76,384 shares, compared to its average volume of 3,590,472. The stock has a market cap of $8.91 billion, a price-to-earnings ratio of 16.18, a PEG ratio of 1.80 and a beta of 1.07. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.50. Interpublic Group of Companies has a twelve month low of $18.99 and a twelve month high of $26.01.

Interpublic Group of Companies (NYSE:IPG) last issued its quarterly earnings results on Friday, October 19th. The business services provider reported $0.48 earnings per share for the quarter, beating the consensus estimate of $0.46 by $0.02. The company had revenue of $1.90 billion during the quarter, compared to analysts’ expectations of $1.88 billion. Interpublic Group of Companies had a return on equity of 30.99% and a net margin of 6.62%. The business’s quarterly revenue was up 3.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.31 earnings per share. Sell-side analysts forecast that Interpublic Group of Companies will post 1.74 earnings per share for the current year.

In other Interpublic Group of Companies news, Director Jocelyn Carter-Miller sold 8,735 shares of the stock in a transaction that occurred on Monday, November 5th. The stock was sold at an average price of $23.24, for a total value of $203,001.40. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director H John Greeniaus sold 5,000 shares of the stock in a transaction that occurred on Wednesday, October 31st. The stock was sold at an average price of $23.50, for a total value of $117,500.00. The disclosure for this sale can be found here. Company insiders own 1.49% of the company’s stock.

A number of large investors have recently made changes to their positions in the business. FMR LLC lifted its holdings in shares of Interpublic Group of Companies by 9.4% in the third quarter. FMR LLC now owns 35,562,622 shares of the business services provider’s stock valued at $813,317,000 after purchasing an additional 3,058,519 shares in the last quarter. Pzena Investment Management LLC lifted its holdings in shares of Interpublic Group of Companies by 0.4% in the third quarter. Pzena Investment Management LLC now owns 16,696,074 shares of the business services provider’s stock valued at $381,839,000 after purchasing an additional 65,158 shares in the last quarter. Capital World Investors lifted its holdings in shares of Interpublic Group of Companies by 171.4% in the third quarter. Capital World Investors now owns 15,671,000 shares of the business services provider’s stock valued at $358,396,000 after purchasing an additional 9,896,000 shares in the last quarter. Ariel Investments LLC lifted its holdings in shares of Interpublic Group of Companies by 0.4% in the second quarter. Ariel Investments LLC now owns 7,706,271 shares of the business services provider’s stock valued at $180,635,000 after purchasing an additional 28,507 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of Interpublic Group of Companies by 17.8% in the third quarter. Dimensional Fund Advisors LP now owns 3,201,434 shares of the business services provider’s stock valued at $73,215,000 after purchasing an additional 483,999 shares in the last quarter. Institutional investors and hedge funds own 99.66% of the company’s stock.

About Interpublic Group of Companies

The Interpublic Group of Companies, Inc provides advertising and marketing services worldwide. The company operates through two segments, Integrated Agency Networks and Constituency Management Group. It offers consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines.

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