Interpublic Group of Companies (NYSE:IPG) Trading Up 4.9% – Should You Buy?

The Interpublic Group of Companies, Inc. (NYSE:IPG)’s share price was up 4.9% on Monday . The stock traded as high as $29.39 and last traded at $29.55. Approximately 1,295,411 shares traded hands during mid-day trading, a decline of 77% from the average daily volume of 5,593,542 shares. The stock had previously closed at $28.18.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the stock. Wells Fargo & Company upgraded shares of Interpublic Group of Companies from an “underweight” rating to an “equal weight” rating and increased their target price for the stock from $26.00 to $34.00 in a research report on Tuesday, December 10th. Argus lowered Interpublic Group of Companies from a “buy” rating to a “hold” rating in a report on Tuesday, February 18th. BNP Paribas upgraded Interpublic Group of Companies from an “underperform” rating to an “outperform” rating and set a $38.00 target price on the stock in a research note on Friday, January 10th. UBS Group raised Interpublic Group of Companies from a “sell” rating to a “neutral” rating and dropped their target price for the stock from $29.00 to $27.00 in a research report on Thursday, February 13th. Finally, Barclays upgraded Interpublic Group of Companies from an “equal weight” rating to an “overweight” rating and lifted their price target for the company from $32.00 to $36.00 in a report on Friday, January 24th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $33.50.

Interpublic Group of Companies Stock Performance

The company has a debt-to-equity ratio of 0.77, a current ratio of 1.09 and a quick ratio of 1.09. The firm’s 50 day moving average price is $27.74 and its 200-day moving average price is $29.47. The firm has a market cap of $10.52 billion, a price-to-earnings ratio of 15.42 and a beta of 1.14.

Interpublic Group of Companies (NYSE:IPG) last released its earnings results on Wednesday, February 12th. The business services provider reported $1.11 earnings per share for the quarter, missing the consensus estimate of $1.15 by ($0.04). Interpublic Group of Companies had a net margin of 6.45% and a return on equity of 27.10%. On average, analysts anticipate that The Interpublic Group of Companies, Inc. will post 2.66 earnings per share for the current year.

Interpublic Group of Companies Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Investors of record on Monday, March 3rd will be paid a $0.33 dividend. The ex-dividend date of this dividend is Monday, March 3rd. This represents a $1.32 dividend on an annualized basis and a dividend yield of 4.68%. Interpublic Group of Companies’s payout ratio is 72.13%.

Interpublic Group of Companies announced that its board has authorized a share buyback program on Wednesday, February 12th that allows the company to buyback $155.00 million in outstanding shares. This buyback authorization allows the business services provider to reacquire up to 1.6% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Interpublic Group of Companies

In other news, CFO Ellen Tobi Johnson sold 21,427 shares of Interpublic Group of Companies stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of $26.82, for a total transaction of $574,672.14. Following the sale, the chief financial officer now directly owns 143,373 shares in the company, valued at approximately $3,845,263.86. The trade was a 13.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.42% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Allworth Financial LP grew its stake in shares of Interpublic Group of Companies by 75.8% in the 4th quarter. Allworth Financial LP now owns 1,113 shares of the business services provider’s stock valued at $31,000 after purchasing an additional 480 shares during the period. Ashton Thomas Securities LLC acquired a new stake in Interpublic Group of Companies in the 3rd quarter valued at $32,000. OFI Invest Asset Management bought a new stake in Interpublic Group of Companies in the fourth quarter valued at $36,000. Raiffeisen Bank International AG acquired a new position in Interpublic Group of Companies during the fourth quarter worth $42,000. Finally, Brooklyn Investment Group bought a new position in shares of Interpublic Group of Companies during the third quarter valued at $60,000. Institutional investors own 98.43% of the company’s stock.

About Interpublic Group of Companies

The Interpublic Group of Companies, Inc provides advertising and marketing services worldwide. It operates in three segments: Media, Data & Engagement Solutions, Integrated Advertising & Creativity Led Solutions, and Specialized Communications & Experiential Solutions. The Media, Data & Engagement Solutions segment provides media and communications services, digital services and products, advertising and marketing technology, e-commerce services, data management and analytics, strategic consulting, and digital brand experience under the IPG Mediabrands, UM, Initiative, Kinesso, Acxiom, Huge, MRM, and R/GA brand names.