Interpublic Group of Companies (NYSE:IPG) Shares Up 2.3% – Time to Buy?

The Interpublic Group of Companies, Inc. (NYSE:IPG)’s stock price shot up 2.3% on Monday . The company traded as high as $26.98 and last traded at $26.88. 595,529 shares changed hands during mid-day trading, a decline of 88% from the average session volume of 4,892,928 shares. The stock had previously closed at $26.29.

Analyst Upgrades and Downgrades

Several analysts have recently commented on IPG shares. JPMorgan Chase & Co. upgraded shares of Interpublic Group of Companies from a “neutral” rating to an “overweight” rating and raised their target price for the stock from $32.00 to $39.00 in a research note on Monday, January 27th. BNP Paribas raised Interpublic Group of Companies from an “underperform” rating to an “outperform” rating and set a $38.00 price objective on the stock in a report on Friday, January 10th. Wells Fargo & Company raised 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 note on Tuesday, December 10th. Argus downgraded Interpublic Group of Companies from a “buy” rating to a “hold” rating in a research note on Tuesday, February 18th. Finally, Barclays raised Interpublic Group of Companies from an “equal weight” rating to an “overweight” rating and upped their price objective for the stock from $32.00 to $36.00 in a report on Friday, January 24th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and four have assigned a buy rating to the company. According to MarketBeat, Interpublic Group of Companies currently has a consensus rating of “Hold” and an average target price of $33.50.

Interpublic Group of Companies Stock Down 3.9 %

The firm’s 50 day moving average price is $27.35 and its two-hundred day moving average price is $28.85. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.77. The firm has a market capitalization of $9.73 billion, a PE ratio of 14.27 and a beta of 1.14.

Interpublic Group of Companies (NYSE:IPG) last announced its earnings results on Wednesday, February 12th. The business services provider reported $1.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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%. As a group, research analysts forecast that The Interpublic Group of Companies, Inc. will post 2.66 EPS for the current fiscal year.

Interpublic Group of Companies Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, March 17th. Stockholders of record on Monday, March 3rd were issued a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 5.05%. The ex-dividend date of this dividend was Monday, March 3rd. Interpublic Group of Companies’s dividend payout ratio (DPR) is presently 72.13%.

Interpublic Group of Companies declared that its board has initiated a share buyback plan on Wednesday, February 12th that authorizes the company to buyback $155.00 million in shares. This buyback authorization authorizes the business services provider to reacquire up to 1.6% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In related news, CFO Ellen Tobi Johnson sold 21,427 shares of the firm’s stock in a transaction that occurred on Monday, March 3rd. The stock was sold at an average price of $26.82, for a total value of $574,672.14. Following the sale, the chief financial officer now directly owns 143,373 shares in the company, valued at $3,845,263.86. This trade represents a 13.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.42% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of IPG. State Street Corp lifted its holdings in Interpublic Group of Companies by 15.1% in the third quarter. State Street Corp now owns 29,844,859 shares of the business services provider’s stock worth $943,993,000 after purchasing an additional 3,920,975 shares during the period. Canada Pension Plan Investment Board boosted its position in shares of Interpublic Group of Companies by 139.5% in the fourth quarter. Canada Pension Plan Investment Board now owns 13,210,446 shares of the business services provider’s stock worth $370,157,000 after buying an additional 7,693,636 shares during the period. First Trust Advisors LP grew its stake in Interpublic Group of Companies by 13.0% during the 4th quarter. First Trust Advisors LP now owns 12,975,872 shares of the business services provider’s stock valued at $363,584,000 after acquiring an additional 1,492,019 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in Interpublic Group of Companies by 4.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 12,938,530 shares of the business services provider’s stock valued at $362,538,000 after buying an additional 511,607 shares during the period. Finally, Invesco Ltd. grew its holdings in shares of Interpublic Group of Companies by 14.8% during the 4th quarter. Invesco Ltd. now owns 10,264,732 shares of the business services provider’s stock valued at $287,618,000 after acquiring an additional 1,320,345 shares in the last quarter. 98.43% of the stock is owned by institutional investors and hedge funds.

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.