Prepare Yourself for Liftoff: The Interpublic Group of Companies Inc. (IPG)

The Interpublic Group of Companies Inc. (NYSE: IPG) stock fell -1.17% on Friday to $26.26 against a previous-day closing price of $26.57. With 2.74 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.07 million shares. During the session, the Advertising Agencies company that operates in wider Communication Services sector, reached to the highest price of $26.79 whereas the lowest price it dropped to was $26.25. The 52-week range on IPG shows that it touched its highest point at $39.98 and its lowest point at $26.36 during that stretch. It currently has a 1-year price target of $33.87. With its current market cap of 10.46 billion, IPG has annualized dividend of $1.16 while the current yield stands at 4.42%. Beta for the stock currently stands at 1.04.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of IPG was down-trending over the past week, with a drop of -5.61%, but this was down by -8.82% over a month. Three-month performance dropped to -2.52% while six-month performance fell -25.25%. The stock lost -29.01% in the past year, while it has lost -29.88% so far this year. A look at the trailing 12-month EPS for IPG yields 2.48 with Next year EPS estimates of 2.68. For the next quarter, that number is 0.59. This implies an EPS growth rate of 167.80% for this year and -0.78% for next year. EPS is expected to grow by 3.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 10.00%.

Float and Shares Shorts:

At present, 393.10 million IPG shares are outstanding with a float of 389.16 million shares on hand for trading. On Jul 14, 2022, short shares totaled 12.65 million, which was 3.21% higher than short shares on Jun 14, 2022. In addition to Ms. Ellen Tobi Johnson as the firm’s Exec. VP & CFO, Mr. Christopher F. Carroll CPA, CPA serves as its Sr. VP, Controller, Chief Accounting Officer & CFO of IPG DXTRA.

Institutional Ownership:

Through their ownership of 102.94% of IPG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.96% of IPG, in contrast to 44.66% held by mutual funds. Shares owned by individuals account for 1.34%. As the largest shareholder in IPG with 12.09% of the stake, The Vanguard Group, Inc. holds 47,291,070 shares worth 47,291,070. A second-largest stockholder of IPG, BlackRock Fund Advisors, holds 28,715,627 shares, controlling over 7.34% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in IPG, holding 20,906,226 shares or 5.35% stake. With a 2.98% stake in IPG, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 11,653,905 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.25% of IPG stock, is the second-largest Mutual Fund holder. It holds 8,785,138 shares valued at 242.82 million. iShares Tr. – Select Dividend ETF holds 1.85% of the stake in IPG, owning 7,242,930 shares worth 200.19 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IPG since 14 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With IPG analysts setting a high price target of $43.00 and a low target of $22.00, the average target price over the next 12 months is $34.25. Based on these targets, IPG could surge 63.75% to reach the target high and fall by -16.22% to reach the target low. Reaching the average price target will result in a growth of 30.43% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. IPG will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $2.72 being high and $2.65 being low. For IPG, this leads to a yearly average estimate of $2.70. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The Interpublic Group of Companies Inc. surprised analysts by $0.05 when it reported $0.63 EPS against a consensus estimate of $0.58. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is $0.61 and the low estimate is $0.57. The average estimate for the next quarter is thus $0.59.

Summary of Insider Activity:

Insiders traded IPG stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 6,500 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 15 over the past year. The total number of shares bought during that period was 331,108 while 584,350 shares were sold.

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