The Interpublic Group of Companies Inc. (NYSE: IPG) stock fell -0.32% on Thursday to $37.49 against a previous-day closing price of $37.61. With 4.8 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.43 million shares. During the session, the Advertising Agencies company that operates in wider Communication Services sector, reached to the highest price of $37.81 whereas the lowest price it dropped to was $37.26. The 52-week range on IPG shows that it touched its highest point at $39.52 and its lowest point at $25.14 during that stretch. It currently has a 1-year price target of $40.40. With its current market cap of 14.41 billion, IPG has annualized dividend of $1.24 while the current yield stands at 3.31%. Beta for the stock currently stands at 1.11.
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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 -2.40%, but this was up by 2.57% over a month. Three-month performance surged to 3.53% while six-month performance rose 10.85%. The stock gained 26.36% in the past year, while it has gained 12.55% so far this year. A look at the trailing 12-month EPS for IPG yields 2.30 with Next year EPS estimates of 3.12. For the next quarter, that number is 0.61. This implies an EPS growth rate of -0.70% for this year and 6.44% for next year. EPS is expected to grow by 6.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.20%.
Float and Shares Shorts:
At present, 385.80 million IPG shares are outstanding with a float of 384.49 million shares on hand for trading. On May 14, 2023, short shares totaled 14.94 million, which was 3.87% higher than short shares on Apr 13, 2023. In addition to PG as the firm’s Procter & Gamble Company (The), SPG serves as its Simon Property Group, Inc.
Through their ownership of 101.87% of IPG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 59.52% of IPG, in contrast to 41.75% held by mutual funds. Shares owned by individuals account for 1.38%. As the largest shareholder in IPG with 11.76% of the stake, The Vanguard Group, Inc. holds 45,278,683 shares worth 45,278,683. A second-largest stockholder of IPG, BlackRock Fund Advisors, holds 27,647,145 shares, controlling over 7.18% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in IPG, holding 20,826,301 shares or 5.41% stake. With a 3.12% stake in IPG, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 12,000,344 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.37% of IPG stock, is the second-largest Mutual Fund holder. It holds 9,120,989 shares valued at 325.89 million. American Funds Income Fund of Ame holds 2.05% of the stake in IPG, owning 7,883,500 shares worth 281.68 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, IPG reported revenue of $2.74B and operating income of $349.00M. The EBITDA in the recently reported quarter was $422.80M and diluted EPS was $0.58.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IPG since 0 analysts follow the stock currently. 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 $45.00 and a low target of $37.00, the average target price over the next 12 months is $40.45. Based on these targets, IPG could surge 20.03% to reach the target high and fall by -1.31% to reach the target low. Reaching the average price target will result in a growth of 7.9% 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.
Summary of Insider Activity:
Insiders traded IPG stock several times over the past three months with 16 Buys and 10 Sells. In these transactions, 428,838 shares were bought while 344,612 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 12 over the past year. The total number of shares bought during that period was 428,838 while 375,183 shares were sold.