The Interpublic Group of Companies Inc. (NYSE:IPG) shares fell to a low of $23.61 before closing at $23.92. Intraday shares traded counted 3.61 million, which was 12.04% higher than its 30-day average trading volume of 4.10M. IPG’s previous close was $23.64 while the outstanding shares total 389.60M. The firm has a beta of 1.01, a 12-month trailing P/E ratio of 16.61, and a growth ratio of 9.23. The stock’s Relative Strength Index (RSI) is 68.57, with weekly volatility at 2.15% and ATR at 0.66. The IPG stock’s 52-week price range has touched low of $11.63 and a $25.20 high. The stock traded higher over the last trading session, gaining 1.18% on 12/11/20.
Investors have identified the Advertising Agencies company The Interpublic Group of Companies Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $9.22 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
The Interpublic Group of Companies Inc. (IPG) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For IPG, the company has in raw cash 1.63 billion on their books with 552.9 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 7.28 billion total, with 7.23 billion as their total liabilities.
IPG were able to record 213.1 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 434.6 million. In cash movements, the company had a total of 325.1 million as operating cash flow.
Potential earnings growth for The Interpublic Group of Companies Inc. (IPG)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, The Interpublic Group of Companies Inc. recorded a total of 2.13 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -14.71% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 4.7%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.75 billion trying to sell their products during the last quarter, with the result yielding a gross income of 376.8 million. This allows shareholders to hold on to 389.60M with the recently reported earning now reading 0.71 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.53 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.85 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on IPG sounds very interesting.
Is the stock of IPG attractive?
In related news, Chairman & CEO, ROTH MICHAEL ISOR sold 375,466 shares of the company’s stock in a transaction that recorded on Nov 10. The sale was performed at an average price of 21.32, for a total value of 8,004,935. As the sale deal closes, the Chairman & CEO, ROTH MICHAEL ISOR now sold 170,982 shares of the company’s stock, valued at 3,653,885. Also, Director, GUILFOILE MARY sold 8,735 shares of the company’s stock in a deal that was recorded on Aug 07. The shares were price at an average price of 18.28 per share, with a total market value of 159,676. Following this completion of acquisition, the Director, HUDSON DAWN E now holds 3,100 shares of the company’s stock, valued at 50,499. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
7 out of 14 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on The Interpublic Group of Companies Inc.. 1 analysts has assigned a Sell rating on the IPG stock. The 12-month mean consensus price target for the company’s shares has been set at $22.05.