The Interpublic Group of Companies, Inc. (IPG) – Stick with this stock for the long term

On November 29, 2019, The Interpublic Group of Companies, Inc. (NYSE:IPG) shares lost -0.53% or -0.12 points to close at $22.4 with a thin trading volume of 1.803 million shares. It opened the trading session at $22.43, the shares rose to $22.575 and dropped to $22.29, the range by which the price of stock traded the whole day. The company now has a market cap of $8.64 billion and currently has 385.64 million outstanding shares. The Interpublic Group of Companies, Inc. (IPG) stock has accumulated 1.36 percent of market value in 21 trading days.

IPG stock’s trailing 3-year beta is 1.1, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $1.67 share in the trailing 52 weeks. The stock’s value surged 8.58 percent year to date (YTD) compared to a decline of -8.08 percent in 52 week’s period. The firm’s shares are still trading -8.5 percent below its 1-year high of $24.48 and 14.52 percent up from 52-week low of $19.56. The average consensus ranking on the company is 2.7, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

The Interpublic Group of Companies, Inc. (IPG) is most likely going to rise 10.13 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $28-month high price target. This represents a whopping 25 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $25, which means a return possibility of 11.61 percent in comparison with the closing price of the stock of $22.4 on November 29. The lowest price set for the stock is $21 — just above -6.25 percent from IPG share price now.

Past records have indicated that shares in The Interpublic Group of Companies, Inc. rose on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of IPG’s Q4 earnings on February 14. Analysts are predicting revenue to suffer decline of -0.1 percent to $2.41B in the financial fourth quarter, while EPS will soar by about -6.74 percent to $0.83 per share. In the last quarter, it earnings of $0.46 per share came worse than the $0.83109, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $2.41B, topping the $2.34B analysts had expected. Earnings are seen to rise by 14 percent this year, 5.25 percent in the coming year and the trend continues by 4.55 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at The Interpublic Group of Companies, Inc. (NYSE:IPG) and observe the pattern. The earliest insider trade happened on 11/26/2019. SANFORD LINDA S gathered a total of 3.36 thousand shares of the firm at average share price of $22.27. The total amount for the purchase was set at $74.89 thousand. On completing this exchange, the Director account balance was 3.36 thousand shares. The stock grew 0.58 percent from that insider purchase. On 11/13/2019, Connors Julie, SVP Audit & CRO, did a sale of 10.69 thousand shares at a price of $22.23 per share. This got rid of 237.64 thousand shares from the insider’s fortune and the stock experienced a 0.76 percent rally in price since the news became public. This exchange saw 15.2 thousand shares get out from the SVP Audit & CRO account.

On 11/01/2019, Director GREENIAUS H JOHN recorded a sale transaction valued at $220 thousand. The sale at $22 a share has eliminated 10 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 1.82 percent increase since the transaction reporting date. The company insider is left with 31.81 thousand shares remaining in the account. ROTH MICHAEL ISOR, who works as Chairman & CEO at the company, performed a sale of 100.31 thousand shares in a transaction worth $2.21 million. The disposal recorded on 10/29/2019 was priced at $22.04 per share. The stock price soared 1.63 percent since the transaction. ROTH MICHAEL ISOR currently holds a stake of 1.14 million in IPG stock which is worth $25.44 million after the insider selling.

The stock is lingering around the initial support level of $22.27. After this, the following support is at the zone of $22.14. Up until the time the IPG stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 57.31 on the daily chart, and this may be a cause for concern. In case the price goes below $22.14 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $22.55 level may cause a pull-back move approaching $22.71 mark.

The Interpublic Group of Companies, Inc. (IPG) shares are trading at a P/E ratio of 13.3 times earnings posted in the trailing 12 months. The industry IPG deals with has an average P/E of 48.3. Its P/B ratio is standing at 3.5X compared to the 2.7 industry average. It is additionally sporting a 0.9 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1. The Interpublic Group of Companies, Inc. has a 14.9% gross profit margin, with its operating margin around 10%. Alongside this, the company’s net profit margin currently stands at 6.4%.