Shares of The Interpublic Group of Companies, Inc. (NYSE:IPG) recorded -1.36% loss during trading session on February 11th, 2019. The script traded as low as $21.79 and last traded at $21.81. 5.31 million shares changed exchanged hands during trading, a drop of -17.68% from the 30-day average session volume of 4.51M shares. The firm had previously closed at $22.11. The company has $382.60M outstanding shares, a price-to-earnings ratio of 14.89, price-to-earnings-growth ratio of 0.91 and a beta of 1.07. The company has a RSI of 43.69, ATR of 0.51 and a volatility of 3.37% this week. IPG has a 52 week low price of $19.61 and a 52 week high price of $26.01.
Investors have identified the tech 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 8.34B, 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 1.86 billion on their books with 6.69 billion 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 0 total, with 893.1 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
IPG were able to record 432.4 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 1.07 billion. In cash movements, the company had a total of 326.7 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 third quarter of the year, The Interpublic Group of Companies, Inc. recorded a total of 2.3 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.04% coming in sequential stages and their sales for the third quarter reducing by -0.04%.
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 1.97 billion trying to sell their products during the last quarter, with the result yielding a gross income of 327.3 million. This allows shareholders to hold on to 382.60M with the revenue now reading 420 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.04 cents a share).
Is the stock of IPG attractive?
Having a look at the company’s valuation, the company is expected to record 1.82 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.
In related news, Director Carter-Miller Jocelyn sold 8,735 shares of the company’s stock in a transaction that recorded on November 5th, 2019. The sale was performed at an average price of 23.24, for a total value of 203,001. As the sale deal closes, the Director Carter-Miller Jocelyn now sold 5,000 shares of the company’s stock, valued at 117,504. Also, EVP & CFO Mergenthaler Frank sold 50,000 shares of the company’s stock in a deal that was recorded on August 21st, 2019. The shares were sold at an average price of 22.46 per share, with a total market value of 101,933. Following this completion of acquisition, the Director now holds 8,392 shares of the company’s stock, valued at 201,744. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.
1 out of 12 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on The Interpublic Group of Companies, Inc. stock. 0 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 $25.23.