Zacks Research Has Negative Forecast for IPG Q1 Earnings

On March 5th, 2025, Zacks Research published a report indicating a downcast forecast for the Q1 2025 earnings of the Interpublic Group of Companies, Inc. (NYSE:IPG). According to their analysis, Zacks analyst R. Department has downgraded the expected earnings per share (EPS) for this quarter, predicting that IPG will earn $0.37 per share. This marks a significant reduction from their previous estimate of $0.59 per share. The consensus estimate for Interpublic's full-year earnings stands at $2.66 per share. Furthermore, Zacks has also issued projections for IPG's Q4 2025 earnings, which are now expected to be at $0.84 EPS.

Several other financial research firms have also recently provided insights on the stock. For instance, on January 27th, JPMorgan Chase & Co. upgraded their rating for IPG from “neutral” to “overweight” and lifted their price target for the stock from $32.00 to $39.00. Similarly, Wells Fargo & Co. increased their recommendation from “underweight” to “equal weight,” raising their price target from $26.00 to $34.00 in a report released on December 10th. Barclays also upgraded its rating from “equal weight” to “overweight,” while increasing the target price from $32.00 to $36.00 in a note dated January 24th. Conversely, UBS Group lowered their price target on IPG from $29.00 to $27.00, although they upgraded their recommendation from “sell” to “neutral” on February 13th. Lastly, BNP Paribas adjusted their rating from “underperform” to “outperform,” establishing a price goal of $38.00 for the stock. Currently, one analyst has rated the stock as a sell, five have assigned a hold rating, and four analysts endorse buying the shares. MarketBeat.com indicates that IPG has a consensus rating of "Hold" and an average target price of $33.50.

Current Stock Performance

On the trading day following the announcement, IPG shares opened at $28.20. The stock has exhibited a moving average of $27.74 over the last 50 days and $29.48 over the past 200 days. IPG has a market capitalization of approximately $10.51 billion, a price-to-earnings ratio of 15.41, and a beta of 1.14. Over the past year, the shares reached a low of $26.15 and a high of $35.17. Financial metrics reveal a quick ratio of 1.09 and a current ratio of 1.09, with a debt-to-equity ratio of 0.77.

IPG's most recent earnings report, dated February 12th, revealed quarterly earnings of $1.11 per share, which fell short of the consensus estimate of $1.15 by $0.04. The company showed a return on equity of 27.10% and a net margin of 6.45%.

Dividends and Share Buyback Initiatives

On March 17th, IPG will distribute a quarterly dividend of $0.33, payable to investors who were on record by March 3rd. This dividend translates into an annual payout of $1.32 and a dividend yield of 4.68%. Additionally, the company has announced a share buyback plan that will allow for the repurchase of up to $155.00 million in shares. This plan may reflect management's belief that the stock is undervalued.

Insider Trading Activity

In related news, CFO Ellen Tobi Johnson sold 21,427 shares of IPG stock on March 3rd at an average price of $26.82, totaling around $574,672.14. Following this transaction, she now holds 143,373 shares valued at approximately $3,845,263.86, indicating a 13.00% decrease in her ownership. This transaction was reported to the SEC.

Institutional Ownership Update

Recent institutional trading activities have seen several investors adjust their holdings in IPG. Catalyst Capital Advisors LLC established a new position in the third quarter, while Allworth Financial LP increased its ownership by 75.8% in the fourth quarter. Ashton Thomas Securities LLC and OFI Invest Asset Management also bought new positions in the stock during the third and fourth quarters, respectively. Notably, institutional investors own about 98.43% of IPG stock.

Company Overview

The Interpublic Group of Companies, Inc. specializes in providing advertising and marketing services globally. The organization operates through three main segments: Media, Data & Engagement Solutions, Integrated Advertising & Creativity Led Solutions, and Specialized Communications & Experiential Solutions. Through its various subsidiaries such as IPG Mediabrands, UM, Initiative, Kinesso, Acxiom, Huge, MRM, and R/GA, Interpublic delivers a comprehensive range of media and digital services.

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