Shares of The Interpublic Group of Companies (NYSE:IPG) are down nearly 8.5% at the time of writing today after IPG posted a mixed set of second-quarter numbers. Revenue dropped 2.1% year-over-year to $2.33 billion, lagging estimates by $60 million. EPS at $0.74, on the other hand, outperformed expectations by $0.14.
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IPG is witnessing an impact on certain of its specialty assets and traditional consumer agencies amidst heightened macro challenges. Additionally, headwinds in the technology sector continue to impact its growth.
Against this backdrop, IPG has now revised its organic growth outlook for the full year to 1% to 2%. At the end of June 2023, the company had a cash pile of $1.63 billion while total debt stood at $3.20 billion. Significantly, this is an increase of nearly $280 million in IPG’s debt as compared to the year-ago quarter.
Is IPG Stock a Good Investment?
Assessing whether Interpublic Group’s stock is a worthwhile investment can be aided by TipRanks’ unique data sets. In the past three months, 5 analysts have provided ratings for IPG stock. When these ratings are combined into a consensus, the consensus rating for Interpublic Group’s stock is considered to be a Moderate Buy.
It is worth noting that over the past year, the most profitable analyst covering IPG stock has been Jason Bazinet, with an average one-year return of 36.24% on their calls regarding IPG stock. If one were to replicate Jason Bazinet’s trades on IPG stock and hold each position for one year, approximately 80.00% of the transactions would generate a profit. Jason Bazinet most recently rated the stock as a Buy 5 months ago.
For further research on IPG stock, it may be beneficial to examine TipRanks’ Smart Score, which predicts the stock’s future performance. With a Smart Score of 9, Interpublic Group’s stock is expected to outperform the market. While past performance does not guarantee future performance, reviewing a stock’s recent price changes can provide insight. Over the past 6 months, IPG’s price has risen by 6.37%. Year-over-year, the stock has experienced a 34.80% increase.
Additionally, monitoring hedge funds‘ trades can be valuable, as hedge fund managers continuously analyze the stock market and often rely on sophisticated investment tools in their research. According to TipRanks’ data, hedge funds reduced their holdings in IPG by -2.59 million shares in the last quarter. Collectively, the actions of these 13 hedge funds reflect a sentiment of Very Negative towards Interpublic Group’s stock.
About Interpublic Group
Interpublic Group of Cos., Inc. is involved in providing advertising and marketing services. The company specializes in consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines. It operates through three segments: Integrated Agency Network (IAN), Constituency Management Group (CMG), and Corporate and Other. The IAN segment encompasses advertising and media services, along with a comprehensive range of global communications and marketing services. The CMG segment offers events and public relations services, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting. The Corporate and Other segment pertains to the activities of Acxiom. Interpublic Group was established on September 18, 1930, and has its headquarters in New York, NY.
