Zacks Research Forecasts Decline in IPG Q1 Earnings

On March 5, 2025, Zacks Research announced a downward revision of its earnings estimates for the Interpublic Group of Companies, Inc. (NYSE:IPG). The analysts at Zacks now predict that IPG will report earnings of $0.37 per share for the first quarter of 2025, significantly lower than their previous estimate of $0.59 per share. This revision reflects growing concerns about the business services provider's performance in the near term. The current consensus among analysts for IPG's full-year earnings stands at $2.66 per share. In addition, Zacks Research has projected that IPG’s earnings for the fourth quarter of 2025 will reach $0.84 per share.

Several other financial institutions have also recently adjusted their perspectives on Interpublic Group. For instance, JPMorgan Chase & Co. upgraded IPG from a “neutral” to an “overweight” rating, while also increasing their price target from $32.00 to $39.00 in late January. Likewise, Wells Fargo & Company elevated their rating from “underweight” to “equal weight” and revised their price target from $26.00 to $34.00. Barclays took a similar route, moving from an “equal weight” rating to “overweight” and raising their price target from $32.00 to $36.00. Conversely, UBS Group downgraded their stance from “sell” to “neutral”, reducing the price target from $29.00 to $27.00. BNP Paribas also improved their outlook, moving from “underperform” to “outperform” with a price target of $38.00. Currently, market data shows that one analyst holds a sell rating on IPG, five have provided hold ratings, while four analysts have issued buy ratings. The consensus rating remains at “Hold” with an average target price of $33.50 according to MarketBeat.com.

Recent Stock Performance

Interpublic Group shares saw a 3.2% increase on a recent Friday, opening at $28.20. The stock's 50-day moving average is $27.74, and the 200-day moving average stands at $29.48. IPG boasts a market capitalization of $10.51 billion, with a price-to-earnings ratio of 15.41 and a beta of 1.14. Additionally, the stock has experienced a 12-month low of $26.15 and a high of $35.17. Financial metrics indicate a quick ratio of 1.09, a current ratio of 1.09, and a debt-to-equity ratio of 0.77.

Dividend and Share Buyback Plans

In recent announcements, Interpublic Group declared a quarterly dividend to be paid on March 17th, with shareholders of record as of March 3rd set to receive $0.33 per share. This dividend equates to an annualized rate of $1.32, resulting in a dividend yield of 4.68%. The ex-dividend date was also March 3rd, and the company’s payout ratio is reported at 72.13%. Additionally, on February 12th, Interpublic Group’s board approved a share buyback initiative allowing the company to repurchase $155 million in outstanding shares, equating to about 1.6% of its shares. Such buyback programs often suggest that a company believes its stock is undervalued, an encouraging sign for potential investors.

Insider Trading Activity

In insider trading news, CFO Ellen Tobi Johnson sold 21,427 shares of IPG stock on March 3rd at an average price of $26.82, totaling approximately $574,672. Following this sale, Johnson retains ownership of 143,373 shares valued at around $3,845,263. This transaction reflects a 13% decrease in her ownership stake, which has been documented in a filing with the SEC. Currently, corporate insiders hold about 0.42% of the company’s total shares.

Institutional Ownership Insights

Recent data indicates that several large institutional investors have adjusted their holdings of IPG. Catalyst Capital Advisors LLC initiated a new stake in Interpublic Group in the third quarter, while Allworth Financial LP increased its position by 75.8% in the fourth quarter. Allworth now owns 1,113 shares valued at approximately $31,000 after acquiring an additional 480 shares. Other notable acquisitions include newcomer Ashton Thomas Securities LLC and increasing investments from OFI Invest Asset Management and Raiffeisen Bank International AG. Currently, institutional investors control approximately 98.43% of Interpublic Group shares.

Company Overview

The Interpublic Group of Companies, Inc. is a global provider of advertising and marketing services, operating in several segments that include Media, Data & Engagement Solutions, Integrated Advertising & Creativity Led Solutions, and Specialized Communications & Experiential Solutions. The Media, Data & Engagement Solutions segment encompasses media services, digital technologies, advertising, analytics, and more under renowned brand names like IPG Mediabrands and UM.

IPG, Earnings, Forecast