Omnicom Group Inc. (NYSE:OMC) Stock Rated "Hold" by Sell-Side Analysts

Key Points

• Analysts maintain a “Hold” consensus on Omnicom Group, with two sell, five hold and four buy ratings. The average 12-month price target is $99, compared with the stock’s reported $74.67 opening price.
• Omnicom’s latest quarterly results were mixed: revenue rose 63.4% year over year to $6.56 billion and exceeded estimates, while earnings per share of $2.65 narrowly missed consensus by $0.02.
• The company declared a quarterly dividend of $0.80 per share, or $3.20 annualized, representing a 4.3% yield; however, its dividend payout ratio remains elevated at 275.86%.

Shares of Omnicom Group Inc. (NYSE:OMC - Get Free Report) have received a consensus recommendation of "Hold" from the eleven brokerages that are currently covering the firm, MarketBeat.com reports. Two research analysts have rated the stock with a sell recommendation, five have assigned a hold recommendation and four have issued a buy recommendation on the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $99.00.

Several analysts recently commented on the stock. Weiss Ratings raised shares of Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 30th. Rothschild & Co Redburn initiated coverage on shares of Omnicom Group in a report on Thursday, May 28th. They issued a "neutral" rating and a $89.00 target price for the company. Citigroup dropped their target price on shares of Omnicom Group from $105.00 to $100.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Zacks Research cut shares of Omnicom Group from a "hold" rating to a "strong sell" rating in a report on Thursday, July 30th. Finally, The Goldman Sachs Group started coverage on shares of Omnicom Group in a research report on Wednesday, June 3rd. They set a "buy" rating and a $146.00 price target for the company.

Omnicom Group Trading Down 1.1%

Omnicom Group stock opened at $74.67 on Friday. The company has a current ratio of 0.92, a quick ratio of 0.78 and a debt-to-equity ratio of 0.97. The business's fifty day simple moving average is $82.55 and its two-hundred day simple moving average is $78.44. Omnicom Group has a 12 month low of $66.33 and a 12 month high of $89.57. The company has a market capitalization of $20.49 billion, a price-to-earnings ratio of 64.37, a price-to-earnings-growth ratio of 0.64 and a beta of 0.65.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The business services provider reported $2.65 earnings per share for the quarter, missing the consensus estimate of $2.67 by ($0.02). The company had revenue of $6.56 billion for the quarter, compared to the consensus estimate of $6.44 billion. Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. Omnicom Group's revenue was up 63.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.05 earnings per share. As a group, equities analysts predict that Omnicom Group will post 10.5 earnings per share for the current fiscal year.

Omnicom Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 18th will be paid a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 4.3%. The ex-dividend date is Friday, September 18th. Omnicom Group's dividend payout ratio (DPR) is currently 275.86%.

Insider Activity at Omnicom Group

In other news, Director Linda Rice sold 1,385 shares of the business's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $88.73, for a total value of $122,891.05. Following the completion of the transaction, the director owned 11,719 shares in the company, valued at $1,039,826.87. The trade was a 10.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 1.20% of the company's stock.

Institutional Investors Weigh In On Omnicom Group

Several institutional investors have recently modified their holdings of the business. BlackRock Inc. bought a new position in Omnicom Group during the second quarter valued at approximately $2,082,476,000. Bank of New York Mellon Corp bought a new stake in Omnicom Group in the 2nd quarter worth approximately $914,156,000. Geode Capital Management LLC grew its position in Omnicom Group by 57.1% in the 4th quarter. Geode Capital Management LLC now owns 8,578,075 shares of the business services provider's stock worth $690,327,000 after purchasing an additional 3,117,188 shares during the period. Goldman Sachs Group Inc. raised its stake in Omnicom Group by 89.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 6,106,022 shares of the business services provider's stock valued at $493,061,000 after buying an additional 2,883,520 shares during the last quarter. Finally, Capital Research Global Investors raised its stake in Omnicom Group by 60.1% during the 4th quarter. Capital Research Global Investors now owns 4,691,101 shares of the business services provider's stock valued at $378,806,000 after buying an additional 1,760,469 shares during the last quarter. 91.97% of the stock is owned by hedge funds and other institutional investors.

Omnicom Group Company Profile

Omnicom Group Inc NYSE: OMC is a global marketing and communications holding company. Through a network of agencies and specialized businesses, it provides advertising, branding, media planning and buying, public relations, customer relationship management, digital marketing, experiential marketing and healthcare communications services.

Omnicom's agency brands have included BBDO Worldwide, DDB Worldwide, TBWA\Worldwide, Omnicom Media Group, FleishmanHillard and Ketchum. These businesses serve clients across industries, including consumer products, healthcare, technology, financial services, automotive and telecommunications, helping organizations develop brand strategies, create campaigns and engage audiences through traditional and digital channels.

Omnicom was formed in 1986 through the merger of advertising companies BBDO, Doyle Dane Bernbach and Needham Harper Worldwide.

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