85,344 Shares in Omnicom Group Inc. $OMC Bought by Assenagon Asset Management S.A.

Key Points

• Assenagon Asset Management bought a new stake of 85,344 shares in Omnicom during Q4, valued at about $6.89 million.
• The board approved a $5.0 billion share repurchase, authorizing buybacks of up to 38.1% of outstanding shares, a signal management views the stock as undervalued.
• Omnicom announced a quarterly dividend of $0.80 (annualized $3.20, ~4.3% yield) but recently missed EPS estimates (Q: $2.59 vs. est. $2.94) and shows an unusually high payout ratio (~653%).

Assenagon Asset Management S.A. bought a new stake in Omnicom Group Inc. (NYSE:OMC - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 85,344 shares of the business services provider's stock, valued at approximately $6,892,000.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in OMC. Cornerstone Planning Group LLC lifted its position in Omnicom Group by 2,126.7% during the third quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock valued at $27,000 after buying an additional 319 shares in the last quarter. Meeder Asset Management Inc. increased its position in shares of Omnicom Group by 289.4% in the third quarter. Meeder Asset Management Inc. now owns 366 shares of the business services provider's stock worth $30,000 after acquiring an additional 272 shares in the last quarter. Capital A Wealth Management LLC increased its position in shares of Omnicom Group by 548.3% in the second quarter. Capital A Wealth Management LLC now owns 376 shares of the business services provider's stock worth $27,000 after acquiring an additional 318 shares in the last quarter. Westside Investment Management Inc. raised its stake in shares of Omnicom Group by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 404 shares of the business services provider's stock valued at $31,000 after acquiring an additional 202 shares during the period. Finally, Wealth Watch Advisors INC purchased a new position in shares of Omnicom Group in the 3rd quarter valued at $34,000. 91.97% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Argus raised shares of Omnicom Group to a "hold" rating in a research report on Thursday. Weiss Ratings reissued a "hold (c)" rating on shares of Omnicom Group in a research report on Thursday, January 22nd. UBS Group upped their target price on Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Barclays increased their target price on Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research note on Monday, February 23rd. Finally, Citigroup raised their target price on Omnicom Group from $103.00 to $115.00 and gave the company a "buy" rating in a report on Friday, February 20th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Omnicom Group currently has a consensus rating of "Hold" and a consensus price target of $95.86.

Omnicom Group Price Performance

OMC stock opened at $73.85 on Friday. The stock's 50 day moving average is $77.16 and its two-hundred day moving average is $76.96. Omnicom Group Inc. has a 52-week low of $66.33 and a 52-week high of $87.17. The company has a market capitalization of $22.92 billion, a PE ratio of 150.70, a P/E/G ratio of 0.61 and a beta of 0.71. The company has a quick ratio of 0.81, a current ratio of 0.93 and a debt-to-equity ratio of 0.60.

Omnicom Group (NYSE:OMC - Get Free Report) last released its earnings results on Wednesday, February 18th. The business services provider reported $2.59 EPS for the quarter, missing the consensus estimate of $2.94 by ($0.35). The business had revenue of $5.53 billion for the quarter, compared to analysts' expectations of $7.58 billion. Omnicom Group had a negative net margin of 0.32% and a positive return on equity of 25.65%. The business's quarterly revenue was up 27.9% compared to the same quarter last year. During the same quarter last year, the company posted $2.41 earnings per share. Analysts predict that Omnicom Group Inc. will post 8.25 earnings per share for the current fiscal year.

Omnicom Group declared that its board has approved a share repurchase program on Wednesday, February 18th that permits the company to buyback $5.00 billion in outstanding shares. This buyback authorization permits the business services provider to buy up to 38.1% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Omnicom Group Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Wednesday, March 11th will be given a $0.80 dividend. The ex-dividend date of this dividend is Wednesday, March 11th. This represents a $3.20 annualized dividend and a dividend yield of 4.3%. Omnicom Group's payout ratio is presently 653.06%.

Omnicom Group Profile

Omnicom Group Inc NYSE: OMC is a global marketing and corporate communications holding company headquartered in New York City. Founded in 1986 through the merger of the BBDO, DDB and Needham Harper agencies, Omnicom has built a portfolio of leading brands and networks serving clients across diverse industries.

The company's primary business activities encompass advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and customer relationship management.

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