AE Wealth Management LLC Purchases 25,294 Shares of Omnicom Group Inc. $OMC

Key Points

• AE Wealth Management increased its Omnicom stake by 8.7%, buying 25,294 shares to hold 315,475 shares valued at about $25.48 million (≈0.16% of the company).
• Omnicom declared a quarterly dividend of $0.80 (annualized $3.20, yield 4.1%) and authorized a $5.0 billion share buyback program (up to ~38.1% of outstanding shares), signaling management may view the stock as undervalued.
• Institutional ownership is high at 91.97%, several large managers recently increased stakes, and analysts' consensus is a "Hold" with an average target price of $95.86 versus the recent share price near $78.62.

AE Wealth Management LLC increased its position in Omnicom Group Inc. (NYSE:OMC - Free Report) by 8.7% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 315,475 shares of the business services provider's stock after acquiring an additional 25,294 shares during the quarter. AE Wealth Management LLC owned about 0.16% of Omnicom Group worth $25,475,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of OMC. State Street Corp raised its stake in Omnicom Group by 15.8% in the third quarter. State Street Corp now owns 16,863,327 shares of the business services provider's stock valued at $1,384,980,000 after purchasing an additional 2,298,652 shares in the last quarter. JPMorgan Chase & Co. raised its stake in Omnicom Group by 30.5% in the third quarter. JPMorgan Chase & Co. now owns 8,107,021 shares of the business services provider's stock valued at $660,969,000 after purchasing an additional 1,893,316 shares in the last quarter. Massachusetts Financial Services Co. MA raised its stake in Omnicom Group by 5.8% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 7,870,437 shares of the business services provider's stock valued at $635,538,000 after purchasing an additional 433,461 shares in the last quarter. Bank of New York Mellon Corp raised its stake in Omnicom Group by 73.6% in the third quarter. Bank of New York Mellon Corp now owns 6,652,469 shares of the business services provider's stock valued at $542,376,000 after purchasing an additional 2,820,553 shares in the last quarter. Finally, First Eagle Investment Management LLC purchased a new stake in Omnicom Group in the third quarter valued at approximately $515,145,000. 91.97% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the stock. Argus raised shares of Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. UBS Group raised their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Barclays lifted their price target on shares of Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a research note on Monday, February 23rd. Weiss Ratings reissued a "hold (c)" rating on shares of Omnicom Group in a research note on Thursday, January 22nd. Finally, Citigroup lifted their price target on shares of Omnicom Group from $103.00 to $115.00 and gave the stock a "buy" rating in a research note on Friday, February 20th. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Omnicom Group presently has an average rating of "Hold" and an average target price of $95.86.

Omnicom Group Stock Performance

Shares of Omnicom Group stock opened at $78.62 on Friday. The stock has a market cap of $22.40 billion, a price-to-earnings ratio of 160.44, a PEG ratio of 0.65 and a beta of 0.73. The firm's 50-day moving average is $77.27 and its 200 day moving average is $76.90. Omnicom Group Inc. has a 1 year low of $66.33 and a 1 year high of $87.17. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.93 and a quick ratio of 0.81.

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

Omnicom Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Wednesday, March 11th were paid a $0.80 dividend. The ex-dividend date was Wednesday, March 11th. This represents a $3.20 dividend on an annualized basis and a yield of 4.1%. Omnicom Group's payout ratio is presently 653.06%.

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

About Omnicom Group

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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