AEGON ASSET MANAGEMENT UK Plc Reduces Stake in Omnicom Group Inc. $OMC

Key Points

• AEGON Asset Management UK Plc reduced its stake in Omnicom Group by 3.7%, selling 13,369 shares to hold 345,344 shares (about 0.18%) valued at roughly $27.9 million at quarter-end.
• Vanguard significantly increased its position, boosting holdings 64.2% to 38,934,118 shares (≈ $3.14 billion), and institutional investors now own about 91.97% of Omnicom's stock.
• Omnicom missed quarterly expectations (EPS $2.59 vs. $2.94 and revenue $5.53B vs. $7.58B), but declared a $0.80 quarterly dividend (4.2% yield) and authorized a $5.0 billion share repurchase.

AEGON ASSET MANAGEMENT UK Plc lessened its position in Omnicom Group Inc. (NYSE:OMC - Free Report) by 3.7% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 345,344 shares of the business services provider's stock after selling 13,369 shares during the quarter. AEGON ASSET MANAGEMENT UK Plc owned approximately 0.18% of Omnicom Group worth $27,890,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. lifted its stake in shares of Omnicom Group by 64.2% in the 4th quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider's stock valued at $3,143,930,000 after purchasing an additional 15,220,444 shares during the period. Resonant Capital Advisors LLC lifted its stake in shares of Omnicom Group by 13.1% in the 4th quarter. Resonant Capital Advisors LLC now owns 7,942 shares of the business services provider's stock valued at $647,000 after purchasing an additional 917 shares during the period. Concurrent Investment Advisors LLC lifted its stake in shares of Omnicom Group by 75.6% in the 4th quarter. Concurrent Investment Advisors LLC now owns 8,937 shares of the business services provider's stock valued at $722,000 after purchasing an additional 3,849 shares during the period. ProVise Management Group LLC lifted its stake in shares of Omnicom Group by 5.5% in the 4th quarter. ProVise Management Group LLC now owns 139,716 shares of the business services provider's stock valued at $11,282,000 after purchasing an additional 7,286 shares during the period. Finally, NBC Securities Inc. lifted its stake in shares of Omnicom Group by 48.2% in the 4th quarter. NBC Securities Inc. now owns 5,101 shares of the business services provider's stock valued at $412,000 after purchasing an additional 1,659 shares during the period. Hedge funds and other institutional investors own 91.97% of the company's stock.

Analyst Ratings Changes

A number of research analysts have issued reports on OMC shares. Bank of America reiterated an "underperform" rating and set a $77.00 price objective (down from $87.00) on shares of Omnicom Group in a research note on Monday, January 5th. Argus upgraded Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. UBS Group lifted their price objective on Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Barclays upped their price target on Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a report on Monday, February 23rd. Finally, Citigroup upped their price target on Omnicom Group from $103.00 to $115.00 and gave the company a "buy" rating in a report 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 given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $95.86.

Omnicom Group Trading Down 1.4%

Shares of NYSE:OMC opened at $75.73 on Friday. The stock has a market capitalization of $21.58 billion, a price-to-earnings ratio of 154.54, a PEG ratio of 0.59 and a beta of 0.73. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.81 and a current ratio of 0.93. The stock's 50-day simple moving average is $78.02 and its two-hundred day simple moving average is $76.85. Omnicom Group Inc. has a 52-week low of $66.33 and a 52-week high of $87.17.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.94 by ($0.35). Omnicom Group had a positive return on equity of 25.65% and a negative net margin of 0.32%.The firm had revenue of $5.53 billion during the quarter, compared to analysts' expectations of $7.58 billion. During the same period in the previous year, the business posted $2.41 earnings per share. The company's revenue for the quarter was up 27.9% on a year-over-year basis. Analysts expect that Omnicom Group Inc. will post 10.92 EPS for the current year.

Omnicom Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, April 9th. Shareholders of record on Wednesday, March 11th were issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 4.2%. The ex-dividend date of this dividend was Wednesday, March 11th. Omnicom Group's payout ratio is currently 653.06%.

Omnicom Group declared that its board has authorized a share repurchase program on Wednesday, February 18th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the business services provider to reacquire up to 38.1% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership 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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