Allstate Corp Raises Position in Omnicom Group Inc. $OMC

Key Points

• Allstate Corp boosted its stake in Omnicom Group by 242.7% in the fourth quarter, ending with 24,088 shares valued at about $1.95 million.
• Other institutional investors also increased holdings, and 91.97% of Omnicom’s stock is now owned by hedge funds and other institutions.
• Omnicom recently beat earnings expectations, announced a $0.80 quarterly dividend, and authorized a $5 billion share buyback; analysts currently rate the stock a consensus “Hold” with an average target price of $93.13.

Allstate Corp grew its position in Omnicom Group Inc. (NYSE:OMC - Free Report) by 242.7% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 24,088 shares of the business services provider's stock after buying an additional 17,059 shares during the period. Allstate Corp's holdings in Omnicom Group were worth $1,945,000 as of its most recent SEC filing.

Several other large investors have also bought and sold shares of OMC. Oppenheimer Asset Management Inc. lifted its position in shares of Omnicom Group by 15.3% during the third quarter. Oppenheimer Asset Management Inc. now owns 108,310 shares of the business services provider's stock worth $8,831,000 after purchasing an additional 14,368 shares in the last quarter. Principal Financial Group Inc. lifted its position in shares of Omnicom Group by 18.7% during the third quarter. Principal Financial Group Inc. now owns 1,877,462 shares of the business services provider's stock worth $153,068,000 after purchasing an additional 295,379 shares in the last quarter. Jackson Creek Investment Advisors LLC acquired a new stake in shares of Omnicom Group during the third quarter worth about $870,000. AustralianSuper Pty Ltd lifted its position in shares of Omnicom Group by 24.2% during the third quarter. AustralianSuper Pty Ltd now owns 129,755 shares of the business services provider's stock worth $10,579,000 after purchasing an additional 25,317 shares in the last quarter. Finally, National Pension Service lifted its position in shares of Omnicom Group by 35.3% during the third quarter. National Pension Service now owns 111,161 shares of the business services provider's stock worth $9,063,000 after purchasing an additional 29,014 shares in the last quarter. 91.97% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages have recently issued reports on OMC. Barclays increased 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 report on Monday, February 23rd. Weiss Ratings restated a "hold (c-)" rating on shares of Omnicom Group in a research note on Friday, May 22nd. Argus upgraded shares of Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Morgan Stanley upped their target price on shares of Omnicom Group from $82.00 to $83.00 and gave the stock an "equal weight" rating in a research note on Friday, May 1st. Finally, UBS Group upped their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research note on Friday, March 20th. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Omnicom Group currently has a consensus rating of "Hold" and an average target price of $93.13.

Omnicom Group Stock Performance

Shares of Omnicom Group stock opened at $74.09 on Friday. The firm has a market capitalization of $21.12 billion, a P/E ratio of 189.98, a P/E/G ratio of 0.45 and a beta of 0.66. Omnicom Group Inc. has a 52 week low of $66.33 and a 52 week high of $87.17. The company has a quick ratio of 0.77, a current ratio of 0.91 and a debt-to-equity ratio of 0.99. The firm's 50 day moving average is $75.55 and its two-hundred day moving average is $76.52.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its earnings results on Wednesday, April 29th. The business services provider reported $1.90 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.84 by $0.06. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The business had revenue of $6.24 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same period last year, the firm posted $1.70 earnings per share. The company's revenue for the quarter was up 69.2% compared to the same quarter last year. Research analysts forecast that Omnicom Group Inc. will post 10.97 EPS for the current fiscal year.

Omnicom Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Wednesday, June 10th will be paid a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 4.3%. The ex-dividend date of this dividend is Wednesday, June 10th. Omnicom Group's payout ratio is 820.51%.

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