Ameritas Advisory Services LLC Acquires 23,228 Shares of Omnicom Group Inc. $OMC

Key Points

• Ameritas Advisory Services LLC dramatically increased its Omnicom Group position in the fourth quarter, buying 23,228 shares and lifting its stake to 23,263 shares worth about $1.88 million.
• Omnicom Group reported better-than-expected quarterly results, with earnings per share of $1.90 versus the $1.84 estimate and revenue of $6.24 billion versus $5.85 billion expected.
• The company approved a $5 billion share repurchase program and also declared a quarterly dividend of $0.80 per share, implying a 4.3% annualized yield.

Ameritas Advisory Services LLC lifted its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 66,365.7% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 23,263 shares of the business services provider's stock after purchasing an additional 23,228 shares during the period. Ameritas Advisory Services LLC's holdings in Omnicom Group were worth $1,878,000 at the end of the most recent reporting period.

Other large investors have also recently bought and sold shares of the company. Activest Wealth Management raised its holdings in Omnicom Group by 2,960.0% during the fourth quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock valued at $25,000 after buying an additional 296 shares in the last quarter. Bayforest Capital Ltd acquired a new stake in shares of Omnicom Group in the fourth quarter worth about $26,000. Cornerstone Planning Group LLC boosted its stake in shares of Omnicom Group by 2,126.7% during the 3rd quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock worth $27,000 after acquiring an additional 319 shares in the last quarter. Legacy Wealth Managment LLC ID boosted its stake in shares of Omnicom Group by 111.4% during the 4th quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider's stock worth $27,000 after acquiring an additional 176 shares in the last quarter. Finally, Meeder Asset Management Inc. increased its holdings in shares of Omnicom Group by 289.4% during the 3rd quarter. Meeder Asset Management Inc. now owns 366 shares of the business services provider's stock valued at $30,000 after acquiring an additional 272 shares during the last quarter. 91.97% of the stock is currently owned by institutional investors.

Omnicom Group Stock Down 2.3%

Shares of OMC opened at $74.32 on Thursday. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.77 and a current ratio of 0.91. The company has a 50-day simple moving average of $77.36 and a 200-day simple moving average of $76.67. Omnicom Group Inc. has a 52 week low of $66.33 and a 52 week high of $87.17. The firm has a market capitalization of $21.18 billion, a P/E ratio of 190.56, a P/E/G ratio of 0.46 and a beta of 0.66.

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

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

Omnicom Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Wednesday, June 10th will be issued 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 dividend payout ratio (DPR) is presently 820.51%.

Analysts Set New Price Targets

A number of equities analysts have recently commented on OMC shares. Argus raised shares of Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Morgan Stanley upped their price objective on shares of Omnicom Group from $82.00 to $83.00 and gave the stock an "equal weight" rating in a report on Friday, May 1st. Citigroup lowered their target price on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research note on Thursday, April 30th. Barclays boosted their target price 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. Finally, UBS Group boosted their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $93.71.

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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