Assetmark Inc. Increases Holdings in Omnicom Group Inc. $OMC

Key Points

• Assetmark Inc. raised its stake in Omnicom by 9.5% in Q4 to 862,779 shares, equal to about 0.45% of the company and worth roughly $69.7 million.
• Omnicom's most recent quarter showed an EPS of $2.59 and revenue of $5.53 billion, both below analysts' estimates ($2.94 EPS and $7.58 billion revenue), though revenue was up 27.9% year-over-year.
• The board approved a $5.00 billion share repurchase plan (up to 38.1% of shares) and the company pays a $0.80 quarterly dividend, implying a roughly 4.2% yield.

Assetmark Inc. grew its holdings in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 9.5% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 862,779 shares of the business services provider's stock after buying an additional 74,949 shares during the period. Assetmark Inc. owned 0.45% of Omnicom Group worth $69,669,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently bought and sold shares of the company. Oppenheimer Asset Management Inc. lifted its holdings in Omnicom Group by 15.3% during the 3rd quarter. Oppenheimer Asset Management Inc. now owns 108,310 shares of the business services provider's stock worth $8,831,000 after buying an additional 14,368 shares during the last quarter. Principal Financial Group Inc. boosted its stake in Omnicom Group by 18.7% in the third quarter. Principal Financial Group Inc. now owns 1,877,462 shares of the business services provider's stock valued at $153,068,000 after acquiring an additional 295,379 shares in the last quarter. Jackson Creek Investment Advisors LLC acquired a new position in Omnicom Group in the third quarter valued at $870,000. AustralianSuper Pty Ltd boosted its stake in Omnicom Group by 24.2% in the third quarter. AustralianSuper Pty Ltd now owns 129,755 shares of the business services provider's stock valued at $10,579,000 after acquiring an additional 25,317 shares in the last quarter. Finally, National Pension Service boosted its stake in Omnicom Group by 35.3% in the third quarter. National Pension Service now owns 111,161 shares of the business services provider's stock valued at $9,063,000 after acquiring an additional 29,014 shares in the last quarter. 91.97% of the stock is owned by hedge funds and other institutional investors.

Omnicom Group Price Performance

Shares of NYSE:OMC opened at $76.19 on Tuesday. The company has a 50-day simple moving average of $76.57 and a 200-day simple moving average of $76.89. Omnicom Group Inc. has a one year low of $66.33 and a one year high of $87.17. 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 has a market capitalization of $21.71 billion, a price-to-earnings ratio of 155.49, a PEG ratio of 0.61 and a beta of 0.73.

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

Omnicom Group announced that its Board of Directors has approved a share repurchase plan on Wednesday, February 18th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the business services provider to repurchase up to 38.1% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board believes its shares are undervalued.

Omnicom Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Stockholders of record on Wednesday, March 11th were issued a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend was Wednesday, March 11th. Omnicom Group's dividend payout ratio is presently 653.06%.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on OMC shares. Bank of America restated an "underperform" rating and issued a $77.00 price objective (down from $87.00) on shares of Omnicom Group in a research note on Monday, January 5th. Morgan Stanley started coverage on shares of Omnicom Group in a research note on Tuesday, December 16th. They issued an "equal weight" rating and a $88.00 price objective for the company. Argus upgraded shares of Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Citigroup upped their price objective on shares of Omnicom Group from $103.00 to $115.00 and gave the company a "buy" rating in a research note on Friday, February 20th. Finally, Barclays upped their price objective on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research note on Monday, February 23rd. Four investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $95.86.

Omnicom Group Company 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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