Axiom Investment Management LLC Purchases Shares of 31,547 Omnicom Group Inc. $OMC

Key Points

• Axiom Investment Management initiated a position in Omnicom Group, buying 31,547 shares worth approximately $2.38 million. The stock now represents 1.8% of Axiom’s portfolio, while institutional investors collectively own 91.97% of OMC.
• Analyst sentiment is mixed: four analysts rate OMC a Buy, five rate it Hold and one rates it Sell, producing a consensus “Hold” rating and an average price target of $99 versus the recent $78.86 share price.
• Omnicom reported $6.56 billion in quarterly revenue, up 63.4% year over year and above estimates, but EPS of $2.65 narrowly missed expectations. The company also declared a quarterly dividend of $0.80, equivalent to a 4.1% annualized yield.

Axiom Investment Management LLC bought a new position in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 31,547 shares of the business services provider's stock, valued at approximately $2,376,000. Omnicom Group accounts for 1.8% of Axiom Investment Management LLC's investment portfolio, making the stock its 14th largest position.

Several other large investors also recently modified their holdings of OMC. Activest Wealth Management boosted its holdings in Omnicom Group by 2,960.0% in the fourth quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock valued at $25,000 after acquiring an additional 296 shares in the last quarter. Bayforest Capital Ltd purchased a new stake in shares of Omnicom Group in the 4th quarter worth about $26,000. Elyxium Wealth LLC bought a new stake in shares of Omnicom Group during the 4th quarter valued at about $26,000. 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 valued at $27,000 after purchasing an additional 176 shares in the last quarter. Finally, EFG International AG purchased a new position in shares of Omnicom Group during the fourth quarter valued at about $28,000. 91.97% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

OMC has been the subject of a number of research reports. The Goldman Sachs Group started coverage on shares of Omnicom Group in a research note on Wednesday, June 3rd. They issued a "buy" rating and a $146.00 price target for the company. Citigroup cut their price objective on Omnicom Group from $105.00 to $100.00 and set a "buy" rating on the stock in a research report on Thursday. Rothschild & Co Redburn began coverage on Omnicom Group in a report on Thursday, May 28th. They set a "neutral" rating and a $89.00 target price on the stock. Wells Fargo & Company increased their target price on Omnicom Group from $91.00 to $93.00 and gave the stock an "overweight" rating in a research report on Thursday. Finally, Morgan Stanley raised their target price on Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a research note on Friday, May 1st. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $99.00.

Omnicom Group Stock Down 0.9%

OMC stock opened at $78.86 on Friday. The business has a 50 day moving average of $77.29 and a 200 day moving average of $76.89. The firm has a market cap of $21.64 billion, a PE ratio of 67.98, a price-to-earnings-growth ratio of 0.53 and a beta of 0.63. Omnicom Group Inc. has a twelve month low of $66.33 and a twelve month high of $87.41. The company has a quick ratio of 0.77, a current ratio of 0.92 and a debt-to-equity ratio of 0.97.

Omnicom Group (NYSE:OMC - Get Free Report) last released its earnings results on Tuesday, July 28th. The business services provider reported $2.65 EPS for the quarter, missing the consensus estimate of $2.67 by ($0.02). Omnicom Group had a return on equity of 24.73% and a net margin of 1.74%.The company had revenue of $6.56 billion during the quarter, compared to the consensus estimate of $6.44 billion. During the same period last year, the firm posted $2.05 earnings per share. The company's revenue was up 63.4% compared to the same quarter last year. On average, research analysts forecast that Omnicom Group Inc. will post 10.35 EPS for the current fiscal year.

Omnicom Group Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Friday, September 18th will be paid a $0.80 dividend. The ex-dividend date is Friday, September 18th. This represents a $3.20 dividend on an annualized basis and a yield of 4.1%. Omnicom Group's payout ratio is presently 275.86%.

More Omnicom Group News

Here are the key news stories impacting Omnicom Group this week:

• Positive Sentiment: Wells Fargo raised its price target for Omnicom Group to $93 from $91 and maintained an “overweight” rating, citing potential upside from the company’s operating outlook. Wells Fargo price-target update
• Positive Sentiment: Citigroup lowered its target to $100 from $105 but retained a “buy” rating. The reduced target still implies substantial upside and suggests analysts view the recent weakness as an opportunity rather than a fundamental break in the investment case. Citigroup price-target update
• Positive Sentiment: Analysts highlighted Omnicom’s data and analytics investments, integrated media capabilities and merger-related cost synergies as potential drivers of longer-term revenue growth and profitability. Omnicom data and analytics outlook
• Neutral Sentiment: Omnicom’s latest quarter produced $6.56 billion in revenue, above the $6.44 billion consensus and up 63.4% year over year, while EPS of $2.65 narrowly missed the $2.67 estimate. The mixed result helps explain why strong sales growth has not translated into a clear stock catalyst. Omnicom Q2 earnings call highlights
• Neutral Sentiment: International revenue remains an important factor in Wall Street’s forecasts, making foreign-market performance and currency or regional risks relevant to the stock’s outlook. Omnicom international revenue analysis
• Negative Sentiment: Investors remain concerned about higher debt, integration expenses and margin pressure following the merger. Analysts have also trimmed estimates, creating uncertainty over how quickly anticipated synergies will improve earnings. Omnicom valuation analysis
• Negative Sentiment: Some commentary argues that OMC’s valuation and recent multiyear gains leave the shares vulnerable to profit-taking if organic growth or post-merger execution disappoints. Omnicom valuation commentary

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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