Baird Financial Group Inc. Raises Position in Omnicom Group Inc. $OMC

Key Points

• Baird Financial Group increased its Omnicom stake by 3.0% in the second quarter, bringing its holdings to 4.85 million shares valued at approximately $353.4 million. Institutional investors collectively own 91.97% of OMC.
• Omnicom reported quarterly revenue of $6.56 billion, up 63.4% year over year and above estimates, but earnings of $2.65 per share narrowly missed expectations. The stock opened at $81.22, versus a 52-week range of $66.33 to $89.57.
• The company declared a quarterly dividend of $0.80, equivalent to an annualized $3.20 payout and a 3.9% yield. Analysts maintain a consensus “Hold” rating with an average price target of $99, despite mixed upgrades and downgrades.

Baird Financial Group Inc. lifted its position in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 3.0% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 4,852,121 shares of the business services provider's stock after acquiring an additional 142,082 shares during the quarter. Baird Financial Group Inc. owned 1.77% of Omnicom Group worth $353,380,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the company. Pure Financial Advisors LLC boosted its stake in shares of Omnicom Group by 3.1% in the second quarter. Pure Financial Advisors LLC now owns 4,464 shares of the business services provider's stock valued at $325,000 after buying an additional 135 shares in the last quarter. Tranquilli Financial Advisor LLC raised its position in Omnicom Group by 2.0% in the second quarter. Tranquilli Financial Advisor LLC now owns 7,610 shares of the business services provider's stock worth $554,000 after acquiring an additional 148 shares in the last quarter. Wakefield Asset Management LLLP lifted its holdings in Omnicom Group by 2.6% in the fourth quarter. Wakefield Asset Management LLLP now owns 5,910 shares of the business services provider's stock valued at $477,000 after acquiring an additional 149 shares during the period. Caldwell Trust Co lifted its holdings in Omnicom Group by 29.0% in the first quarter. Caldwell Trust Co now owns 662 shares of the business services provider's stock valued at $50,000 after acquiring an additional 149 shares during the period. Finally, SJS Investment Consulting Inc. boosted its position in shares of Omnicom Group by 39.1% during the 1st quarter. SJS Investment Consulting Inc. now owns 544 shares of the business services provider's stock worth $41,000 after purchasing an additional 153 shares in the last quarter. 91.97% of the stock is owned by hedge funds and other institutional investors.

Omnicom Group Price Performance

Omnicom Group stock opened at $81.22 on Wednesday. Omnicom Group Inc. has a 52 week low of $66.33 and a 52 week high of $89.57. The company has a quick ratio of 0.78, a current ratio of 0.92 and a debt-to-equity ratio of 0.97. The firm's 50-day simple moving average is $83.17 and its 200 day simple moving average is $78.94. The firm has a market capitalization of $22.28 billion, a PE ratio of 70.02, a P/E/G ratio of 0.71 and a beta of 0.65.

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

Omnicom Group Dividend Announcement

The business also recently announced 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 of this dividend is Friday, September 18th. This represents a $3.20 dividend on an annualized basis and a yield of 3.9%. Omnicom Group's dividend payout ratio is presently 275.86%.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on OMC. Citigroup lowered their price target on shares of Omnicom Group from $105.00 to $100.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Zacks Research downgraded shares of Omnicom Group from a "hold" rating to a "strong sell" rating in a report on Thursday, July 30th. Weiss Ratings upgraded shares of Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 30th. Rothschild & Co Redburn assumed coverage on shares of Omnicom Group in a report on Thursday, May 28th. They issued a "neutral" rating and a $89.00 target price for the company. Finally, Wells Fargo & Company lifted their price target on shares of Omnicom Group from $91.00 to $93.00 and gave the company an "overweight" rating in a research report on Thursday, July 30th. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $99.00.

Insider Buying and Selling

In other Omnicom Group news, Director Linda Rice sold 1,385 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $88.73, for a total transaction of $122,891.05. Following the sale, the director owned 11,719 shares in the company, valued at approximately $1,039,826.87. This represents a 10.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.20% of the company's stock.

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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