Bank of America Corp DE Boosts Position in Omnicom Group Inc. $OMC

Key Points

• Bank of America increased its Omnicom stake by 10.4% in the first quarter, adding 206,398 shares to own 2.19 million shares worth approximately $165.2 million. Institutional investors collectively own 91.97% of OMC.
• Analyst sentiment remains mixed, with four Buy, five Hold, and two Sell ratings; the average rating is Hold with a $99 price target, compared with the stock’s $81.76 opening price.
• Omnicom reported quarterly revenue of $6.56 billion, up 63.4% year over year, but narrowly missed earnings expectations. The company also announced a quarterly dividend of $0.80 per share, representing a 3.9% annualized yield.

Bank of America Corp DE raised its holdings in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 10.4% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,193,987 shares of the business services provider's stock after buying an additional 206,398 shares during the period. Bank of America Corp DE owned about 0.77% of Omnicom Group worth $165,229,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of OMC. Vanguard Group Inc. boosted its position in Omnicom Group by 64.2% during the 4th quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider's stock worth $3,143,930,000 after purchasing an additional 15,220,444 shares during the period. State Street Corp raised its holdings in shares of Omnicom Group by 40.4% during the 4th quarter. State Street Corp now owns 23,676,768 shares of the business services provider's stock valued at $1,933,891,000 after buying an additional 6,813,441 shares during the period. Bank of New York Mellon Corp lifted its position in Omnicom Group by 7.2% during the 1st quarter. Bank of New York Mellon Corp now owns 12,098,191 shares of the business services provider's stock worth $911,115,000 after acquiring an additional 814,328 shares in the last quarter. Geode Capital Management LLC lifted its position in Omnicom Group by 57.1% during the 4th quarter. Geode Capital Management LLC now owns 8,578,075 shares of the business services provider's stock worth $690,327,000 after acquiring an additional 3,117,188 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA lifted its position in Omnicom Group by 5.8% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 7,870,437 shares of the business services provider's stock worth $635,538,000 after acquiring an additional 433,461 shares in the last quarter. 91.97% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on OMC. The Goldman Sachs Group initiated coverage on shares of Omnicom Group in a research report on Wednesday, June 3rd. They issued a "buy" rating and a $146.00 price objective for the company. Morgan Stanley boosted 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 report on Friday, May 1st. Rothschild & Co Redburn began coverage on shares of Omnicom Group in a research note on Thursday, May 28th. They issued a "neutral" rating and a $89.00 target price for the company. Weiss Ratings raised shares of Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 30th. Finally, Citigroup dropped 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. Four investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $99.00.

Omnicom Group Stock Down 0.1%

OMC stock opened at $81.76 on Thursday. The company has a current ratio of 0.92, a quick ratio of 0.78 and a debt-to-equity ratio of 0.97. The firm has a 50 day simple moving average of $77.66 and a 200-day simple moving average of $76.91. The company has a market capitalization of $22.43 billion, a P/E ratio of 70.48, a PEG ratio of 0.54 and a beta of 0.64. Omnicom Group Inc. has a twelve month low of $66.33 and a twelve month high of $87.41.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The business services provider reported $2.65 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.67 by ($0.02). Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. The company had revenue of $6.56 billion during the quarter, compared to analyst estimates of $6.44 billion. During the same period in the prior year, the company earned $2.05 earnings per share. The company's revenue was up 63.4% on a year-over-year basis. On average, equities research analysts predict that Omnicom Group Inc. will post 10.35 earnings per share 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. Stockholders of record on Friday, September 18th will be paid a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date is Friday, September 18th. Omnicom Group's dividend payout ratio is 275.86%.

Omnicom Group 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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