Bank of New York Mellon Corp Acquires Shares of 12,551,916 Omnicom Group Inc. $OMC

Key Points

• Bank of New York Mellon acquired 12.55 million Omnicom Group shares during the second quarter, worth approximately $914.2 million and representing about 4.58% of the company.
• Institutional investors own 91.97% of Omnicom’s stock, while analysts maintain a consensus “Hold” rating with an average price target of $99.00.
• Omnicom reported quarterly revenue of $6.56 billion, up 63.4% year over year, though earnings per share of $2.65 narrowly missed estimates. The company also declared a quarterly dividend of $0.80 per share, yielding about 3.7% annually.

Bank of New York Mellon Corp bought a new position in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm bought 12,551,916 shares of the business services provider's stock, valued at approximately $914,156,000. Bank of New York Mellon Corp owned about 4.58% of Omnicom Group as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in 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 worth $25,000 after purchasing an additional 296 shares during the period. Bayforest Capital Ltd acquired a new stake in shares of Omnicom Group during the fourth quarter worth $26,000. Elyxium Wealth LLC acquired a new stake in shares of Omnicom Group during the fourth quarter worth $26,000. Legacy Wealth Managment LLC ID lifted its position in shares of Omnicom Group by 111.4% in the 4th quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider's stock worth $27,000 after buying an additional 176 shares during the last quarter. Finally, EFG International AG bought a new position in shares of Omnicom Group in the 4th quarter worth about $28,000. 91.97% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

OMC has been the subject of a number of recent research reports. The Goldman Sachs Group initiated coverage on shares of Omnicom Group in a research report on Wednesday, June 3rd. They set a "buy" rating and a $146.00 price objective for the company. Citigroup decreased their target price on Omnicom Group from $105.00 to $100.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Rothschild & Co Redburn initiated coverage on Omnicom Group in a report on Thursday, May 28th. They set a "neutral" rating and a $89.00 target price for the company. Weiss Ratings upgraded Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 30th. Finally, Zacks Research downgraded Omnicom Group from a "hold" rating to a "strong sell" rating in a report on Thursday, July 30th. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $99.00.

Omnicom Group Price Performance

NYSE OMC opened at $87.02 on Friday. Omnicom Group Inc. has a 52 week low of $66.33 and a 52 week high of $88.55. 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 stock has a market cap of $23.87 billion, a price-to-earnings ratio of 75.02, a price-to-earnings-growth ratio of 0.58 and a beta of 0.64. The company has a 50-day moving average price of $80.11 and a two-hundred day moving average price of $77.50.

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

Omnicom Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 18th will be paid a dividend of $0.80 per share. The ex-dividend date of this dividend is Friday, September 18th. This represents a $3.20 annualized dividend and a yield of 3.7%. Omnicom Group's payout ratio is presently 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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