Berger Financial Group Inc Makes New $5.56 Million Investment in Omnicom Group Inc. $OMC

Key Points

• Berger Financial Group bought a new position in Omnicom, acquiring 68,906 shares worth about $5.56 million in Q4 per its latest 13F filing.
• Omnicom's board approved a $5.0 billion share buyback (up to 38.1% of shares) and paid a $0.80 quarterly dividend (4.1% yield), though the dividend payout ratio is unusually high, suggesting potential sustainability concerns.
• The company missed Q4 estimates (EPS $2.59 vs. $2.94; revenue $5.53B vs. $7.58B), and analyst sentiment is mixed—four Buys, four Holds, one Sell—with a MarketBeat consensus price target of $95.86.

Berger Financial Group Inc bought a new position in Omnicom Group Inc. (NYSE:OMC - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund bought 68,906 shares of the business services provider's stock, valued at approximately $5,564,000.

A number of other hedge funds have also bought and sold shares of the business. Lecap Asset Management Ltd. purchased a new position in Omnicom Group in the 4th quarter worth about $206,000. Asset Management One Co. Ltd. increased its position in shares of Omnicom Group by 40.4% during the 4th quarter. Asset Management One Co. Ltd. now owns 112,771 shares of the business services provider's stock valued at $9,075,000 after purchasing an additional 32,432 shares during the last quarter. Patriot Financial Group Insurance Agency LLC increased its position in shares of Omnicom Group by 89.8% during the 4th quarter. Patriot Financial Group Insurance Agency LLC now owns 34,860 shares of the business services provider's stock valued at $2,815,000 after purchasing an additional 16,497 shares during the last quarter. Trivium Point Advisory LLC purchased a new stake in shares of Omnicom Group during the 4th quarter valued at about $498,000. Finally, Merit Financial Group LLC increased its position in shares of Omnicom Group by 176.6% during the 4th quarter. Merit Financial Group LLC now owns 28,844 shares of the business services provider's stock valued at $2,329,000 after purchasing an additional 18,417 shares during the last quarter. Hedge funds and other institutional investors own 91.97% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently commented on OMC. UBS Group upped their price target on shares of Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research report on Friday, March 20th. Citigroup upped their price target on shares of Omnicom Group from $103.00 to $115.00 and gave the company a "buy" rating in a research report on Friday, February 20th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Barclays upped their price target on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research report on Monday, February 23rd. Finally, Argus raised shares of Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $95.86.

Omnicom Group Trading Down 0.2%

Omnicom Group stock opened at $78.62 on Friday. The firm has a 50 day moving average of $77.27 and a 200 day moving average of $76.87. The firm has a market capitalization of $22.40 billion, a price-to-earnings ratio of 160.44, a P/E/G ratio of 0.65 and a beta of 0.73. Omnicom Group Inc. has a 12-month low of $66.33 and a 12-month high of $87.17. The company has a current ratio of 0.93, a quick ratio of 0.81 and a debt-to-equity ratio of 0.60.

Omnicom Group (NYSE:OMC - Get Free Report) last released its earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.94 by ($0.35). The firm had revenue of $5.53 billion during the quarter, compared to analysts' expectations of $7.58 billion. Omnicom Group had a positive return on equity of 25.65% and a negative net margin of 0.32%.The company's revenue was up 27.9% compared to the same quarter last year. During the same period in the prior year, the company posted $2.41 earnings per share. As a group, research analysts predict that Omnicom Group Inc. will post 8.25 earnings per share for the current year.

Omnicom Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Wednesday, March 11th were issued a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend was Wednesday, March 11th. Omnicom Group's dividend payout ratio is currently 653.06%.

Omnicom Group announced that its board has initiated a stock buyback program on Wednesday, February 18th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the business services provider to purchase up to 38.1% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's management believes its stock is undervalued.

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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