BlackRock Inc. Takes $2.08 Billion Position in Omnicom Group Inc. $OMC

Key Points

• BlackRock acquired 28.6 million Omnicom shares valued at approximately $2.08 billion, giving it a 10.42% stake in the company. Institutional investors collectively own 91.97% of Omnicom’s outstanding stock.
• Omnicom reported quarterly revenue of $6.56 billion, up 63.4% year over year and above estimates, but earnings per share of $2.65 narrowly missed forecasts. Shares opened at $87.38, near the company’s 52-week high.
• The company declared a quarterly dividend of $0.80 per share, or $3.20 annually, representing a 3.7% yield. Analysts’ consensus rating is Hold, with an average price target of $99.

BlackRock Inc. acquired a new position in Omnicom Group Inc. (NYSE:OMC - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 28,593,656 shares of the business services provider's stock, valued at approximately $2,082,476,000. BlackRock Inc. owned about 10.42% of Omnicom Group as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently made changes to their positions in the company. Wakefield Asset Management LLLP boosted its position in shares of Omnicom Group by 2.6% during the fourth quarter. Wakefield Asset Management LLLP now owns 5,910 shares of the business services provider's stock worth $477,000 after buying an additional 149 shares during the period. Caldwell Trust Co boosted its holdings in Omnicom Group by 29.0% during the 1st 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. SJS Investment Consulting Inc. grew its holdings in shares of Omnicom Group by 39.1% in the first quarter. SJS Investment Consulting Inc. now owns 544 shares of the business services provider's stock valued at $41,000 after purchasing an additional 153 shares in the last quarter. Blake Schutter Theil Wealth Advisors LLC grew its stake in shares of Omnicom Group by 3.5% in the fourth quarter. Blake Schutter Theil Wealth Advisors LLC now owns 4,897 shares of the business services provider's stock worth $395,000 after acquiring an additional 167 shares in the last quarter. Finally, Binnacle Investments Inc increased its position in shares of Omnicom Group by 17.7% during the second quarter. Binnacle Investments Inc now owns 1,124 shares of the business services provider's stock worth $81,000 after acquiring an additional 169 shares during the period. Hedge funds and other institutional investors own 91.97% of the company's stock.

Omnicom Group Trading Up 1.2%

OMC opened at $87.38 on Thursday. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.78 and a current ratio of 0.92. Omnicom Group Inc. has a one year low of $66.33 and a one year high of $88.55. The company has a market cap of $23.97 billion, a P/E ratio of 75.33, a PEG ratio of 0.57 and a beta of 0.64. The business's 50-day simple moving average is $79.89 and its 200-day simple moving average is $77.43.

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 return on equity of 24.73% and a net margin of 1.74%.Omnicom Group's revenue for the quarter was up 63.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.05 EPS. As a group, equities research analysts expect that Omnicom Group Inc. will post 10.35 EPS for the current fiscal year.

Omnicom Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Friday, September 18th will be given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 3.7%. The ex-dividend date is Friday, September 18th. Omnicom Group's payout ratio is currently 275.86%.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Rothschild & Co Redburn began coverage on Omnicom Group in a report on Thursday, May 28th. They issued a "neutral" rating and a $89.00 target price for the company. Morgan Stanley increased their price target on Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a research report on Friday, May 1st. The Goldman Sachs Group initiated coverage on Omnicom Group in a research note on Wednesday, June 3rd. They issued a "buy" rating and a $146.00 price objective for the company. Zacks Research downgraded Omnicom Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 30th. Finally, Citigroup cut their target price 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 research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $99.00.

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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