BNP Paribas Financial Markets Buys 456,644 Shares of Omnicom Group Inc. $OMC

Key Points

• BNP Paribas Financial Markets boosted its Omnicom Group stake by 63.4% in the fourth quarter, buying 456,644 additional shares and bringing its holdings to 1,177,398 shares valued at about $95.1 million.
• Omnicom reported better-than-expected quarterly results, with earnings per share of $1.90 versus estimates of $1.84 and revenue of $6.24 billion, helped by strong year-over-year growth.
• The company also announced a $5 billion stock repurchase program and a quarterly dividend of $0.80 per share, implying a 4.2% annualized yield.

BNP Paribas Financial Markets raised its stake in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 63.4% in the 4th quarter, according to its most recent disclosure with the SEC. The firm owned 1,177,398 shares of the business services provider's stock after purchasing an additional 456,644 shares during the period. BNP Paribas Financial Markets owned 0.61% of Omnicom Group worth $95,075,000 as of its most recent SEC filing.

Several other hedge funds have also bought and sold shares of the stock. EverSource Wealth Advisors LLC boosted its stake in Omnicom Group by 82.9% during the second quarter. EverSource Wealth Advisors LLC now owns 1,917 shares of the business services provider's stock valued at $138,000 after buying an additional 869 shares during the last quarter. Gamco Investors INC. ET AL bought a new position in Omnicom Group during the second quarter valued at approximately $241,000. Gabelli Funds LLC bought a new position in Omnicom Group during the second quarter valued at approximately $1,061,000. Daiwa Securities Group Inc. boosted its stake in Omnicom Group by 5.3% during the second quarter. Daiwa Securities Group Inc. now owns 29,373 shares of the business services provider's stock valued at $2,113,000 after buying an additional 1,482 shares during the last quarter. Finally, Sei Investments Co. boosted its stake in Omnicom Group by 14.1% during the second quarter. Sei Investments Co. now owns 361,266 shares of the business services provider's stock valued at $25,990,000 after buying an additional 44,746 shares during the last quarter. Institutional investors own 91.97% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Barclays increased their price target on Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research note on Monday, February 23rd. Citigroup decreased their price objective on Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Argus upgraded Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Weiss Ratings restated a "hold (c-)" rating on shares of Omnicom Group in a research report on Friday, May 22nd. Finally, Morgan Stanley upped their price objective 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. Four analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $93.13.

Omnicom Group Trading Up 4.7%

Shares of NYSE OMC opened at $76.15 on Tuesday. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.77 and a current ratio of 0.91. The business's 50 day moving average price is $75.49 and its 200-day moving average price is $76.54. Omnicom Group Inc. has a fifty-two week low of $66.33 and a fifty-two week high of $87.17. The company has a market cap of $21.70 billion, a price-to-earnings ratio of 195.27, a PEG ratio of 0.44 and a beta of 0.64.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The business services provider reported $1.90 earnings per share for the quarter, topping the consensus estimate of $1.84 by $0.06. Omnicom Group had a return on equity of 24.48% and a net margin of 0.32%.The firm had revenue of $6.24 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same period in the prior year, the business posted $1.70 earnings per share. The company's revenue for the quarter was up 69.2% on a year-over-year basis. On average, sell-side analysts expect that Omnicom Group Inc. will post 10.97 earnings per share for the current year.

Omnicom Group declared that its Board of Directors has initiated a stock repurchase program on Wednesday, February 18th that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the business services provider to buy up to 38.1% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its shares are undervalued.

Omnicom Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Wednesday, June 10th will be issued a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Wednesday, June 10th. Omnicom Group's dividend payout ratio is presently 820.51%.

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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