California State Teachers Retirement System Acquires 33,271,882 Shares of Omnicom Group Inc. $OMC

Key Points

• California State Teachers Retirement System dramatically increased its Omnicom stake by acquiring 33.27 million additional shares, bringing its holdings to 33.8 million shares worth approximately $2.46 billion, or 12.32% of the company.
• Omnicom reported quarterly revenue of $6.56 billion, up 63.4% year over year, but EPS of $2.65 narrowly missed estimates. The company declared a quarterly dividend of $0.80, representing a 4.0% annualized yield.
• Analyst sentiment remains mixed, with the stock carrying a consensus “Hold” rating and an average price target of $99, compared with a recent share price of $79.38.

California State Teachers Retirement System raised its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 6,250.5% during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 33,804,190 shares of the business services provider's stock after acquiring an additional 33,271,882 shares during the period. California State Teachers Retirement System owned approximately 12.32% of Omnicom Group worth $2,461,959,000 at the end of the most recent reporting period.

Other large investors have also recently modified their holdings of the company. Pure Financial Advisors LLC grew its holdings in shares of Omnicom Group by 3.1% during the second quarter. Pure Financial Advisors LLC now owns 4,464 shares of the business services provider's stock worth $325,000 after purchasing an additional 135 shares in the last quarter. Tranquilli Financial Advisor LLC raised its stake in Omnicom Group by 2.0% in the second quarter. Tranquilli Financial Advisor LLC now owns 7,610 shares of the business services provider's stock valued at $554,000 after purchasing an additional 148 shares in the last quarter. Wakefield Asset Management LLLP raised its stake in Omnicom Group by 2.6% in the fourth quarter. Wakefield Asset Management LLLP now owns 5,910 shares of the business services provider's stock valued at $477,000 after purchasing an additional 149 shares in the last quarter. Caldwell Trust Co raised its stake in Omnicom Group by 29.0% in the first quarter. Caldwell Trust Co now owns 662 shares of the business services provider's stock valued at $50,000 after purchasing an additional 149 shares in the last quarter. Finally, SJS Investment Consulting Inc. lifted its position in Omnicom Group by 39.1% during 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 during the last quarter. Institutional investors own 91.97% of the company's stock.

Omnicom Group Stock Performance

Shares of NYSE OMC opened at $79.38 on Friday. The stock's 50-day moving average is $83.23 and its 200 day moving average is $78.90. The stock has a market cap of $21.78 billion, a price-to-earnings ratio of 68.43, a P/E/G ratio of 0.67 and a beta of 0.65. Omnicom Group Inc. has a 1-year low of $66.33 and a 1-year high of $89.57. The company has a current ratio of 0.92, a quick ratio of 0.78 and a debt-to-equity ratio of 0.97.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its 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 return on equity of 24.73% and a net margin of 1.74%.The firm had revenue of $6.56 billion during the quarter, compared to analysts' expectations of $6.44 billion. During the same period in the prior year, the company earned $2.05 EPS. The firm's quarterly revenue was up 63.4% compared to the same quarter last year. On average, sell-side analysts anticipate that Omnicom Group Inc. will post 10.35 EPS for the current fiscal year.

Omnicom Group Dividend Announcement

The firm also recently disclosed 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. The ex-dividend date of this dividend is Friday, September 18th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.0%. Omnicom Group's dividend payout ratio is 275.86%.

Analysts Set New Price Targets

OMC has been the subject of a number of research reports. Rothschild & Co Redburn initiated coverage on shares of Omnicom Group in a research note on Thursday, May 28th. They issued a "neutral" rating and a $89.00 price target for the company. Zacks Research cut shares of Omnicom Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 30th. Citigroup dropped their price objective on shares of Omnicom Group from $105.00 to $100.00 and set a "buy" rating for the company in a report on Thursday, July 30th. The Goldman Sachs Group began coverage on shares of Omnicom Group in a research report on Wednesday, June 3rd. They issued a "buy" rating and a $146.00 target price for the company. Finally, Weiss Ratings raised Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, July 30th. Four research 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. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $99.00.

Insider Activity

In related news, Director Linda Rice sold 1,385 shares of the stock in a transaction on Monday, August 24th. The shares were sold at an average price of $88.73, for a total transaction of $122,891.05. Following the transaction, the director owned 11,719 shares of the company's stock, valued at approximately $1,039,826.87. This trade represents a 10.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 1.20% of the company's stock.

Omnicom Group Profile

Omnicom Group Inc NYSE: OMC is a global marketing and communications holding company. Through a network of agencies and specialized businesses, it provides advertising, branding, media planning and buying, public relations, customer relationship management, digital marketing, experiential marketing and healthcare communications services.

Omnicom's agency brands have included BBDO Worldwide, DDB Worldwide, TBWA\Worldwide, Omnicom Media Group, FleishmanHillard and Ketchum. These businesses serve clients across industries, including consumer products, healthcare, technology, financial services, automotive and telecommunications, helping organizations develop brand strategies, create campaigns and engage audiences through traditional and digital channels.

Omnicom was formed in 1986 through the merger of advertising companies BBDO, Doyle Dane Bernbach and Needham Harper Worldwide.

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