Canada Pension Plan Investment Board Takes $6.80 Million Position in Omnicom Group Inc. $OMC

Key Points

• Canada Pension Plan Investment Board acquired 93,400 Omnicom Group shares worth approximately $6.8 million in the second quarter. Institutional investors collectively own 91.97% of OMC.
• Analyst sentiment is mixed, with four Buy, five Hold, and two Sell ratings; the consensus rating is Hold with a $99 price target. OMC recently traded at $88.32, near its 52-week high of $89.57.
• Omnicom reported quarterly revenue of $6.56 billion, above estimates, but earnings of $2.65 per share slightly missed expectations. The company declared a quarterly dividend of $0.80 per share, representing a 3.6% annualized yield.

Canada Pension Plan Investment Board bought a new position in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 93,400 shares of the business services provider's stock, valued at approximately $6,802,000.

Other large investors also recently modified their holdings of the company. EverSource Wealth Advisors LLC lifted its holdings in Omnicom Group by 82.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,917 shares of the business services provider's stock worth $138,000 after buying an additional 869 shares during the period. Gamco Investors INC. ET AL bought a new position in shares of Omnicom Group during the second quarter valued at approximately $241,000. Gabelli Funds LLC purchased a new stake in Omnicom Group in the second quarter worth $1,061,000. Daiwa Securities Group Inc. boosted its holdings in Omnicom Group by 5.3% in 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 acquiring an additional 1,482 shares in the last quarter. Finally, Sei Investments Co. boosted its holdings in Omnicom Group by 14.1% in the second quarter. Sei Investments Co. now owns 361,266 shares of the business services provider's stock valued at $25,990,000 after acquiring an additional 44,746 shares in the last quarter. 91.97% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts have commented on OMC shares. Rothschild & Co Redburn started coverage on shares of Omnicom Group in a report on Thursday, May 28th. They issued a "neutral" rating and a $89.00 price objective for the company. Wells Fargo & Company boosted their price target on shares of Omnicom Group from $91.00 to $93.00 and gave the company an "overweight" rating in a research report on Thursday, July 30th. The Goldman Sachs Group assumed coverage on Omnicom Group in a research report on Wednesday, June 3rd. They set a "buy" rating and a $146.00 price objective on the stock. Citigroup reduced their target price on Omnicom Group from $105.00 to $100.00 and set a "buy" rating on the stock in a 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 analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $99.00.

Omnicom Group Stock Performance

Shares of OMC opened at $88.32 on Friday. The company has a quick ratio of 0.78, a current ratio of 0.92 and a debt-to-equity ratio of 0.97. The stock has a market cap of $24.23 billion, a P/E ratio of 76.14, a P/E/G ratio of 0.59 and a beta of 0.64. The business's 50 day moving average price is $81.71 and its 200-day moving average price is $78.19. Omnicom Group Inc. has a 52 week low of $66.33 and a 52 week high of $89.57.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its quarterly earnings data 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 company 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 firm's quarterly revenue was up 63.4% on a year-over-year basis. During the same period last year, the business earned $2.05 EPS. Equities research analysts anticipate that Omnicom Group Inc. will post 10.35 earnings per share for the current fiscal year.

Omnicom Group Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Friday, September 18th will be issued a dividend of $0.80 per share. The ex-dividend date is Friday, September 18th. This represents a $3.20 annualized dividend and a dividend yield of 3.6%. Omnicom Group's dividend payout ratio (DPR) is presently 275.86%.

Insider Activity

In other news, Director Linda Johnson Rice sold 1,385 shares of Omnicom Group stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $88.73, for a total value of $122,891.05. Following the completion of the transaction, the director owned 11,719 shares of the company's stock, valued at $1,039,826.87. The trade was a 10.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 1.20% of the stock is currently owned by corporate insiders.

About Omnicom Group

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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