CIBC Asset Management Inc Buys 47,887 Shares of Omnicom Group Inc. $OMC

Key Points

• CIBC Asset Management increased its Omnicom Group stake by 146.6% in the fourth quarter, buying 47,887 additional shares and bringing its total holdings to 80,559 shares valued at about $6.5 million.
• Omnicom reported better-than-expected quarterly results, with EPS of $1.90 versus estimates of $1.84 and revenue of $6.24 billion versus $5.85 billion expected. Revenue also jumped 69.2% from a year earlier.
• The company authorized a $5 billion share repurchase program and announced a quarterly dividend of $0.80 per share, implying an annualized yield of 4.3%.

CIBC Asset Management Inc boosted its stake in Omnicom Group Inc. (NYSE:OMC - Free Report) by 146.6% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 80,559 shares of the business services provider's stock after purchasing an additional 47,887 shares during the period. CIBC Asset Management Inc's holdings in Omnicom Group were worth $6,505,000 at the end of the most recent quarter.

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

Omnicom Group Stock Performance

Shares of NYSE OMC opened at $75.28 on Friday. 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 company has a market cap of $21.46 billion, a P/E ratio of 193.03, a P/E/G ratio of 0.45 and a beta of 0.63. The firm's fifty day moving average is $75.45 and its two-hundred day moving average is $76.57. Omnicom Group Inc. has a 52-week low of $66.33 and a 52-week high of $87.17.

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

Omnicom Group announced that its board has authorized a share repurchase program on Wednesday, February 18th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the business services provider to repurchase up to 38.1% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its stock is undervalued.

Omnicom Group Dividend Announcement

The firm also recently announced 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. The ex-dividend date is Wednesday, June 10th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.3%. Omnicom Group's payout ratio is 820.51%.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Argus upgraded shares of Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Rothschild & Co Redburn initiated coverage on shares of Omnicom Group in a research note on Thursday, May 28th. They set a "neutral" rating and a $89.00 target price on the stock. Citigroup lowered their target price on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research note on Thursday, April 30th. Morgan Stanley lifted their target price on shares of Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a research note on Friday, May 1st. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Omnicom Group in a research note on Friday, May 22nd. Five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $99.00.

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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