Cibc World Market Inc. Makes New Investment in Omnicom Group Inc. $OMC

Key Points

• CIBC World Market acquired 26,524 shares of Omnicom Group in the second quarter, valued at approximately $1.93 million. Institutional investors collectively own 91.97% of the company.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $99.00. Recent targets range from $89 to $146, while Zacks downgraded the stock to “strong sell.”
• Omnicom reported quarterly revenue of $6.56 billion, up 63.4% year over year, though EPS of $2.65 narrowly missed estimates. The company declared a quarterly dividend of $0.80 per share, representing a 3.6% yield.

Cibc World Market Inc. purchased a new stake in Omnicom Group Inc. (NYSE:OMC - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 26,524 shares of the business services provider's stock, valued at approximately $1,932,000.

Several other hedge funds also recently bought and sold shares of the company. Resona Asset Management Co. Ltd. boosted its holdings in shares of Omnicom Group by 55.4% during the 4th quarter. Resona Asset Management Co. Ltd. now owns 98,842 shares of the business services provider's stock valued at $7,976,000 after buying an additional 35,247 shares in the last quarter. Generali Asset Management SPA SGR increased its stake in shares of Omnicom Group by 346.0% in the 4th quarter. Generali Asset Management SPA SGR now owns 20,580 shares of the business services provider's stock worth $1,662,000 after acquiring an additional 15,966 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in Omnicom Group by 70.0% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 674,065 shares of the business services provider's stock valued at $54,815,000 after acquiring an additional 277,665 shares during the period. Orca Investment Management LLC purchased a new position in Omnicom Group during the 2nd quarter valued at about $2,023,000. Finally, New York State Teachers Retirement System boosted its stake in Omnicom Group by 70.2% during the fourth quarter. New York State Teachers Retirement System now owns 251,174 shares of the business services provider's stock worth $20,282,000 after acquiring an additional 103,615 shares in the last quarter. Hedge funds and other institutional investors own 91.97% of the company's stock.

Analyst Upgrades and Downgrades

OMC has been the topic of a number of analyst reports. Zacks Research cut Omnicom Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 30th. Citigroup cut their target price on Omnicom Group from $105.00 to $100.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. The Goldman Sachs Group started coverage on shares of Omnicom Group in a research report on Wednesday, June 3rd. They set a "buy" rating and a $146.00 price objective on the stock. Wells Fargo & Company raised their price objective on shares of Omnicom Group from $91.00 to $93.00 and gave the company an "overweight" rating in a research note on Thursday, July 30th. Finally, Rothschild & Co Redburn began coverage on shares of Omnicom Group in a report on Thursday, May 28th. They issued a "neutral" rating and a $89.00 target price for the company. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $99.00.

Insider Activity at Omnicom Group

In other Omnicom Group news, Director Linda Johnson Rice sold 1,385 shares of the company's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $88.73, for a total value of $122,891.05. Following the transaction, the director directly owned 11,719 shares in the company, valued at $1,039,826.87. This represents a 10.57% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 1.20% of the company's stock.

Omnicom Group Stock Down 0.2%

NYSE OMC opened at $87.98 on Thursday. The company has a current ratio of 0.92, a quick ratio of 0.78 and a debt-to-equity ratio of 0.97. The stock has a market cap of $24.14 billion, a PE ratio of 75.85, a P/E/G ratio of 0.59 and a beta of 0.64. The stock's 50 day moving average is $81.04 and its 200 day moving average is $77.99. Omnicom Group Inc. has a 12 month low of $66.33 and a 12 month high of $89.57.

Omnicom Group (NYSE:OMC - Get Free Report) last issued 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). Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. The firm had revenue of $6.56 billion for the quarter, compared to analysts' expectations of $6.44 billion. During the same quarter in the previous year, the business earned $2.05 EPS. The company's revenue for the quarter was up 63.4% on a year-over-year basis. Research analysts predict that Omnicom Group Inc. will post 10.35 EPS for the current fiscal year.

Omnicom Group Announces Dividend

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

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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