Cibc World Market Inc. Trims Holdings in Omnicom Group Inc. $OMC

Key Points

• Cibc World Market Inc. reduced its Omnicom Group stake by 29.9% in the fourth quarter, selling 34,155 shares and ending with 79,970 shares valued at about $6.46 million.
• Omnicom recently posted better-than-expected quarterly results, reporting EPS of $1.90 on revenue of $6.24 billion, both ahead of analyst estimates.
• The company also announced a $5 billion share buyback and a quarterly dividend of $0.80 per share, implying a 4.3% annualized yield.

Cibc World Market Inc. trimmed its position in Omnicom Group Inc. (NYSE:OMC - Free Report) by 29.9% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 79,970 shares of the business services provider's stock after selling 34,155 shares during the period. Cibc World Market Inc.'s holdings in Omnicom Group were worth $6,458,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in OMC. 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 valued at $138,000 after purchasing an additional 869 shares in the last quarter. Gamco Investors INC. ET AL purchased a new position in Omnicom Group in the 2nd quarter valued at about $241,000. Gabelli Funds LLC purchased a new position in Omnicom Group in the 2nd quarter valued at about $1,061,000. Daiwa Securities Group Inc. increased 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 valued at $2,113,000 after acquiring an additional 1,482 shares during the last quarter. Finally, Sei Investments Co. increased 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 valued at $25,990,000 after acquiring an additional 44,746 shares during the last quarter. 91.97% of the stock is currently owned by hedge funds and other institutional investors.

Omnicom Group Stock Down 0.0%

OMC opened at $75.28 on Monday. The firm has a 50 day moving average price of $75.45 and a 200 day moving average price of $76.59. The company has a market cap of $21.46 billion, a PE ratio of 193.03, a price-to-earnings-growth ratio of 0.45 and a beta of 0.64. Omnicom Group Inc. has a 1 year low of $66.33 and a 1 year high of $87.17. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.77 and a current ratio of 0.91.

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

Omnicom Group announced that its Board of Directors has initiated a stock buyback plan on Wednesday, February 18th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the business services provider to reacquire up to 38.1% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Omnicom Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Wednesday, June 10th will be given a $0.80 dividend. The ex-dividend date of this dividend is Wednesday, June 10th. This represents a $3.20 annualized dividend and a yield of 4.3%. Omnicom Group's dividend payout ratio (DPR) is 820.51%.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on OMC. Rothschild & Co Redburn began coverage on shares of Omnicom Group in a research note on Thursday, May 28th. They set a "neutral" rating and a $89.00 price objective for the company. Morgan Stanley upped their price objective 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. Barclays upped their price objective on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research note on Monday, February 23rd. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Omnicom Group in a research note on Friday, May 22nd. Finally, Argus raised shares of Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $99.00.

Omnicom Group 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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