Commonwealth of Pennsylvania Public School Empls Retrmt SYS Boosts Stock Position in Omnicom Group Inc. $OMC

Key Points

• Institutional investors increased their stakes in Omnicom Group, with the Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosting its holding by 59.5% in the fourth quarter. Vanguard, Geode Capital, State Street, and JPMorgan also raised positions, and institutions now own 91.97% of the stock.
• Omnicom’s recent results beat expectations, as the company reported $1.90 EPS versus $1.84 expected and revenue of $6.24 billion versus $5.85 billion expected. Quarterly revenue rose 69.2% year over year.
• The company continues returning capital to shareholders through a $0.80 quarterly dividend and a newly authorized $5 billion share repurchase program. The dividend implies a 4.3% annual yield, while analysts currently rate the stock a consensus “Hold.”

Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its position in Omnicom Group Inc. (NYSE:OMC - Free Report) by 59.5% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 74,197 shares of the business services provider's stock after buying an additional 27,677 shares during the quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS's holdings in Omnicom Group were worth $5,991,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of OMC. Vanguard Group Inc. raised its holdings in shares of Omnicom Group by 64.2% in the 4th quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider's stock valued at $3,143,930,000 after buying an additional 15,220,444 shares during the period. First Eagle Investment Management LLC acquired a new position in Omnicom Group during the 3rd quarter worth $515,145,000. Geode Capital Management LLC grew its stake in Omnicom Group by 57.1% during the 4th quarter. Geode Capital Management LLC now owns 8,578,075 shares of the business services provider's stock worth $690,327,000 after purchasing an additional 3,117,188 shares in the last quarter. State Street Corp grew its stake in Omnicom Group by 15.8% during the 3rd quarter. State Street Corp now owns 16,863,327 shares of the business services provider's stock worth $1,384,980,000 after purchasing an additional 2,298,652 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its stake in Omnicom Group by 30.5% during the 3rd quarter. JPMorgan Chase & Co. now owns 8,107,021 shares of the business services provider's stock worth $660,969,000 after purchasing an additional 1,893,316 shares in the last quarter. Hedge funds and other institutional investors own 91.97% of the company's stock.

Analyst Ratings Changes

Several research analysts recently commented on the company. Argus raised Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Barclays boosted their target price on Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a research note on Monday, February 23rd. Rothschild & Co Redburn assumed coverage on Omnicom Group in a research note on Thursday, May 28th. They set a "neutral" rating and a $89.00 target price for the company. Citigroup lowered their target price on Omnicom Group from $115.00 to $105.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Finally, UBS Group boosted their target price on Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research note on Friday, March 20th. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Omnicom Group has an average rating of "Hold" and a consensus price target of $93.13.

Omnicom Group Trading Down 1.1%

OMC opened at $75.16 on Wednesday. The business has a fifty day moving average price of $75.49 and a 200 day moving average price of $76.54. The stock has a market capitalization of $21.42 billion, a price-to-earnings ratio of 192.72, a PEG ratio of 0.46 and a beta of 0.63. Omnicom Group Inc. has a 12 month low of $66.33 and a 12 month high of $87.17. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.91 and a quick ratio of 0.77.

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

Omnicom Group Dividend Announcement

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

Omnicom Group announced that its Board of Directors has initiated a share repurchase 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 repurchase up to 38.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

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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