Cwm LLC Grows Stock Holdings in Omnicom Group Inc. $OMC

Key Points

• Cwm LLC raised its position in Omnicom Group by 118.5% in Q4 to 146,704 shares, worth about $11.85 million (≈0.08% of the company).
• Omnicom's board authorized a $5.0 billion share repurchase (up to ~38.1% of shares) and the company recently paid a $0.80 quarterly dividend, implying roughly a 4.1% yield.
• Omnicom missed Q4 expectations with EPS of $2.59 vs. $2.94 expected and revenue of $5.53B vs. $7.58B expected; analysts' consensus is a "Hold" with a $95.86 price target.

Cwm LLC raised its position in Omnicom Group Inc. (NYSE:OMC - Free Report) by 118.5% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 146,704 shares of the business services provider's stock after acquiring an additional 79,577 shares during the quarter. Cwm LLC owned approximately 0.08% of Omnicom Group worth $11,846,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of OMC. State Street Corp grew its position in shares of Omnicom Group by 15.8% in 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 buying an additional 2,298,652 shares during the last quarter. JPMorgan Chase & Co. grew its position in shares of Omnicom Group by 30.5% in the 3rd quarter. JPMorgan Chase & Co. now owns 8,107,021 shares of the business services provider's stock worth $660,969,000 after buying an additional 1,893,316 shares during the last quarter. Massachusetts Financial Services Co. MA grew its position in shares of Omnicom Group by 5.8% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 7,870,437 shares of the business services provider's stock worth $635,538,000 after buying an additional 433,461 shares during the last quarter. Bank of New York Mellon Corp grew its position in shares of Omnicom Group by 73.6% in the 3rd quarter. Bank of New York Mellon Corp now owns 6,652,469 shares of the business services provider's stock worth $542,376,000 after buying an additional 2,820,553 shares during the last quarter. Finally, First Eagle Investment Management LLC bought a new stake in shares of Omnicom Group in the 3rd quarter worth approximately $515,145,000. Hedge funds and other institutional investors own 91.97% of the company's stock.

Omnicom Group Stock Down 0.2%

NYSE:OMC opened at $78.62 on Friday. The firm's 50-day moving average price is $77.27 and its 200-day moving average price is $76.87. The company has a market capitalization of $22.40 billion, a PE ratio of 160.44, a P/E/G ratio of 0.65 and a beta of 0.73. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.93 and a quick ratio of 0.81. Omnicom Group Inc. has a 1-year low of $66.33 and a 1-year high of $87.17.

Omnicom Group (NYSE:OMC - Get Free Report) last released its earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share for the quarter, missing analysts' consensus estimates of $2.94 by ($0.35). The business had revenue of $5.53 billion during the quarter, compared to analysts' expectations of $7.58 billion. Omnicom Group had a positive return on equity of 25.65% and a negative net margin of 0.32%.The firm's quarterly revenue was up 27.9% compared to the same quarter last year. During the same period in the prior year, the company earned $2.41 earnings per share. On average, equities analysts predict that Omnicom Group Inc. will post 8.25 EPS for the current fiscal year.

Omnicom Group Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, April 9th. Stockholders of record on Wednesday, March 11th were given a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date of this dividend was Wednesday, March 11th. Omnicom Group's payout ratio is currently 653.06%.

Omnicom Group declared that its board has initiated a stock repurchase program on Wednesday, February 18th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the business services provider to buy up to 38.1% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on OMC shares. Citigroup raised their target price on shares of Omnicom Group from $103.00 to $115.00 and gave the stock a "buy" rating in a research report on Friday, February 20th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a research report on Thursday, January 22nd. UBS Group raised their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Argus raised shares of Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Finally, Barclays increased their target price on Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a research report on Monday, February 23rd. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $95.86.

Omnicom Group Company 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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