Daiwa Securities Group Inc. Acquires 21,603 Shares of Omnicom Group Inc. $OMC

Key Points

• Daiwa Securities Group increased its stake in Omnicom Group by 71% in the fourth quarter, adding 21,603 shares and bringing its total holdings to 52,020 shares valued at about $4.2 million.
• Omnicom also saw major institutional buying from firms including Vanguard, Bank of New York Mellon, Geode Capital, and Goldman Sachs; nearly 92% of the stock is now owned by institutional investors.
• The company reported better-than-expected quarterly results, authorized a $5 billion share buyback, and announced a $0.80 quarterly dividend for a 4.3% annual yield.

Daiwa Securities Group Inc. grew its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 71.0% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 52,020 shares of the business services provider's stock after acquiring an additional 21,603 shares during the quarter. Daiwa Securities Group Inc.'s holdings in Omnicom Group were worth $4,201,000 at the end of the most recent reporting period.

Several other large investors also recently modified their holdings of OMC. Vanguard Group Inc. increased its holdings in shares of Omnicom Group by 64.2% in the fourth quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider's stock worth $3,143,930,000 after acquiring an additional 15,220,444 shares in the last quarter. First Eagle Investment Management LLC bought a new stake in shares of Omnicom Group in the third quarter worth about $515,145,000. Bank of New York Mellon Corp increased its holdings in shares of Omnicom Group by 69.6% in the fourth quarter. Bank of New York Mellon Corp now owns 11,283,863 shares of the business services provider's stock worth $911,172,000 after acquiring an additional 4,631,394 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Omnicom Group by 57.1% in the fourth quarter. Geode Capital Management LLC now owns 8,578,075 shares of the business services provider's stock worth $690,327,000 after acquiring an additional 3,117,188 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its holdings in shares of Omnicom Group by 89.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 6,106,022 shares of the business services provider's stock worth $493,061,000 after acquiring an additional 2,883,520 shares in the last quarter. 91.97% of the stock is currently owned by institutional investors.

Omnicom Group Stock Performance

Shares of NYSE OMC opened at $75.12 on Tuesday. The stock has a 50 day moving average price of $75.45 and a 200 day moving average price of $76.60. Omnicom Group Inc. has a 52 week low of $66.33 and a 52 week 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. The stock has a market capitalization of $21.41 billion, a PE ratio of 192.62, a price-to-earnings-growth ratio of 0.45 and a beta of 0.64.

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

Omnicom Group declared that its Board of Directors has approved a stock buyback program on Wednesday, February 18th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the business services provider to repurchase up to 38.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its stock is undervalued.

Omnicom Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Wednesday, June 10th will be given a dividend of $0.80 per share. 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 is 820.51%.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. UBS Group increased their price objective on Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a report on Friday, March 20th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Omnicom Group in a report on Friday, May 22nd. Barclays increased their price objective on Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a report on Monday, February 23rd. Citigroup decreased their price objective on Omnicom Group from $115.00 to $105.00 and set a "buy" rating for the company in a report on Thursday, April 30th. Finally, Morgan Stanley increased their price objective on Omnicom Group from $82.00 to $83.00 and gave the stock an "equal weight" rating in a report on Friday, May 1st. Five investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target 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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