Disciplined Equity Management Inc. Invests $1.34 Million in Omnicom Group Inc. $OMC

Key Points

• Disciplined Equity Management Inc. acquired a new stake of 16,629 shares in Omnicom Group (NYSE:OMC) in Q4, valued at approximately $1.34 million, representing about 0.7% of its portfolio and its 19th-largest holding.
• Omnicom's board authorized a $5.0 billion share buyback and declared a quarterly dividend of $0.80 per share (about a 4.3% yield), even as the company missed quarterly EPS and revenue estimates (EPS $2.59 vs. $2.94 consensus).

Disciplined Equity Management Inc. acquired a new stake in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The fund acquired 16,629 shares of the business services provider's stock, valued at approximately $1,343,000. Omnicom Group accounts for approximately 0.7% of Disciplined Equity Management Inc.'s portfolio, making the stock its 19th biggest position.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Bollard Group LLC raised its stake in Omnicom Group by 6.0% during the 2nd quarter. Bollard Group LLC now owns 2,569 shares of the business services provider's stock worth $185,000 after acquiring an additional 145 shares during the period. Wilmington Savings Fund Society FSB boosted its position in shares of Omnicom Group by 2.0% in the third quarter. Wilmington Savings Fund Society FSB now owns 7,330 shares of the business services provider's stock worth $598,000 after purchasing an additional 145 shares during the period. Leonard Rickey Investment Advisors P.L.L.C. increased its stake in shares of Omnicom Group by 4.1% in the fourth quarter. Leonard Rickey Investment Advisors P.L.L.C. now owns 3,775 shares of the business services provider's stock worth $305,000 after purchasing an additional 147 shares in the last quarter. Deseret Mutual Benefit Administrators increased its stake in shares of Omnicom Group by 7.9% in the third quarter. Deseret Mutual Benefit Administrators now owns 2,031 shares of the business services provider's stock worth $166,000 after purchasing an additional 149 shares in the last quarter. Finally, Impact Partnership Wealth LLC raised its position in shares of Omnicom Group by 3.1% during the 3rd quarter. Impact Partnership Wealth LLC now owns 4,923 shares of the business services provider's stock valued at $401,000 after purchasing an additional 150 shares during the period. 91.97% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms have commented on OMC. Morgan Stanley began coverage on Omnicom Group in a report on Tuesday, December 16th. They set an "equal weight" rating and a $88.00 price target on the stock. Citigroup increased their target price on Omnicom Group from $103.00 to $115.00 and gave the stock a "buy" rating in a research report on Friday, February 20th. Bank of America restated an "underperform" rating and issued a $77.00 price target (down from $87.00) on shares of Omnicom Group in a research note on Monday, January 5th. Argus upgraded shares of Omnicom Group to a "hold" rating in a research report on Thursday. Finally, UBS Group boosted their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a report on Friday, March 20th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Omnicom Group presently has an average rating of "Hold" and a consensus target price of $95.86.

Omnicom Group Trading Down 1.9%

OMC stock opened at $73.85 on Friday. The firm has a fifty day moving average price of $77.16 and a 200 day moving average price of $76.96. Omnicom Group Inc. has a fifty-two week low of $66.33 and a fifty-two week high of $87.17. The firm has a market cap of $22.92 billion, a PE ratio of 150.70, a price-to-earnings-growth ratio of 0.61 and a beta of 0.71. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.81 and a current ratio of 0.93.

Omnicom Group (NYSE:OMC - Get Free Report) last posted 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 the consensus estimate of $7.58 billion. Omnicom Group had a positive return on equity of 25.65% and a negative net margin of 0.32%.The business's quarterly revenue was up 27.9% on a year-over-year basis. During the same quarter last year, the firm earned $2.41 earnings per share. Sell-side analysts anticipate that Omnicom Group Inc. will post 8.25 earnings per share for the current fiscal year.

Omnicom Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Wednesday, March 11th will be paid a dividend of $0.80 per share. The ex-dividend date of this dividend is Wednesday, March 11th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.3%. Omnicom Group's dividend payout ratio is currently 653.06%.

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

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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