DNB Asset Management AS Grows Stake in Omnicom Group Inc. $OMC

Key Points

• DNB Asset Management AS increased its Omnicom Group stake by 479.7% in the fourth quarter, bringing its holdings to 213,772 shares valued at about $17.3 million.
• Omnicom reported strong quarterly results, with EPS of $1.90 beating estimates and revenue of $6.24 billion coming in above expectations; revenue also rose sharply year over year.
• The company’s board authorized a $5 billion share repurchase program and it also declared a quarterly dividend of $0.80 per share, implying a 4.5% annualized yield.

DNB Asset Management AS grew its position in Omnicom Group Inc. (NYSE:OMC - Free Report) by 479.7% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 213,772 shares of the business services provider's stock after purchasing an additional 176,894 shares during the quarter. DNB Asset Management AS owned about 0.11% of Omnicom Group worth $17,262,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Vanguard Group Inc. grew its holdings in shares of Omnicom Group by 64.2% during the fourth 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 last quarter. First Eagle Investment Management LLC purchased a new stake in shares of Omnicom Group during the third quarter valued at $515,145,000. Bank of New York Mellon Corp boosted its holdings 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 valued at $542,376,000 after acquiring an additional 2,820,553 shares during the last quarter. State Street Corp boosted its holdings 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 valued at $1,384,980,000 after acquiring an additional 2,298,652 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its stake in shares of Omnicom Group by 30.5% in the third quarter. JPMorgan Chase & Co. now owns 8,107,021 shares of the business services provider's stock worth $660,969,000 after acquiring an additional 1,893,316 shares during the period. 91.97% of the stock is owned by hedge funds and other institutional investors.

Omnicom Group Stock Down 1.0%

OMC opened at $70.89 on Friday. Omnicom Group Inc. has a twelve month low of $66.33 and a twelve month high of $87.17. The company has a quick ratio of 0.77, a current ratio of 0.91 and a debt-to-equity ratio of 0.99. The company has a 50-day moving average price of $76.81 and a 200 day moving average price of $76.58. The company has a market cap of $20.20 billion, a PE ratio of 181.78, a price-to-earnings-growth ratio of 0.42 and a beta of 0.66.

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

Omnicom Group declared that its board has authorized a stock repurchase program on Wednesday, February 18th that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the business services provider to reacquire up to 38.1% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its shares are 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. This represents a $3.20 annualized dividend and a dividend yield of 4.5%. The ex-dividend date is Wednesday, June 10th. Omnicom Group's dividend payout ratio is 820.51%.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. Weiss Ratings restated a "hold (c)" rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Barclays boosted their target price on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research report on Monday, February 23rd. Argus upgraded shares of Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Morgan Stanley boosted their target price on shares of Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a research report on Friday, May 1st. Finally, UBS Group boosted their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research report on Friday, March 20th. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $93.71.

About Omnicom Group

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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