Envestnet Asset Management Inc. Cuts Holdings in Omnicom Group Inc. $OMC

Key Points

• Envestnet Asset Management reduced its Omnicom stake by 2.3% in the second quarter, selling 44,379 shares and retaining 1.9 million shares valued at approximately $138.3 million. Institutional investors collectively own 91.97% of OMC.
• Analysts maintain a consensus “Hold” rating with an average price target of $99.00; four analysts rate the stock a Buy, five a Hold and two a Sell.
• Omnicom reported quarterly revenue of $6.56 billion, up 63.4% year over year, but earnings of $2.65 per share narrowly missed estimates. The company declared a quarterly dividend of $0.80, implying a 4.2% annualized yield.

Envestnet Asset Management Inc. trimmed its stake in Omnicom Group Inc. (NYSE:OMC - Free Report) by 2.3% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,899,496 shares of the business services provider's stock after selling 44,379 shares during the period. Envestnet Asset Management Inc. owned 0.69% of Omnicom Group worth $138,340,000 as of its most recent SEC filing.

A number of other large investors have also recently modified their holdings of the stock. Keating Financial Advisory Services Inc. purchased a new stake in Omnicom Group in the second quarter worth about $25,000. REAP Financial Group LLC purchased a new stake in Omnicom Group in the fourth quarter worth $35,000. Clearstead Trust LLC bought a new position in Omnicom Group in the second quarter worth $36,000. Raiffeisen Bank International AG raised its holdings in Omnicom Group by 119.7% in the second quarter. Raiffeisen Bank International AG now owns 503 shares of the business services provider's stock worth $37,000 after purchasing an additional 274 shares in the last quarter. Finally, SJS Investment Consulting Inc. lifted its position in Omnicom Group by 39.1% during the first quarter. SJS Investment Consulting Inc. now owns 544 shares of the business services provider's stock valued at $41,000 after buying an additional 153 shares during the period. Institutional investors own 91.97% of the company's stock.

Insider Transactions at Omnicom Group

In other Omnicom Group news, Director Linda Rice sold 1,385 shares of the firm's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $88.73, for a total value of $122,891.05. Following the transaction, the director directly owned 11,719 shares of the company's stock, valued at approximately $1,039,826.87. This trade represents a 10.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 1.20% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. Argus upgraded shares of Omnicom Group to a "hold" rating in a report on Monday, September 14th. Wells Fargo & Company lifted their target price on shares of Omnicom Group from $91.00 to $93.00 and gave the company an "overweight" rating in a report on Thursday, July 30th. The Goldman Sachs Group assumed coverage on Omnicom Group in a research note on Wednesday, June 3rd. They issued a "buy" rating and a $146.00 price target on the stock. Citigroup reduced their price objective on Omnicom Group from $105.00 to $100.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Finally, Weiss Ratings raised Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 30th. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $99.00.

Omnicom Group Stock Performance

Shares of NYSE OMC opened at $76.01 on Friday. The company has a quick ratio of 0.78, a current ratio of 0.92 and a debt-to-equity ratio of 0.97. The firm's 50-day moving average price is $82.44 and its 200-day moving average price is $78.42. Omnicom Group Inc. has a 52-week low of $66.33 and a 52-week high of $89.57. The company has a market cap of $20.85 billion, a PE ratio of 65.53, a PEG ratio of 0.63 and a beta of 0.65.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its earnings results on Tuesday, July 28th. The business services provider reported $2.65 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.67 by ($0.02). The company had revenue of $6.56 billion during the quarter, compared to analysts' expectations of $6.44 billion. Omnicom Group had a return on equity of 24.73% and a net margin of 1.74%.The company's revenue for the quarter was up 63.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.05 EPS. As a group, analysts anticipate that Omnicom Group Inc. will post 10.5 EPS for the current year.

Omnicom Group Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 18th will be issued a $0.80 dividend. The ex-dividend date of this dividend is Friday, September 18th. This represents a $3.20 dividend on an annualized basis and a yield of 4.2%. Omnicom Group's dividend payout ratio is currently 275.86%.

Omnicom Group Company Profile

Omnicom Group Inc NYSE: OMC is a global marketing and communications holding company. Through a network of agencies and specialized businesses, it provides advertising, branding, media planning and buying, public relations, customer relationship management, digital marketing, experiential marketing and healthcare communications services.

Omnicom's agency brands have included BBDO Worldwide, DDB Worldwide, TBWA\Worldwide, Omnicom Media Group, FleishmanHillard and Ketchum. These businesses serve clients across industries, including consumer products, healthcare, technology, financial services, automotive and telecommunications, helping organizations develop brand strategies, create campaigns and engage audiences through traditional and digital channels.

Omnicom was formed in 1986 through the merger of advertising companies BBDO, Doyle Dane Bernbach and Needham Harper Worldwide.

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