Eurizon Capital SGR S.p.A. Buys New Shares in Omnicom Group Inc. $OMC

Key Points

• Eurizon Capital SGR disclosed a new fourth-quarter stake in Omnicom Group, buying 34,873 shares valued at about $2.8 million.
• Omnicom’s latest quarterly results beat expectations, with EPS of $1.90 and revenue of $6.24 billion, while management also authorized a $5 billion share buyback.
• The stock offers a 4.2% dividend yield and has received a mixed analyst view, with MarketBeat showing an overall Hold rating and a consensus price target of $93.13.

Eurizon Capital SGR S.p.A. bought a new stake in Omnicom Group Inc. (NYSE:OMC - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 34,873 shares of the business services provider's stock, valued at approximately $2,815,000.

A number of other hedge funds and other institutional investors have also modified their holdings of OMC. Vanguard Group Inc. grew its holdings in 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 worth $3,143,930,000 after purchasing an additional 15,220,444 shares during the period. State Street Corp grew its holdings in Omnicom Group by 15.8% during the third quarter. State Street Corp now owns 16,863,327 shares of the business services provider's stock worth $1,384,980,000 after purchasing an additional 2,298,652 shares during the period. Geode Capital Management LLC grew its holdings in Omnicom Group by 57.1% during 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 purchasing an additional 3,117,188 shares during the period. JPMorgan Chase & Co. boosted its holdings in shares of Omnicom Group by 30.5% during 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. Finally, Massachusetts Financial Services Co. MA boosted its holdings in shares of Omnicom Group by 5.8% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 7,870,437 shares of the business services provider's stock worth $635,538,000 after acquiring an additional 433,461 shares during the period. Institutional investors and hedge funds own 91.97% of the company's stock.

Omnicom Group Stock Performance

Shares of Omnicom Group stock opened at $76.15 on Tuesday. 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 stock has a market cap of $21.70 billion, a price-to-earnings ratio of 195.27, a P/E/G ratio of 0.44 and a beta of 0.64. The company's fifty day moving average is $75.49 and its 200 day moving average is $76.54. Omnicom Group Inc. has a twelve month low of $66.33 and a twelve month high of $87.17.

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 analysts' consensus estimates of $1.84 by $0.06. The business had revenue of $6.24 billion for the quarter, compared to analysts' expectations of $5.85 billion. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The business's quarterly revenue was up 69.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.70 earnings per share. Sell-side analysts forecast that Omnicom Group Inc. will post 10.97 EPS for the current year.

Omnicom Group announced that its board has authorized a share buyback program on Wednesday, February 18th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the business services provider to buy up to 38.1% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Omnicom Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Wednesday, June 10th will be issued a dividend of $0.80 per share. The ex-dividend date is Wednesday, June 10th. This represents a $3.20 annualized dividend and a dividend yield of 4.2%. Omnicom Group's dividend payout ratio is currently 820.51%.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on OMC shares. Argus upgraded shares of Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Rothschild & Co Redburn assumed coverage on shares of Omnicom Group in a research report on Thursday, May 28th. They set a "neutral" rating and a $89.00 price objective for the company. UBS Group boosted their price objective 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. Weiss Ratings restated a "hold (c-)" rating on shares of Omnicom Group in a research report on Friday, May 22nd. Finally, Morgan Stanley boosted their price objective 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. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $93.13.

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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