First Eagle Investment Management LLC Boosts Holdings in Omnicom Group Inc. $OMC

Key Points

• First Eagle Investment Management increased its Omnicom stake by 0.5%, adding 40,096 shares to own 7.34 million shares valued at approximately $534.8 million. Institutional investors collectively hold nearly 92% of OMC’s outstanding stock.
• Omnicom reported quarterly revenue of $6.56 billion, ahead of estimates, while earnings per share of $2.65 slightly missed consensus. Revenue rose 63.4% year over year, though the stock was trading near $82.49, below its $99 average analyst target.
• The company declared a quarterly dividend of $0.80 per share, or $3.20 annualized, representing a 3.9% yield. Analyst sentiment remains mixed, with an overall “Hold” rating despite several Buy or Overweight recommendations.

First Eagle Investment Management LLC raised its position in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 0.5% during the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 7,343,209 shares of the business services provider's stock after acquiring an additional 40,096 shares during the period. First Eagle Investment Management LLC owned approximately 2.68% of Omnicom Group worth $534,806,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in OMC. Keating Financial Advisory Services Inc. bought a new stake in Omnicom Group in the second quarter worth about $25,000. Elyxium Wealth LLC bought a new position in shares of Omnicom Group during the fourth quarter valued at approximately $26,000. Legacy Wealth Managment LLC ID grew its stake in shares of Omnicom Group by 111.4% during the fourth quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider's stock valued at $27,000 after buying an additional 176 shares during the last quarter. EFG International AG purchased a new stake in shares of Omnicom Group in the fourth quarter worth approximately $28,000. Finally, Caitlin John LLC raised its holdings in shares of Omnicom Group by 4,675.0% in the fourth quarter. Caitlin John LLC now owns 382 shares of the business services provider's stock worth $31,000 after buying an additional 374 shares during the period. Hedge funds and other institutional investors own 91.97% of the company's stock.

Omnicom Group Trading Down 0.2%

OMC opened at $82.49 on Monday. The stock's fifty day moving average is $82.83 and its two-hundred day moving average is $78.76. The company has a market capitalization of $22.63 billion, a P/E ratio of 71.11, a PEG ratio of 0.71 and a beta of 0.65. Omnicom Group Inc. has a 52 week low of $66.33 and a 52 week high of $89.57. The company has a quick ratio of 0.78, a current ratio of 0.92 and a debt-to-equity ratio of 0.97.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The business services provider reported $2.65 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.67 by ($0.02). The firm had revenue of $6.56 billion for the quarter, compared to the consensus estimate of $6.44 billion. Omnicom Group had a return on equity of 24.73% and a net margin of 1.74%.Omnicom Group's quarterly revenue was up 63.4% compared to the same quarter last year. During the same period in the previous year, the company posted $2.05 EPS. Analysts forecast that Omnicom Group Inc. will post 10.35 earnings per share for the current year.

Omnicom Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Friday, September 18th will be paid 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 3.9%. Omnicom Group's dividend payout ratio is 275.86%.

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 shares were sold at an average price of $88.73, for a total transaction of $122,891.05. Following the transaction, the director 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 position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.20% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on OMC shares. Weiss Ratings upgraded Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 30th. Citigroup decreased their target price 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. Wells Fargo & Company boosted their target price on shares of Omnicom Group from $91.00 to $93.00 and gave the company an "overweight" rating in a research note on Thursday, July 30th. Rothschild & Co Redburn assumed coverage on shares of Omnicom Group in a report on Thursday, May 28th. They issued a "neutral" rating and a $89.00 price target on the stock. Finally, Zacks Research downgraded shares of Omnicom Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, July 30th. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, Omnicom Group currently has an average rating of "Hold" and an average target price of $99.00.

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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