Gateway Investment Advisers LLC Sells 97,207 Shares of Omnicom Group Inc. $OMC

Key Points

• Gateway Investment Advisers LLC cut its Omnicom Group stake by 76.5% in the fourth quarter, selling 97,207 shares and leaving it with 29,874 shares worth about $2.41 million.
• Omnicom recently reported better-than-expected quarterly results, posting EPS of $1.90 versus the $1.84 consensus and revenue of $6.24 billion versus $5.85 billion expected.
• The company also announced a quarterly dividend of $0.80 per share and a $5 billion share repurchase program, while analysts currently rate the stock a consensus “Hold” with an average price target of $93.71.

Gateway Investment Advisers LLC lessened its holdings in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 76.5% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 29,874 shares of the business services provider's stock after selling 97,207 shares during the quarter. Gateway Investment Advisers LLC's holdings in Omnicom Group were worth $2,412,000 at the end of the most recent quarter.

A number of other large investors have also recently modified their holdings of OMC. EverSource Wealth Advisors LLC boosted its position in shares of Omnicom Group by 82.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,917 shares of the business services provider's stock valued at $138,000 after acquiring an additional 869 shares during the last quarter. Gamco Investors INC. ET AL bought a new stake in shares of Omnicom Group during the 2nd quarter valued at about $241,000. Gabelli Funds LLC bought a new stake in shares of Omnicom Group during the 2nd quarter valued at about $1,061,000. Daiwa Securities Group Inc. boosted its position in shares of Omnicom Group by 5.3% during the 2nd quarter. Daiwa Securities Group Inc. now owns 29,373 shares of the business services provider's stock valued at $2,113,000 after acquiring an additional 1,482 shares during the last quarter. Finally, Sei Investments Co. boosted its position in shares of Omnicom Group by 14.1% during the 2nd quarter. Sei Investments Co. now owns 361,266 shares of the business services provider's stock valued at $25,990,000 after acquiring an additional 44,746 shares during the last quarter. Institutional investors own 91.97% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on OMC shares. Argus upgraded Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Weiss Ratings reissued a "hold (c)" rating on shares of Omnicom Group in a report on Thursday, January 22nd. UBS Group raised their price objective on Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a report on Friday, March 20th. Barclays raised their price objective on Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a report on Monday, February 23rd. Finally, Citigroup decreased their price objective on Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $93.71.

Omnicom Group Price Performance

Shares of Omnicom Group stock opened at $77.04 on Friday. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.91 and a quick ratio of 0.77. The business's 50 day simple moving average is $78.07 and its two-hundred day simple moving average is $76.78. The stock has a market capitalization of $21.96 billion, a P/E ratio of 197.55, a price-to-earnings-growth ratio of 0.46 and a beta of 0.66. Omnicom Group Inc. has a one year low of $66.33 and a one year high of $87.17.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The business services provider reported $1.90 EPS for the quarter, topping 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 return on equity of 24.48% and a net margin of 0.32%.The business's quarterly revenue was up 69.2% on a year-over-year basis. During the same period in the previous year, the firm earned $1.70 EPS. Analysts forecast that Omnicom Group Inc. will post 10.97 EPS for the current year.

Omnicom Group Dividend Announcement

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

Omnicom Group announced that its Board of Directors 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 repurchase up to 38.1% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board believes its shares are 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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