Geode Capital Management LLC Purchases 3,117,188 Shares of Omnicom Group Inc. $OMC

Key Points

• Geode Capital Management increased its Omnicom Group stake by 57.1% in the fourth quarter, buying 3.12 million additional shares and bringing its total holding to 8.58 million shares worth about $690.3 million.
• Omnicom reported better-than-expected quarterly results, with EPS of $1.90 and revenue of $6.24 billion, both ahead of analyst estimates. Revenue rose 69.2% year over year.
• The company also declared a quarterly dividend of $0.80 per share and has an active $5 billion share repurchase program, while analysts currently rate the stock a consensus “Hold.”

Geode Capital Management LLC boosted its position in Omnicom Group Inc. (NYSE:OMC - Free Report) by 57.1% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 8,578,075 shares of the business services provider's stock after acquiring an additional 3,117,188 shares during the period. Geode Capital Management LLC owned 4.44% of Omnicom Group worth $690,327,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in OMC. Activest Wealth Management grew its holdings in Omnicom Group by 2,960.0% in the 4th quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock worth $25,000 after acquiring an additional 296 shares during the last quarter. Bayforest Capital Ltd bought a new stake in Omnicom Group in the 4th quarter worth $26,000. Elyxium Wealth LLC bought a new stake in Omnicom Group in the 4th quarter worth $26,000. Cornerstone Planning Group LLC grew its holdings in Omnicom Group by 2,126.7% in the 3rd quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock worth $27,000 after acquiring an additional 319 shares during the last quarter. Finally, Legacy Wealth Managment LLC ID boosted its stake in shares of Omnicom Group by 111.4% during the 4th quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider's stock valued at $27,000 after purchasing an additional 176 shares in the last quarter. Institutional investors own 91.97% of the company's stock.

Omnicom Group Stock Down 1.7%

Shares of Omnicom Group stock opened at $72.82 on Friday. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.77 and a current ratio of 0.91. The stock has a market capitalization of $20.75 billion, a PE ratio of 186.72, a price-to-earnings-growth ratio of 0.44 and a beta of 0.66. Omnicom Group Inc. has a 52-week low of $66.33 and a 52-week high of $87.17. The company has a 50-day simple moving average of $75.48 and a two-hundred day simple moving average of $76.50.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its earnings results on Wednesday, April 29th. The business services provider reported $1.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.84 by $0.06. The business had revenue of $6.24 billion during 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 revenue for the quarter was up 69.2% compared to the same quarter last year. During the same period in the previous year, the company earned $1.70 earnings per share. On average, analysts anticipate that Omnicom Group Inc. will post 10.97 EPS for the current fiscal year.

Omnicom Group Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Wednesday, June 10th will be issued a $0.80 dividend. The ex-dividend date of this dividend is Wednesday, June 10th. This represents a $3.20 annualized dividend and a yield of 4.4%. Omnicom Group's payout ratio is 820.51%.

Omnicom Group declared that its Board of Directors has initiated a stock repurchase program on Wednesday, February 18th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the business services provider to purchase up to 38.1% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's board believes its shares are undervalued.

Analyst Upgrades and Downgrades

OMC has been the topic of a number of research reports. Citigroup cut their target price on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research note on Thursday, April 30th. Rothschild & Co Redburn initiated coverage on shares of Omnicom Group in a research note on Thursday. They set a "neutral" rating and a $89.00 target price on the stock. Morgan Stanley lifted 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 note on Friday, May 1st. UBS Group lifted their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Omnicom Group in a research note on Friday, May 22nd. 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 stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $93.13.

Omnicom Group 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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