Goldman Sachs Group Inc. Acquires 2,883,520 Shares of Omnicom Group Inc. $OMC

Key Points

• Goldman Sachs boosted its stake in Omnicom Group by 89.5% in the fourth quarter, buying an additional 2.88 million shares and bringing its total holding to 6.11 million shares worth about $493.1 million.
• Omnicom reported better-than-expected quarterly results, with earnings of $1.90 per share versus estimates of $1.84 and revenue of $6.24 billion versus $5.85 billion expected.
• The company also authorized a $5 billion stock buyback and declared a quarterly dividend of $0.80 per share, implying an annualized yield of about 4.2%.

Goldman Sachs Group Inc. increased its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 89.5% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 6,106,022 shares of the business services provider's stock after purchasing an additional 2,883,520 shares during the quarter. Goldman Sachs Group Inc. owned approximately 3.16% of Omnicom Group worth $493,061,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Vanguard Group Inc. increased its position in shares of 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 buying an additional 15,220,444 shares during the period. First Eagle Investment Management LLC acquired a new position in Omnicom Group in the third quarter valued at $515,145,000. Geode Capital Management LLC boosted its position 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 valued at $690,327,000 after acquiring an additional 3,117,188 shares during the last quarter. State Street Corp boosted its position 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 valued at $1,384,980,000 after acquiring an additional 2,298,652 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its holdings in Omnicom Group by 30.5% during the 3rd 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. 91.97% of the stock is currently owned by institutional investors and hedge funds.

Omnicom Group Stock Performance

Shares of OMC opened at $75.62 on Friday. Omnicom Group Inc. has a one year low of $66.33 and a one year high of $87.17. The company has a market cap of $21.55 billion, a PE ratio of 193.90, a P/E/G ratio of 0.44 and a beta of 0.63. The stock has a 50-day moving average of $75.46 and a 200-day moving average of $76.57. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.91 and a quick ratio of 0.77.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The business services provider reported $1.90 earnings per share for the quarter, topping analysts' consensus estimates of $1.84 by $0.06. Omnicom Group had a return on equity of 24.48% and a net margin of 0.32%.The business had revenue of $6.24 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same period in the prior year, the business earned $1.70 EPS. The firm's revenue for the quarter was up 69.2% on a year-over-year basis. On average, equities research analysts predict that Omnicom Group Inc. will post 10.97 EPS for the current fiscal year.

Omnicom Group declared that its board has authorized a stock buyback program on Wednesday, February 18th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the business services provider to reacquire up to 38.1% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Omnicom Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Wednesday, June 10th will be issued a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date is Wednesday, June 10th. Omnicom Group's dividend payout ratio (DPR) is currently 820.51%.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on OMC shares. Rothschild & Co Redburn began coverage on Omnicom Group in a research report on Thursday, May 28th. They issued a "neutral" rating and a $89.00 price objective for the company. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Omnicom Group in a research note on Friday, May 22nd. Citigroup lowered their target price on Omnicom Group from $115.00 to $105.00 and set a "buy" rating for the company in a report on Thursday, April 30th. Argus upgraded Omnicom Group to a "hold" rating in a report on Thursday, March 26th. Finally, UBS Group raised their price objective on shares of Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Five research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $99.00.

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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