HighTower Advisors LLC Acquires 28,490 Shares of Omnicom Group Inc. $OMC

Key Points

• HighTower Advisors LLC increased its Omnicom Group stake by 11.7% in the fourth quarter, buying 28,490 shares and bringing its total holdings to 272,909 shares valued at about $22.0 million.
• Omnicom reported better-than-expected quarterly results, with EPS of $1.90 versus $1.84 expected and revenue of $6.24 billion versus $5.85 billion expected. The company also raised attention for its strong institutional ownership, with about 91.97% of shares held by institutions.
• The board approved a $5 billion share buyback and the company declared a quarterly dividend of $0.80 per share, equal to a 4.3% annualized yield. Analysts currently have a consensus Hold rating with an average price target of $93.71.

HighTower Advisors LLC increased its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 11.7% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 272,909 shares of the business services provider's stock after purchasing an additional 28,490 shares during the period. HighTower Advisors LLC owned approximately 0.14% of Omnicom Group worth $22,037,000 at the end of the most recent reporting period.

Other large investors have also recently bought and sold shares of the company. EverSource Wealth Advisors LLC boosted its holdings in Omnicom Group by 82.9% during the second 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 period. Gamco Investors INC. ET AL bought a new stake in Omnicom Group during the second quarter valued at about $241,000. Gabelli Funds LLC bought a new stake in Omnicom Group during the second quarter valued at about $1,061,000. Daiwa Securities Group Inc. boosted its holdings in Omnicom Group by 5.3% during the second 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 period. Finally, Sei Investments Co. boosted its holdings in Omnicom Group by 14.1% during the second 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 period. 91.97% of the stock is currently owned by institutional investors.

Omnicom Group Stock Performance

NYSE:OMC opened at $74.95 on Friday. Omnicom Group Inc. has a 12-month low of $66.33 and a 12-month high of $87.17. 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 firm has a market capitalization of $21.36 billion, a PE ratio of 192.19, a price-to-earnings-growth ratio of 0.45 and a beta of 0.66. The firm has a 50-day moving average price of $75.83 and a 200 day moving average price of $76.47.

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

Omnicom Group announced that its board has approved a stock buyback plan on Wednesday, February 18th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to repurchase up to 38.1% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Omnicom Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Wednesday, June 10th will be paid a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 4.3%. The ex-dividend date of this dividend is Wednesday, June 10th. Omnicom Group's dividend payout ratio is currently 820.51%.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Citigroup decreased their price target on shares of 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 shares of Omnicom Group to a "hold" rating in a report on Thursday, March 26th. Barclays upped their price target on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a report on Monday, February 23rd. UBS Group upped their price target on shares of Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a report on Friday, March 20th. Finally, Morgan Stanley upped their price target on shares of Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a report on Friday, May 1st. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $93.71.

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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