HighTower Advisors LLC Sells 186,077 Shares of Omnicom Group Inc. $OMC

Key Points

• HighTower Advisors cut its Omnicom stake by 66.6% in the second quarter, selling 186,077 shares and retaining 93,351 shares valued at approximately $6.8 million. Institutional investors collectively own 91.97% of OMC.
• Omnicom reported quarterly revenue of $6.56 billion, up 63.4% year over year and above estimates, although earnings per share of $2.65 narrowly missed expectations. The company declared a quarterly dividend of $0.80, representing a 4.0% annualized yield.
• OMC shares opened at $79.38, while analysts maintain a consensus “Hold” rating with an average price target of $99.00; ratings include four Buys, five Holds, and two Sells.

HighTower Advisors LLC trimmed its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 66.6% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 93,351 shares of the business services provider's stock after selling 186,077 shares during the quarter. HighTower Advisors LLC's holdings in Omnicom Group were worth $6,799,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also added to or reduced their stakes in OMC. Keating Financial Advisory Services Inc. bought a new stake in Omnicom Group in the second quarter worth approximately $25,000. Elyxium Wealth LLC bought a new position in shares of Omnicom Group during the 4th quarter worth approximately $26,000. EFG International AG acquired a new stake in shares of Omnicom Group during the 4th quarter worth approximately $28,000. Caitlin John LLC grew its position in shares of Omnicom Group by 4,675.0% during the 4th 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. Finally, Wealth Watch Advisors INC bought a new stake in shares of Omnicom Group in the 3rd quarter valued at $34,000. Institutional investors and hedge funds own 91.97% of the company's stock.

Insider Activity at Omnicom Group

In related 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 directly owned 11,719 shares of the company's stock, valued at $1,039,826.87. This trade represents a 10.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.20% of the stock is currently owned by corporate insiders.

Omnicom Group Price Performance

OMC stock opened at $79.38 on Friday. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.78 and a current ratio of 0.92. The business has a 50-day simple moving average of $83.23 and a two-hundred day simple moving average of $78.90. The company has a market capitalization of $21.78 billion, a P/E ratio of 68.43, a price-to-earnings-growth ratio of 0.67 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.

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

Omnicom Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Friday, September 18th will be paid a $0.80 dividend. The ex-dividend date is Friday, September 18th. This represents a $3.20 annualized dividend and a dividend yield of 4.0%. Omnicom Group's dividend payout ratio is presently 275.86%.

Wall Street Analyst Weigh In

OMC has been the topic of a number of research reports. The Goldman Sachs Group initiated coverage on shares of Omnicom Group in a research report on Wednesday, June 3rd. They set a "buy" rating and a $146.00 target price on the stock. Citigroup decreased their price target on shares of Omnicom Group from $105.00 to $100.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Weiss Ratings upgraded shares of Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 30th. Wells Fargo & Company increased their price objective on shares of Omnicom Group from $91.00 to $93.00 and gave the stock an "overweight" rating in a research report on Thursday, July 30th. Finally, Rothschild & Co Redburn began coverage on Omnicom Group in a research note on Thursday, May 28th. They issued a "neutral" rating and a $89.00 target price for the company. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Omnicom Group 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 communications holding company. Through a network of agencies and specialized businesses, it provides advertising, branding, media planning and buying, public relations, customer relationship management, digital marketing, experiential marketing and healthcare communications services.

Omnicom's agency brands have included BBDO Worldwide, DDB Worldwide, TBWA\Worldwide, Omnicom Media Group, FleishmanHillard and Ketchum. These businesses serve clients across industries, including consumer products, healthcare, technology, financial services, automotive and telecommunications, helping organizations develop brand strategies, create campaigns and engage audiences through traditional and digital channels.

Omnicom was formed in 1986 through the merger of advertising companies BBDO, Doyle Dane Bernbach and Needham Harper Worldwide.

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