Hsbc Holdings PLC Has $67 Million Holdings in Omnicom Group Inc. $OMC

Key Points

• HSBC increased its Omnicom Group stake by 32.6% in the second quarter, acquiring 226,133 additional shares. Its 920,054 shares were valued at approximately $67 million, while institutional investors collectively owned 91.97% of OMC.
• Omnicom reported quarterly revenue of $6.56 billion, up 63.4% year over year, though earnings of $2.65 per share slightly missed analyst expectations. The company declared a quarterly dividend of $0.80 per share, representing a 3.9% yield.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $99 versus the reported share price of $82.49. Price targets ranged from $89 to $146, while one firm downgraded the stock to “strong sell.”

Hsbc Holdings PLC boosted its stake in Omnicom Group Inc. (NYSE:OMC - Free Report) by 32.6% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 920,054 shares of the business services provider's stock after acquiring an additional 226,133 shares during the quarter. Hsbc Holdings PLC owned 0.34% of Omnicom Group worth $66,995,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. EverSource Wealth Advisors LLC boosted its position 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 purchasing an additional 869 shares during the last quarter. Gamco Investors INC. ET AL acquired a new stake in shares of Omnicom Group in the 2nd quarter valued at approximately $241,000. Gabelli Funds LLC bought a new position in shares of Omnicom Group in the second quarter valued at $1,061,000. Daiwa Securities Group Inc. grew its stake in shares of Omnicom Group by 5.3% in 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 buying an additional 1,482 shares in the last quarter. Finally, Sei Investments Co. increased 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 worth $25,990,000 after buying an additional 44,746 shares during the last quarter. 91.97% of the stock is owned by institutional investors.

Omnicom Group Stock Performance

NYSE OMC opened at $82.49 on Tuesday. The firm's 50 day simple moving average is $83.00 and its 200 day simple moving average is $78.87. The firm has a market capitalization of $22.63 billion, a price-to-earnings ratio of 71.11, a P/E/G ratio of 0.71 and a beta of 0.65. The company has a current ratio of 0.92, a quick ratio of 0.78 and a debt-to-equity ratio of 0.97. Omnicom Group Inc. has a 1 year low of $66.33 and a 1 year high of $89.57.

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

Omnicom Group Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Friday, September 18th will be issued a dividend of $0.80 per share. The ex-dividend date of this dividend is Friday, September 18th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 3.9%. Omnicom Group's payout ratio is 275.86%.

Analysts Set New Price Targets

A number of brokerages have commented on OMC. Wells Fargo & Company increased their price target on shares of Omnicom Group from $91.00 to $93.00 and gave the company an "overweight" rating in a research note on Thursday, July 30th. Citigroup lowered their price objective on shares of Omnicom Group from $105.00 to $100.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. The Goldman Sachs Group began coverage on shares of Omnicom Group in a report on Wednesday, June 3rd. They issued a "buy" rating and a $146.00 target price on the stock. Rothschild & Co Redburn began coverage on shares of Omnicom Group in a research note on Thursday, May 28th. They issued a "neutral" rating and a $89.00 target price for the company. Finally, Zacks Research cut Omnicom Group from a "hold" rating to a "strong sell" rating in a report on Thursday, July 30th. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $99.00.

Insider Activity at Omnicom Group

In related news, Director Linda Rice sold 1,385 shares of the company's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $88.73, for a total transaction of $122,891.05. Following the completion of the sale, the director directly owned 11,719 shares in the company, valued at $1,039,826.87. This represents a 10.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Company insiders own 1.20% of the company's stock.

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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