Intact Investment Management Inc. Buys New Stake in Omnicom Group Inc. $OMC

Key Points

• Intact Investment Management initiated a new position in Omnicom during Q4, buying 54,400 shares valued at about $4.39 million, and institutional investors now own roughly 91.97% of the company.
• Omnicom beat Q1 estimates with $1.90 EPS (vs. $1.84) and $6.24B revenue (+69.2% YoY), and its board authorized a $5.00 billion buyback; the company also pays a $0.80 quarterly dividend (4.2% yield).
• Analysts are mixed on the stock—four Buys, four Holds and one Sell—leaving a MarketBeat consensus rating of Hold with a $93.71 price target.

Intact Investment Management Inc. bought a new stake in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 54,400 shares of the business services provider's stock, valued at approximately $4,393,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Activest Wealth Management lifted its holdings in shares of Omnicom Group by 2,960.0% during the 4th quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock valued at $25,000 after acquiring an additional 296 shares in the last quarter. Bayforest Capital Ltd acquired a new position in shares of Omnicom Group during the 4th quarter valued at $26,000. Cornerstone Planning Group LLC lifted its holdings in shares of Omnicom Group by 2,126.7% during the 3rd quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock valued at $27,000 after acquiring an additional 319 shares in the last quarter. Meeder Asset Management Inc. lifted its holdings in shares of Omnicom Group by 289.4% during the 3rd quarter. Meeder Asset Management Inc. now owns 366 shares of the business services provider's stock valued at $30,000 after acquiring an additional 272 shares in the last quarter. Finally, Westside Investment Management Inc. lifted its holdings in shares of Omnicom Group by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 404 shares of the business services provider's stock valued at $31,000 after acquiring an additional 202 shares in the last quarter. Institutional investors and hedge funds own 91.97% of the company's stock.

Omnicom Group Price Performance

OMC opened at $76.34 on Tuesday. The company has a 50-day moving average of $78.37 and a 200-day moving average of $76.80. The company has a market capitalization of $21.76 billion, a P/E ratio of 195.74, a PEG ratio of 0.60 and a beta of 0.66. Omnicom Group Inc. has a 1-year low of $66.33 and a 1-year high of $87.17. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.77 and a current ratio of 0.91.

Omnicom Group (NYSE:OMC - Get Free Report) last released its earnings results on Tuesday, April 28th. The business services provider reported $1.90 earnings per share for the quarter, topping the consensus estimate of $1.84 by $0.06. The company had revenue of $6.24 billion during the quarter, compared to the consensus estimate of $5.85 billion. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The company's revenue was up 69.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.70 EPS. Equities analysts expect that Omnicom Group Inc. will post 10.77 EPS for the current fiscal year.

Omnicom Group announced that its Board of Directors has authorized a share repurchase plan on Wednesday, February 18th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the business services provider to buy up to 38.1% of its shares through open market purchases. Shares buyback plans are often an indication that the company's leadership believes its shares are undervalued.

Omnicom Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Wednesday, March 11th were given a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend was Wednesday, March 11th. Omnicom Group's dividend payout ratio is currently 820.51%.

Analysts Set New Price Targets

Several equities analysts recently weighed in 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 report on Friday. Barclays lifted their target price 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. Bank of America restated an "underperform" rating and set a $77.00 target price (down from $87.00) on shares of Omnicom Group in a report on Monday, January 5th. UBS Group boosted their price objective on shares of Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a report on Friday, March 20th. Finally, Citigroup cut their price objective on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $93.71.

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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