Invenomic Capital Management LP Grows Holdings in Omnicom Group Inc. $OMC

Key Points

• Invenomic Capital Management increased its Omnicom Group stake by 127.9% in the fourth quarter, ending with 455,671 shares worth about $36.8 million.
• Other institutional investors also boosted holdings, with Vanguard, State Street, and Bank of New York Mellon among the biggest buyers; overall, 91.97% of OMC shares are owned by institutional investors.
• Omnicom posted better-than-expected quarterly results and continues to return cash to shareholders, including a $0.80 quarterly dividend and a $5 billion share repurchase authorization.

Invenomic Capital Management LP grew its holdings in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 127.9% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 455,671 shares of the business services provider's stock after buying an additional 255,765 shares during the quarter. Omnicom Group accounts for about 1.7% of Invenomic Capital Management LP's investment portfolio, making the stock its 14th largest holding. Invenomic Capital Management LP owned about 0.24% of Omnicom Group worth $36,795,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds also recently made changes to their positions in OMC. Vanguard Group Inc. boosted its stake in shares of Omnicom Group by 64.2% during the 4th quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider's stock valued at $3,143,930,000 after buying an additional 15,220,444 shares during the last quarter. State Street Corp lifted its stake in Omnicom Group by 40.4% during the fourth quarter. State Street Corp now owns 23,676,768 shares of the business services provider's stock worth $1,933,891,000 after purchasing an additional 6,813,441 shares during the last quarter. First Eagle Investment Management LLC bought a new position in Omnicom Group during the third quarter worth $515,145,000. Bank of New York Mellon Corp lifted its stake in Omnicom Group by 69.6% during the fourth quarter. Bank of New York Mellon Corp now owns 11,283,863 shares of the business services provider's stock worth $911,172,000 after purchasing an additional 4,631,394 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake 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 worth $690,327,000 after purchasing an additional 3,117,188 shares during the last quarter. 91.97% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Morgan Stanley raised their price objective on Omnicom Group from $82.00 to $83.00 and gave the stock an "equal weight" rating in a research note on Friday, May 1st. Rothschild & Co Redburn assumed coverage on Omnicom Group in a research note on Thursday, May 28th. They set a "neutral" rating and a $89.00 price objective on the stock. Weiss Ratings restated a "hold (c-)" rating on shares of Omnicom Group in a research note on Friday, May 22nd. Argus upgraded Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Finally, The Goldman Sachs Group assumed coverage on Omnicom Group in a research note on Wednesday, June 3rd. They set a "buy" rating and a $146.00 price objective on the stock. 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 stock. According to MarketBeat.com, Omnicom Group presently has an average rating of "Hold" and a consensus price target of $99.00.

Omnicom Group Stock Performance

OMC stock opened at $76.18 on Thursday. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.77 and a current ratio of 0.91. The stock has a market capitalization of $21.71 billion, a price-to-earnings ratio of 195.34, a PEG ratio of 0.46 and a beta of 0.63. Omnicom Group Inc. has a 1 year low of $66.33 and a 1 year high of $87.17. The stock's fifty day moving average is $75.58 and its two-hundred day moving average is $76.77.

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

Omnicom Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Wednesday, June 10th will be issued 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 is Wednesday, June 10th. Omnicom Group's dividend payout ratio (DPR) is 820.51%.

Omnicom Group declared that its Board of Directors has approved a share repurchase plan 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 purchase up to 38.1% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board believes its shares are undervalued.

Omnicom Group Company 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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