KLP Kapitalforvaltning AS Acquires 62,569 Shares of Omnicom Group Inc. $OMC

Key Points

• KLP Kapitalforvaltning AS boosted its stake in Omnicom by 59.1%, buying an additional 62,569 shares to hold 168,357 shares (about 0.09% of the company) valued at roughly $13.7M.
• Omnicom's board authorized a $5.0 billion share repurchase program, allowing buybacks of up to 38.1% of outstanding shares.
• The company missed quarterly expectations, reporting $2.59 EPS vs. $2.94 expected and $5.53B revenue vs. $7.58B expected, while paying a quarterly dividend of $0.80 (annualized yield ~4.2%).

KLP Kapitalforvaltning AS grew its holdings in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 59.1% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 168,357 shares of the business services provider's stock after purchasing an additional 62,569 shares during the quarter. KLP Kapitalforvaltning AS owned about 0.09% of Omnicom Group worth $13,701,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. First Eagle Investment Management LLC purchased a new stake in shares of Omnicom Group in the third quarter worth about $515,145,000. Bank of New York Mellon Corp lifted its holdings in shares of Omnicom Group by 73.6% in the third quarter. Bank of New York Mellon Corp now owns 6,652,469 shares of the business services provider's stock worth $542,376,000 after buying an additional 2,820,553 shares in the last quarter. State Street Corp lifted its holdings in shares of Omnicom Group by 15.8% in the third quarter. State Street Corp now owns 16,863,327 shares of the business services provider's stock worth $1,384,980,000 after buying an additional 2,298,652 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of Omnicom Group by 30.5% in the third quarter. JPMorgan Chase & Co. now owns 8,107,021 shares of the business services provider's stock worth $660,969,000 after buying an additional 1,893,316 shares in the last quarter. Finally, Balyasny Asset Management L.P. lifted its holdings in shares of Omnicom Group by 122.3% in the third quarter. Balyasny Asset Management L.P. now owns 1,663,251 shares of the business services provider's stock worth $135,605,000 after buying an additional 914,885 shares in the last quarter. Institutional investors own 91.97% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on OMC shares. Citigroup increased their price target on shares of Omnicom Group from $103.00 to $115.00 and gave the stock a "buy" rating in a report on Friday, February 20th. Weiss Ratings reissued a "hold (c)" rating on shares of Omnicom Group in a report on Thursday, January 22nd. Argus raised shares of Omnicom Group to a "hold" rating in a report on Thursday, March 26th. UBS Group increased their price target 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, Bank of America reissued an "underperform" rating and issued a $77.00 price target (down from $87.00) on shares of Omnicom Group in a report on Monday, January 5th. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $95.86.

Omnicom Group Trading Down 1.7%

Shares of OMC opened at $76.76 on Friday. The firm's 50 day simple moving average is $77.89 and its 200 day simple moving average is $76.89. The company has a market capitalization of $21.88 billion, a P/E ratio of 156.65, a P/E/G ratio of 0.60 and a beta of 0.73. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.93 and a quick ratio of 0.81. Omnicom Group Inc. has a 1-year low of $66.33 and a 1-year high of $87.17.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share for the quarter, missing analysts' consensus estimates of $2.94 by ($0.35). The company had revenue of $5.53 billion during the quarter, compared to analysts' expectations of $7.58 billion. Omnicom Group had a negative net margin of 0.32% and a positive return on equity of 25.65%. The company's revenue for the quarter was up 27.9% compared to the same quarter last year. During the same period in the prior year, the business earned $2.41 earnings per share. Sell-side analysts forecast that Omnicom Group Inc. will post 10.92 earnings per share for the current fiscal year.

Omnicom Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Wednesday, March 11th were paid a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date of this dividend was Wednesday, March 11th. Omnicom Group's dividend payout ratio (DPR) is currently 653.06%.

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