Legal & General Group Plc Increases Position in Omnicom Group Inc. $OMC

Key Points

• Legal & General Group Plc increased its stake in Omnicom Group by 3.2% in the fourth quarter, bringing its holdings to 1.41 million shares valued at about $113.9 million.
• Omnicom recently reported strong quarterly earnings, posting $1.90 EPS and $6.24 billion in revenue, both above analyst estimates. Revenue also rose sharply year over year.
• The company has a $5 billion share buyback authorization in place and declared a quarterly dividend of $0.80 per share, implying an annual yield of about 4.3%.

Legal & General Group Plc lifted its stake in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 3.2% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,410,514 shares of the business services provider's stock after acquiring an additional 44,014 shares during the quarter. Legal & General Group Plc owned 0.73% of Omnicom Group worth $113,899,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also modified their holdings of the company. Activest Wealth Management boosted its stake in Omnicom Group by 2,960.0% in the fourth 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 purchased a new stake in shares of Omnicom Group in the fourth quarter valued at about $26,000. Elyxium Wealth LLC purchased a new stake in shares of Omnicom Group in the fourth quarter valued at about $26,000. Cornerstone Planning Group LLC raised its holdings in Omnicom Group by 2,126.7% during the third quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock worth $27,000 after purchasing an additional 319 shares in the last quarter. Finally, Legacy Wealth Managment LLC ID raised its holdings in Omnicom Group by 111.4% during the fourth quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider's stock worth $27,000 after purchasing an additional 176 shares in the last quarter. Hedge funds and other institutional investors own 91.97% of the company's stock.

Analyst Ratings Changes

Several analysts have recently commented on OMC shares. Morgan Stanley increased their price target on shares of Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a research report on Friday, May 1st. Argus upgraded shares of Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Omnicom Group in a research note on Friday, May 22nd. Rothschild & Co Redburn started coverage on shares of Omnicom Group in a research note on Thursday. They set a "neutral" rating and a $89.00 price target on the stock. Finally, UBS Group raised their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Four equities 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 company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $93.13.

Omnicom Group Stock Down 1.0%

OMC stock opened at $74.09 on Friday. Omnicom Group Inc. has a 52 week low of $66.33 and a 52 week high of $87.17. The company has a market capitalization of $21.12 billion, a price-to-earnings ratio of 189.98, a price-to-earnings-growth ratio of 0.45 and a beta of 0.66. The firm's 50-day moving average is $75.55 and its two-hundred day moving average is $76.52. The company has a current ratio of 0.91, a quick ratio of 0.77 and a debt-to-equity ratio of 0.99.

Omnicom Group (NYSE:OMC - Get Free Report) last released its earnings results on Wednesday, April 29th. The business services provider reported $1.90 EPS for the quarter, topping analysts' consensus estimates of $1.84 by $0.06. The business had revenue of $6.24 billion for 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 business's revenue for the quarter was up 69.2% on a year-over-year basis. During the same period in the previous year, the firm earned $1.70 EPS. On average, analysts forecast that Omnicom Group Inc. will post 10.97 earnings per share for the current fiscal year.

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

Omnicom Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Wednesday, June 10th will be given a dividend of $0.80 per share. The ex-dividend date of this dividend is Wednesday, June 10th. This represents a $3.20 dividend on an annualized basis and a yield of 4.3%. Omnicom Group's payout ratio is presently 820.51%.

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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