Meritage Portfolio Management Increases Position in Omnicom Group Inc. $OMC

Key Points

• Meritage Portfolio Management increased its stake in Omnicom Group Inc. by 55.3%, acquiring 15,670 additional shares, bringing their total holdings to 43,986 shares valued at $3.16 million.
• Omnicom Group recently announced a quarterly dividend of $0.70 per share, translating to a 3.7% dividend yield with a payout ratio of 40.17%.
• Wells Fargo upgraded Omnicom's stock rating from "equal weight" to "overweight", and raised the price target from $78.00 to $91.00, indicating a positive outlook from analysts.

Meritage Portfolio Management increased its stake in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 55.3% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 43,986 shares of the business services provider's stock after buying an additional 15,670 shares during the quarter. Meritage Portfolio Management's holdings in Omnicom Group were worth $3,164,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Zions Bancorporation National Association UT purchased a new stake in shares of Omnicom Group during the first quarter valued at $34,000. Ameritas Advisory Services LLC purchased a new stake in Omnicom Group in the second quarter valued at $34,000. Gen Wealth Partners Inc purchased a new stake in Omnicom Group in the first quarter valued at $36,000. Golden State Wealth Management LLC boosted its holdings in Omnicom Group by 230.2% in the first quarter. Golden State Wealth Management LLC now owns 492 shares of the business services provider's stock valued at $41,000 after purchasing an additional 343 shares during the last quarter. Finally, N.E.W. Advisory Services LLC purchased a new stake in Omnicom Group in the first quarter valued at $43,000. 91.97% of the stock is owned by hedge funds and other institutional investors.

Omnicom Group Trading Down 1.4%

OMC stock opened at $76.50 on Monday. The company's 50-day simple moving average is $76.88 and its 200-day simple moving average is $74.94. The company has a quick ratio of 0.80, a current ratio of 0.92 and a debt-to-equity ratio of 0.97. Omnicom Group Inc. has a 52-week low of $68.37 and a 52-week high of $107.00. The firm has a market cap of $14.82 billion, a P/E ratio of 10.98, a PEG ratio of 1.49 and a beta of 0.96.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its earnings results on Tuesday, July 15th. The business services provider reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.02 by $0.03. Omnicom Group had a net margin of 8.67% and a return on equity of 33.62%. The business had revenue of $4.02 billion for the quarter, compared to analyst estimates of $3.95 billion. During the same period in the prior year, the company posted $1.95 EPS. The company's revenue for the quarter was up 4.2% on a year-over-year basis. As a group, equities analysts forecast that Omnicom Group Inc. will post 8.25 EPS for the current fiscal year.

Omnicom Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 10th. Investors of record on Tuesday, September 2nd were given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a dividend yield of 3.7%. The ex-dividend date was Tuesday, September 2nd. Omnicom Group's dividend payout ratio is 40.17%.

Wall Street Analysts Forecast Growth

OMC has been the topic of several recent research reports. Wells Fargo & Company raised shares of Omnicom Group from an "equal weight" rating to an "overweight" rating and upped their price target for the company from $78.00 to $91.00 in a report on Tuesday, September 23rd. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a report on Wednesday, October 8th. Bank of America raised shares of Omnicom Group from an "underperform" rating to a "neutral" rating and set a $80.00 price target on the stock in a report on Monday, June 23rd. Barclays lowered shares of Omnicom Group from an "overweight" rating to an "equal weight" rating and lowered their price target for the company from $105.00 to $80.00 in a report on Wednesday, June 25th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Omnicom Group from $104.00 to $96.00 and set an "overweight" rating on the stock in a research note on Thursday, July 10th. Five research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, Omnicom Group presently has an average rating of "Moderate Buy" and an average price target of $96.29.

About Omnicom Group

Omnicom Group Inc, together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, public relations, and healthcare.

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