Meyer Handelman Co. Reduces Stock Position in Omnicom Group Inc. $OMC

Key Points

• Meyer Handelman Co. trimmed its stake in Omnicom by 26.3%, selling 66,522 shares and retaining 186,157 shares worth about $15.03 million (roughly 0.10% of the company).
• Omnicom's board authorized a $5.00 billion share repurchase (up to ~38.1% of outstanding shares) and declared a $0.80 quarterly dividend, implying a 4.2% yield payable April 9.
• Recent quarterly results missed expectations—EPS $2.59 vs. $2.94 consensus and revenue $5.53B vs. $7.58B—and analysts remain mixed with an average rating of "Hold" and a consensus target of $95.86.

Meyer Handelman Co. trimmed its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 26.3% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 186,157 shares of the business services provider's stock after selling 66,522 shares during the period. Meyer Handelman Co. owned about 0.10% of Omnicom Group worth $15,032,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in the stock. Bollard Group LLC raised its holdings in Omnicom Group by 6.0% in the second quarter. Bollard Group LLC now owns 2,569 shares of the business services provider's stock valued at $185,000 after acquiring an additional 145 shares in the last quarter. Wilmington Savings Fund Society FSB grew its holdings in Omnicom Group by 2.0% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 7,330 shares of the business services provider's stock worth $598,000 after acquiring an additional 145 shares in the last quarter. Leonard Rickey Investment Advisors P.L.L.C. grew its holdings in Omnicom Group by 4.1% during the 4th quarter. Leonard Rickey Investment Advisors P.L.L.C. now owns 3,775 shares of the business services provider's stock worth $305,000 after acquiring an additional 147 shares in the last quarter. Deseret Mutual Benefit Administrators increased its position in shares of Omnicom Group by 7.9% in the 3rd quarter. Deseret Mutual Benefit Administrators now owns 2,031 shares of the business services provider's stock worth $166,000 after purchasing an additional 149 shares during the last quarter. Finally, Impact Partnership Wealth LLC increased its position in shares of Omnicom Group by 3.1% in the 3rd quarter. Impact Partnership Wealth LLC now owns 4,923 shares of the business services provider's stock worth $401,000 after purchasing an additional 150 shares during the last quarter. Institutional investors and hedge funds own 91.97% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on OMC. Argus raised shares of Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Citigroup boosted their price objective on Omnicom Group from $103.00 to $115.00 and gave the company a "buy" rating in a report on Friday, February 20th. Weiss Ratings restated a "hold (c)" rating on shares of Omnicom Group in a research note on Thursday, January 22nd. Bank of America reaffirmed 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. Finally, Barclays lifted their target price on Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a research report on Monday, February 23rd. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $95.86.

Omnicom Group Trading Up 0.1%

Omnicom Group stock opened at $75.39 on Wednesday. Omnicom Group Inc. has a 1 year low of $66.33 and a 1 year high of $87.17. The firm's 50-day moving average is $77.02 and its 200-day moving average is $76.93. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.81 and a current ratio of 0.93. The company has a market cap of $21.48 billion, a P/E ratio of 153.85, a PEG ratio of 0.62 and a beta of 0.71.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $5.53 billion for the quarter, compared to the consensus estimate of $7.58 billion. Omnicom Group had a negative net margin of 0.32% and a positive return on equity of 25.65%. Omnicom Group's quarterly revenue was up 27.9% on a year-over-year basis. During the same period in the prior year, the company earned $2.41 EPS. On average, equities analysts expect that Omnicom Group Inc. will post 8.25 earnings per share for the current year.

Omnicom Group announced that its Board of Directors has initiated a stock repurchase program 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 reacquire up to 38.1% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its stock is undervalued.

Omnicom Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Wednesday, March 11th will be issued a dividend of $0.80 per share. The ex-dividend date of this dividend is Wednesday, March 11th. This represents a $3.20 annualized dividend and a dividend yield of 4.2%. Omnicom Group's dividend payout ratio is 653.06%.

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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