Mitsubishi UFJ Trust & Banking Corp Sells 173,057 Shares of Omnicom Group Inc. $OMC

Key Points

• Mitsubishi UFJ Trust & Banking Corp reduced its stake in Omnicom by 52.4%, selling 173,057 shares and now holding 157,008 shares worth about $12.68 million (≈0.08% of the company).
• Omnicom beat quarterly estimates with $1.90 EPS (vs. $1.84) and $6.24B revenue (vs. $5.85B), reported 69.2% YoY revenue growth, and its board authorized a $5.0 billion share repurchase while paying a $0.80 quarterly dividend (≈4.2% yield).
• Analysts are mixed: consensus rating is Hold with a $93.71 price target, while the stock trades near $77 with a market cap of $21.95 billion and a high trailing P/E (~197.5).

Mitsubishi UFJ Trust & Banking Corp lowered its position in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 52.4% during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 157,008 shares of the business services provider's stock after selling 173,057 shares during the quarter. Mitsubishi UFJ Trust & Banking Corp owned 0.08% of Omnicom Group worth $12,678,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently modified their holdings of OMC. EverSource Wealth Advisors LLC lifted its position in shares of Omnicom Group by 82.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,917 shares of the business services provider's stock worth $138,000 after buying an additional 869 shares in the last quarter. Gamco Investors INC. ET AL bought a new position in shares of Omnicom Group during the 2nd quarter worth approximately $241,000. Gabelli Funds LLC bought a new position in shares of Omnicom Group during the 2nd quarter worth approximately $1,061,000. Daiwa Securities Group Inc. lifted its position in shares of Omnicom Group by 5.3% during the 2nd quarter. Daiwa Securities Group Inc. now owns 29,373 shares of the business services provider's stock worth $2,113,000 after buying an additional 1,482 shares in the last quarter. Finally, Sei Investments Co. lifted its position in shares of Omnicom Group by 14.1% during the 2nd quarter. Sei Investments Co. now owns 361,266 shares of the business services provider's stock worth $25,990,000 after buying an additional 44,746 shares in the last quarter. Institutional investors own 91.97% of the company's stock.

Analyst Ratings Changes

Several equities analysts have commented on OMC shares. Bank of America reissued an "underperform" rating and set a $77.00 target price (down from $87.00) on shares of Omnicom Group in a research report on Monday, January 5th. Argus raised shares of Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Citigroup dropped their target price on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research report on Thursday. UBS Group raised their price target on shares of Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research note on Friday, March 20th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a report on Thursday, January 22nd. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Omnicom Group currently has a consensus rating of "Hold" and a consensus price target of $93.71.

Omnicom Group Price Performance

Omnicom Group stock opened at $77.02 on Friday. Omnicom Group Inc. has a 12 month low of $66.33 and a 12 month high of $87.17. The company has a current ratio of 0.91, a quick ratio of 0.81 and a debt-to-equity ratio of 0.99. The business's 50 day simple moving average is $78.37 and its 200 day simple moving average is $76.81. The company has a market cap of $21.95 billion, a price-to-earnings ratio of 197.49, a PEG ratio of 0.59 and a beta of 0.66.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The business services provider reported $1.90 EPS for the quarter, beating the consensus estimate of $1.84 by $0.06. Omnicom Group had a return on equity of 24.48% and a net margin of 0.32%.The business had revenue of $6.24 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same quarter in the prior year, the business earned $1.70 earnings per share. Omnicom Group's revenue for the quarter was up 69.2% on a year-over-year basis. Sell-side analysts forecast that Omnicom Group Inc. will post 10.92 EPS for the current year.

Omnicom Group declared that its board has authorized a share repurchase plan on Wednesday, February 18th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the business services provider to purchase up to 38.1% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's management believes its shares are undervalued.

Omnicom Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Wednesday, March 11th were paid a $0.80 dividend. The ex-dividend date was Wednesday, March 11th. This represents a $3.20 annualized dividend and a yield of 4.2%. Omnicom Group's dividend 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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