MUFG Securities EMEA plc Acquires 25,569 Shares of Omnicom Group Inc. $OMC

Key Points

• MUFG Securities EMEA plc significantly increased its Omnicom Group stake in Q4, boosting holdings by 689.6% to 29,277 shares worth about $2.36 million.
• Omnicom reported stronger-than-expected quarterly results, with EPS of $1.90 versus $1.84 expected and revenue of $6.24 billion versus $5.85 billion expected.
• The company also announced a $5 billion share buyback and a quarterly dividend of $0.80 per share, yielding about 4.2%, while analysts currently rate the stock a consensus Hold.

MUFG Securities EMEA plc raised its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 689.6% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 29,277 shares of the business services provider's stock after buying an additional 25,569 shares during the quarter. MUFG Securities EMEA plc's holdings in Omnicom Group were worth $2,364,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in OMC. Vanguard Group Inc. boosted its position in shares of Omnicom Group by 64.2% during the fourth quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider's stock valued at $3,143,930,000 after purchasing an additional 15,220,444 shares in the last quarter. First Eagle Investment Management LLC purchased a new position in Omnicom Group during the third quarter valued at $515,145,000. Geode Capital Management LLC raised its stake in Omnicom Group by 57.1% during the fourth quarter. Geode Capital Management LLC now owns 8,578,075 shares of the business services provider's stock valued at $690,327,000 after buying an additional 3,117,188 shares during the last quarter. State Street Corp raised its stake in Omnicom Group by 15.8% during the third quarter. State Street Corp now owns 16,863,327 shares of the business services provider's stock valued at $1,384,980,000 after buying an additional 2,298,652 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its stake in Omnicom Group by 30.5% during the third quarter. JPMorgan Chase & Co. now owns 8,107,021 shares of the business services provider's stock valued at $660,969,000 after buying an additional 1,893,316 shares during the last quarter. 91.97% of the stock is currently owned by institutional investors.

Omnicom Group Stock Up 4.7%

Omnicom Group stock opened at $76.15 on Tuesday. The stock has a market cap of $21.70 billion, a PE ratio of 195.27, a price-to-earnings-growth ratio of 0.44 and a beta of 0.64. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.77 and a current ratio of 0.91. Omnicom Group Inc. has a one year low of $66.33 and a one year high of $87.17. The stock has a fifty day moving average of $75.49 and a 200 day moving average of $76.54.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The business services provider reported $1.90 EPS for the quarter, beating analysts' consensus estimates of $1.84 by $0.06. The company had revenue of $6.24 billion during the quarter, compared to analysts' expectations of $5.85 billion. Omnicom Group had a return on equity of 24.48% and a net margin of 0.32%.Omnicom Group's revenue for the quarter was up 69.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.70 earnings per share. As a group, sell-side analysts predict that Omnicom Group Inc. will post 10.97 EPS for the current year.

Omnicom Group announced that its board has initiated a stock buyback plan on Wednesday, February 18th that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the business services provider to buy 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 declared a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Wednesday, June 10th will be issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 4.2%. The ex-dividend date of this dividend is Wednesday, June 10th. Omnicom Group's payout ratio is currently 820.51%.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on OMC. UBS Group lifted their price objective on Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Morgan Stanley lifted their price objective on Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a research note on Friday, May 1st. Rothschild & Co Redburn initiated coverage on Omnicom Group in a research note on Thursday, May 28th. They issued a "neutral" rating and a $89.00 price target for the company. Argus upgraded Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Omnicom Group in a research note on Friday, May 22nd. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $93.13.

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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