National Pension Service Increases Stock Position in Omnicom Group Inc. $OMC

Key Points

• National Pension Service boosted its Omnicom Group stake by 527.2% in the fourth quarter, ending with 697,249 shares valued at about $56.3 million.
• Omnicom reported better-than-expected quarterly results, with EPS of $1.90 versus $1.84 estimated and revenue of $6.24 billion versus $5.85 billion expected.
• The company approved a $5 billion share repurchase program and declared a quarterly dividend of $0.80 per share, equal to a 4.4% annualized yield.

National Pension Service grew its stake in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 527.2% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 697,249 shares of the business services provider's stock after buying an additional 586,088 shares during the period. National Pension Service owned 0.36% of Omnicom Group worth $56,303,000 as of its most recent SEC filing.

Several other institutional investors also recently made changes to their positions in OMC. Activest Wealth Management grew its stake in shares of Omnicom Group by 2,960.0% during the 4th quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock valued at $25,000 after buying an additional 296 shares during the period. Bayforest Capital Ltd acquired a new position in shares of Omnicom Group during the 4th quarter valued at $26,000. Elyxium Wealth LLC acquired a new position in shares of Omnicom Group during the 4th quarter valued at $26,000. Cornerstone Planning Group LLC lifted its holdings in shares of Omnicom Group by 2,126.7% during the 3rd quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock valued at $27,000 after acquiring an additional 319 shares in the last quarter. Finally, Legacy Wealth Managment LLC ID lifted its holdings in shares of Omnicom Group by 111.4% during the 4th quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider's stock valued at $27,000 after acquiring an additional 176 shares in the last quarter. 91.97% of the stock is owned by hedge funds and other institutional investors.

Omnicom Group Stock Performance

Shares of OMC stock opened at $72.82 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 debt-to-equity ratio of 0.99, a current ratio of 0.91 and a quick ratio of 0.77. The firm has a market capitalization of $20.75 billion, a P/E ratio of 186.72, a P/E/G ratio of 0.44 and a beta of 0.66. The company's fifty day moving average price is $75.48 and its two-hundred day moving average price is $76.50.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its quarterly earnings data 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. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The firm had revenue of $6.24 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same quarter in the previous year, the business posted $1.70 EPS. The firm's revenue was up 69.2% compared to the same quarter last year. On average, research analysts anticipate 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 repurchase program on Wednesday, February 18th that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the business services provider to buy up to 38.1% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Omnicom Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Wednesday, June 10th will be issued a $0.80 dividend. The ex-dividend date is Wednesday, June 10th. This represents a $3.20 dividend on an annualized basis and a yield of 4.4%. Omnicom Group's payout ratio is currently 820.51%.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. Weiss Ratings restated a "hold (c-)" rating on shares of Omnicom Group in a report on Friday, May 22nd. Barclays lifted their target price on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a report on Monday, February 23rd. UBS Group lifted their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a report on Friday, March 20th. Citigroup reduced their target price on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. Finally, Rothschild & Co Redburn assumed coverage on shares of Omnicom Group in a report on Thursday. They set a "neutral" rating and a $89.00 target price on the stock. Four investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $93.13.

About Omnicom Group

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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