New Vernon Capital Holdings II LLC Grows Position in Omnicom Group Inc. $OMC

Key Points

• New Vernon Capital Holdings II LLC has significantly increased its stake in Omnicom Group by acquiring 189,622 shares, bringing its total ownership to approximately 0.10% of the company, valued at $15.9 million.
• Omnicom Group reported a quarterly earnings per share of $2.05, exceeding analysts' expectations by $0.03, with revenues of $4.02 billion, marking a year-over-year increase of 4.2%.
• The company announced a quarterly dividend of $0.70, resulting in an annualized yield of 3.6%, with the payment date set for October 10th.

New Vernon Capital Holdings II LLC boosted its stake in Omnicom Group Inc. (NYSE:OMC - Free Report) by 8,191.0% during the first quarter, according to its most recent 13F filing with the SEC. The firm owned 191,937 shares of the business services provider's stock after acquiring an additional 189,622 shares during the quarter. New Vernon Capital Holdings II LLC owned 0.10% of Omnicom Group worth $15,913,000 as of its most recent filing with the SEC.

Other hedge funds have also modified their holdings of the company. Merit Financial Group LLC boosted its position in Omnicom Group by 157.9% during the first quarter. Merit Financial Group LLC now owns 7,661 shares of the business services provider's stock worth $635,000 after acquiring an additional 4,690 shares during the last quarter. Golden State Wealth Management LLC boosted its holdings in shares of Omnicom Group by 230.2% during the 1st quarter. Golden State Wealth Management LLC now owns 492 shares of the business services provider's stock worth $41,000 after purchasing an additional 343 shares during the last quarter. Fifth Third Bancorp grew its position in shares of Omnicom Group by 13.9% in the first quarter. Fifth Third Bancorp now owns 7,459 shares of the business services provider's stock valued at $618,000 after purchasing an additional 913 shares in the last quarter. Oppenheimer & Co. Inc. acquired a new stake in shares of Omnicom Group in the 1st quarter worth $1,357,000. Finally, Asset Management One Co. Ltd. raised its holdings in shares of Omnicom Group by 10.4% during the 1st quarter. Asset Management One Co. Ltd. now owns 81,474 shares of the business services provider's stock worth $6,755,000 after acquiring an additional 7,665 shares during the period. 91.97% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts have recently commented on OMC shares. Wells Fargo & Company reduced their price target on Omnicom Group from $84.00 to $78.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 16th. Bank of America upgraded 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. JPMorgan Chase & Co. reduced their price target on Omnicom Group from $104.00 to $96.00 and set an "overweight" rating on the stock in a report on Thursday, July 10th. Finally, Barclays lowered Omnicom Group from an "overweight" rating to an "equal weight" rating and reduced their price target for the stock from $105.00 to $80.00 in a report on Wednesday, June 25th. Four investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $94.43.

Omnicom Group Trading Down 2.5%

OMC traded down $1.98 on Wednesday, hitting $75.75. The company had a trading volume of 1,561,957 shares, compared to its average volume of 3,609,418. The firm has a market cap of $14.67 billion, a P/E ratio of 10.87, a PEG ratio of 1.57 and a beta of 0.97. Omnicom Group Inc. has a 1 year low of $68.37 and a 1 year high of $107.00. The company's fifty day moving average price is $75.18 and its 200 day moving average price is $75.70. The company has a current ratio of 0.92, a quick ratio of 0.80 and a debt-to-equity ratio of 0.97.

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

Omnicom Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Tuesday, September 2nd will be given a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 3.7%. The ex-dividend date of this dividend is Tuesday, September 2nd. Omnicom Group's dividend payout ratio (DPR) is currently 40.17%.

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.