New York Life Investment Management LLC Boosts Holdings in Omnicom Group Inc. $OMC

Key Points

• New York Life Investment Management boosted its Omnicom Group stake by 65.2% in the fourth quarter, buying 17,196 additional shares and bringing its total to 43,564 shares worth about $3.52 million.
• Omnicom’s latest earnings beat expectations, with quarterly EPS of $1.90 versus the $1.84 consensus and revenue of $6.24 billion topping estimates. Revenue also rose sharply year over year, while analysts now expect full-year EPS of 10.97.
• The company announced a $5 billion share repurchase program and a quarterly dividend of $0.80 per share, equal to a 4.5% annualized yield. Analyst sentiment remains mixed, with a consensus rating of Hold and an average price target of $93.71.

New York Life Investment Management LLC raised its holdings in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 65.2% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 43,564 shares of the business services provider's stock after acquiring an additional 17,196 shares during the quarter. New York Life Investment Management LLC's holdings in Omnicom Group were worth $3,518,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in OMC. Activest Wealth Management increased its holdings in 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 acquiring an additional 296 shares in the last quarter. Bayforest Capital Ltd purchased a new position in Omnicom Group during the 4th quarter valued at about $26,000. Cornerstone Planning Group LLC increased its holdings in 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. Legacy Wealth Managment LLC ID increased its holdings in 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. Finally, Westside Investment Management Inc. increased its holdings in Omnicom Group by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 404 shares of the business services provider's stock valued at $31,000 after acquiring an additional 202 shares in the last quarter. 91.97% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts have weighed in on the stock. Weiss Ratings restated a "hold (c)" rating on shares of Omnicom Group in a report on Thursday, January 22nd. Barclays lifted their price target on shares of Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a report on Monday, February 23rd. Morgan Stanley lifted their price target on shares of Omnicom Group from $82.00 to $83.00 and gave the stock an "equal weight" rating in a report on Friday, May 1st. Argus upgraded shares of Omnicom Group to a "hold" rating in a report on Thursday, March 26th. Finally, Citigroup lowered their price target on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating for the company in a report on Thursday, April 30th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Omnicom Group has an average rating of "Hold" and a consensus price target of $93.71.

Omnicom Group Stock Performance

Shares of NYSE OMC opened at $70.89 on Monday. The company has a market cap of $20.20 billion, a PE ratio of 181.78, a price-to-earnings-growth ratio of 0.42 and a beta of 0.66. 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 company has a 50-day simple moving average of $76.81 and a 200-day simple moving average of $76.56.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its quarterly earnings results 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 business had revenue of $6.24 billion during the quarter, compared to the consensus estimate of $5.85 billion. During the same period in the previous year, the firm posted $1.70 earnings per share. The company's quarterly revenue was up 69.2% compared to the same quarter last year. On average, equities analysts anticipate that Omnicom Group Inc. will post 10.97 earnings per share for the current year.

Omnicom Group announced that its board has initiated a share repurchase plan on Wednesday, February 18th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the business services provider to repurchase up to 38.1% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Omnicom Group Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Wednesday, June 10th will be issued a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a yield of 4.5%. The ex-dividend date is Wednesday, June 10th. Omnicom Group's 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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