Norges Bank Takes Position in Omnicom Group Inc. $OMC

Key Points

• Norges Bank took a new position in Omnicom Group, buying 1,737,069 shares in the fourth quarter valued at about $140.3 million, giving it 0.90% ownership of the company.
• Wall Street sentiment is mixed on OMC: analysts currently have an overall Hold rating, with a consensus price target of $99 after several firms updated their views and targets.
• Omnicom reported better-than-expected quarterly results, posting $1.90 EPS on $6.24 billion in revenue, while also paying a $0.80 quarterly dividend and authorizing a $5 billion share buyback.

Norges Bank acquired a new stake in Omnicom Group Inc. (NYSE:OMC - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 1,737,069 shares of the business services provider's stock, valued at approximately $140,268,000. Norges Bank owned 0.90% of Omnicom Group at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. EverSource Wealth Advisors LLC increased its holdings 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 during the last quarter. Gamco Investors INC. ET AL purchased a new stake in shares of Omnicom Group during the 2nd quarter valued at approximately $241,000. Gabelli Funds LLC acquired a new position in Omnicom Group in the second quarter valued at approximately $1,061,000. Daiwa Securities Group Inc. grew its position in Omnicom Group by 5.3% in the second quarter. Daiwa Securities Group Inc. now owns 29,373 shares of the business services provider's stock worth $2,113,000 after acquiring an additional 1,482 shares during the period. Finally, Sei Investments Co. grew its position in Omnicom Group by 14.1% in the second quarter. Sei Investments Co. now owns 361,266 shares of the business services provider's stock worth $25,990,000 after acquiring an additional 44,746 shares during the period. 91.97% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have commented on OMC. Argus upgraded Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. UBS Group increased their price target on Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a report on Friday, March 20th. Weiss Ratings reissued a "hold (c-)" rating on shares of Omnicom Group in a research report on Friday, May 22nd. Rothschild & Co Redburn began coverage on shares of Omnicom Group in a report on Thursday, May 28th. They issued a "neutral" rating and a $89.00 price objective on the stock. Finally, Barclays upped their target price on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research report on Monday, February 23rd. Five analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $99.00.

Omnicom Group Stock Up 2.5%

NYSE:OMC opened at $75.62 on Friday. The company has a quick ratio of 0.77, a current ratio of 0.91 and a debt-to-equity ratio of 0.99. The stock's fifty day moving average is $75.46 and its two-hundred day moving average is $76.57. Omnicom Group Inc. has a 52 week low of $66.33 and a 52 week high of $87.17. The stock has a market capitalization of $21.55 billion, a price-to-earnings ratio of 193.90, a price-to-earnings-growth ratio of 0.44 and a beta of 0.63.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The business services provider reported $1.90 earnings per share for the quarter, beating analysts' consensus estimates of $1.84 by $0.06. The business 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%.The company's revenue was up 69.2% on a year-over-year basis. During the same period in the previous year, the firm posted $1.70 earnings per share. Research analysts anticipate that Omnicom Group Inc. will post 10.97 EPS for the current year.

Omnicom Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Wednesday, June 10th will be given a $0.80 dividend. 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%.

Omnicom Group announced that its Board of Directors has initiated a stock buyback program on Wednesday, February 18th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the business services provider to buy up to 38.1% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board believes its shares are undervalued.

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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