Northwestern Mutual Wealth Management Co. Purchases 27,410 Shares of Omnicom Group Inc. $OMC

Key Points

• Northwestern Mutual Wealth Management boosted its Omnicom Group stake by 553.3% in Q4, buying 27,410 additional shares and bringing its total holdings to 32,364 shares worth about $2.6 million.
• Omnicom reported better-than-expected quarterly results, with EPS of $1.90 versus the $1.84 consensus and revenue of $6.24 billion versus estimates of $5.85 billion.
• The company announced a $5 billion stock buyback and a quarterly dividend of $0.80 per share, while analysts currently rate the stock a consensus Hold with an average price target of $93.71.

Northwestern Mutual Wealth Management Co. raised its stake in Omnicom Group Inc. (NYSE:OMC - Free Report) by 553.3% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 32,364 shares of the business services provider's stock after acquiring an additional 27,410 shares during the quarter. Northwestern Mutual Wealth Management Co.'s holdings in Omnicom Group were worth $2,613,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Activest Wealth Management increased its position in Omnicom Group by 2,960.0% in 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 acquired a new stake in Omnicom Group in the 4th quarter valued at about $26,000. Cornerstone Planning Group LLC increased its position in Omnicom Group by 2,126.7% in 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 position in Omnicom Group by 111.4% in 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 position in Omnicom Group by 100.0% in 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. Institutional investors and hedge funds own 91.97% of the company's stock.

Omnicom Group Price Performance

Shares of OMC opened at $74.95 on Tuesday. The firm has a market capitalization of $21.36 billion, a PE ratio of 192.19, a PEG ratio of 0.45 and a beta of 0.66. The company's 50-day moving average is $75.78 and its 200-day moving average is $76.50. Omnicom Group Inc. has a fifty-two week low of $66.33 and a fifty-two week 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.

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 the consensus estimate of $1.84 by $0.06. The company had revenue of $6.24 billion for the quarter, compared to analyst estimates of $5.85 billion. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The company's revenue was up 69.2% on a year-over-year basis. During the same period in the prior year, the firm earned $1.70 earnings per share. Equities analysts forecast that Omnicom Group Inc. will post 10.97 EPS for the current year.

Omnicom Group declared that its board has approved a stock buyback plan on Wednesday, February 18th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the business services provider to repurchase up to 38.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Omnicom Group Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Wednesday, June 10th will be paid a $0.80 dividend. The ex-dividend date is Wednesday, June 10th. This represents a $3.20 annualized dividend and a dividend yield of 4.3%. Omnicom Group's dividend payout ratio is 820.51%.

Wall Street Analyst Weigh In

Several research firms have weighed in on OMC. Morgan Stanley raised their price objective on shares of Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a research report on Friday, May 1st. UBS Group lifted their price target on shares of Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Barclays lifted their price objective on shares of Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a research note on Monday, February 23rd. Citigroup cut their price target on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research note on Thursday, April 30th. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Omnicom Group in a report on Friday. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $93.71.

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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