Vanguard Group Inc. Raises Stock Holdings in Omnicom Group Inc. (NYSE:OMC)

Key Points

• Vanguard Group Inc. has increased its stake in Omnicom Group Inc. by 1.8%, now owning 23,466,754 shares valued at approximately $1.95 billion.
• Omnicom Group reported earnings of $2.05 per share, exceeding analysts' estimates, with a quarterly revenue of $4.02 billion, marking a 4.2% increase year-over-year.
• The company announced a quarterly dividend of $0.70 per share, which translates to an annualized dividend yield of 3.8%.

Vanguard Group Inc. increased its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 1.8% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 23,466,754 shares of the business services provider's stock after purchasing an additional 424,936 shares during the period. Vanguard Group Inc. owned approximately 12.03% of Omnicom Group worth $1,945,629,000 at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of the business. Twin City Private Wealth LLC increased its position in shares of Omnicom Group by 11.5% during the 1st quarter. Twin City Private Wealth LLC now owns 21,750 shares of the business services provider's stock valued at $1,817,000 after purchasing an additional 2,240 shares during the last quarter. Leisure Capital Management increased its position in shares of Omnicom Group by 43.7% during the 1st quarter. Leisure Capital Management now owns 9,220 shares of the business services provider's stock valued at $764,000 after purchasing an additional 2,802 shares during the last quarter. iA Global Asset Management Inc. bought a new position in shares of Omnicom Group during the 1st quarter valued at approximately $1,300,000. IQ EQ FUND MANAGEMENT IRELAND Ltd bought a new position in shares of Omnicom Group during the 1st quarter valued at approximately $239,000. Finally, Heritage Trust Co bought a new position in shares of Omnicom Group during the 1st quarter valued at approximately $529,000. Institutional investors own 91.97% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on OMC. Barclays downgraded Omnicom Group from an "overweight" rating to an "equal weight" rating and cut their target price for the company from $105.00 to $80.00 in a research report on Wednesday, June 25th. Bank of America upgraded Omnicom Group from an "underperform" rating to a "neutral" rating and set a $80.00 price objective for the company in a report on Monday, June 23rd. JPMorgan Chase & Co. dropped their price objective on Omnicom Group from $104.00 to $96.00 and set an "overweight" rating for the company in a report on Thursday, July 10th. Finally, Wells Fargo & Company dropped their price objective on Omnicom Group from $84.00 to $78.00 and set an "equal weight" rating for the company in a report on Wednesday, July 16th. Four investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company's stock. According to MarketBeat, Omnicom Group has a consensus rating of "Moderate Buy" and an average target price of $94.43.

Omnicom Group Stock Down 1.4%

Shares of OMC stock traded down $1.07 during mid-day trading on Thursday, hitting $75.40. The stock had a trading volume of 745,403 shares, compared to its average volume of 3,653,788. Omnicom Group Inc. has a 12-month low of $68.37 and a 12-month high of $107.00. The firm has a market capitalization of $14.61 billion, a P/E ratio of 10.82, a price-to-earnings-growth ratio of 1.46 and a beta of 0.94. The firm's 50-day moving average is $72.64 and its two-hundred day moving average is $76.62. The company has a debt-to-equity ratio of 0.97, a current ratio of 0.92 and a quick ratio of 0.80.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its earnings results on Tuesday, July 15th. The business services provider reported $2.05 earnings per share for the quarter, topping the consensus estimate of $2.02 by $0.03. Omnicom Group had a return on equity of 33.62% and a net margin of 8.67%. The business had revenue of $4.02 billion during the quarter, compared to analysts' expectations of $3.95 billion. During the same period in the prior year, the business earned $1.95 EPS. The business's revenue for the quarter was up 4.2% compared to the same quarter last year. On average, analysts predict that Omnicom Group Inc. will post 8.25 earnings per share for the current fiscal year.

Omnicom Group Announces Dividend

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

Omnicom Group Profile

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.