Omnicom Group Inc. $OMC Shares Acquired by AustralianSuper Pty Ltd

Key Points

• AustralianSuper Pty Ltd increased its Omnicom Group stake by 34.9% in the fourth quarter, adding 45,306 shares to bring its total to 175,061 shares valued at about $14.1 million.
• Wall Street sentiment on Omnicom is mixed: analysts have a consensus “Hold” rating, with a consensus price target of $93.71 after recent target increases from firms like Barclays, Morgan Stanley, and UBS.
• Omnicom reported better-than-expected quarterly results, including EPS of $1.90 versus $1.84 expected and revenue of $6.24 billion, and it also announced a $0.80 quarterly dividend plus a $5 billion share repurchase plan.

AustralianSuper Pty Ltd grew its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 34.9% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 175,061 shares of the business services provider's stock after buying an additional 45,306 shares during the quarter. AustralianSuper Pty Ltd owned about 0.09% of Omnicom Group worth $14,136,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of OMC. Activest Wealth Management boosted its position in shares of Omnicom Group by 2,960.0% during the 4th quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock worth $25,000 after purchasing an additional 296 shares in the last quarter. Bayforest Capital Ltd purchased a new stake in shares of Omnicom Group during the 4th quarter worth $26,000. Cornerstone Planning Group LLC boosted its position in shares of 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 worth $27,000 after purchasing an additional 319 shares in the last quarter. Legacy Wealth Managment LLC ID boosted its position in shares of 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 worth $27,000 after purchasing an additional 176 shares in the last quarter. Finally, Westside Investment Management Inc. boosted its position in shares of Omnicom Group by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 404 shares of the business services provider's stock worth $31,000 after purchasing an additional 202 shares in the last quarter. 91.97% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages have weighed in on OMC. Barclays upped their target price on shares of Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a research report on Monday, February 23rd. Weiss Ratings restated a "hold (c)" rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Morgan Stanley upped their target price on shares of Omnicom Group from $82.00 to $83.00 and gave the stock an "equal weight" rating in a research report on Friday, May 1st. Argus raised Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Finally, UBS Group raised their price objective on Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $93.71.

Omnicom Group Trading Down 1.0%

NYSE:OMC opened at $70.89 on Friday. The company has a market capitalization of $20.20 billion, a PE ratio of 181.78, a price-to-earnings-growth ratio of 0.43 and a beta of 0.66. The company has a quick ratio of 0.77, a current ratio of 0.91 and a debt-to-equity ratio of 0.99. Omnicom Group Inc. has a 52-week low of $66.33 and a 52-week high of $87.17. The stock has a fifty day simple moving average of $76.81 and a 200-day simple moving average of $76.58.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The business services provider reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.84 by $0.06. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The company had revenue of $6.24 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same quarter in the prior year, the firm earned $1.70 earnings per share. The company's revenue for the quarter was up 69.2% compared to the same quarter last year. On average, equities research analysts expect that Omnicom Group Inc. will post 10.97 earnings per share for the current fiscal year.

Omnicom Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Wednesday, June 10th will be issued a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 4.5%. The ex-dividend date of this dividend is Wednesday, June 10th. Omnicom Group's dividend payout ratio is 820.51%.

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

Omnicom Group 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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