Omnicom Group Inc. $OMC Shares Acquired by First Eagle Investment Management LLC

Key Points

• First Eagle Investment Management increased its stake in Omnicom Group by 0.5% in the fourth quarter, bringing its holdings to 6.35 million shares valued at about $512.9 million.
• Omnicom reported better-than-expected quarterly results, with earnings of $1.90 per share versus $1.84 expected and revenue of $6.24 billion versus $5.85 billion forecast.
• The company approved a $5 billion share repurchase plan and also declared a quarterly dividend of $0.80 per share, implying a 4.3% annualized yield.

First Eagle Investment Management LLC raised its holdings in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 0.5% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 6,352,034 shares of the business services provider's stock after purchasing an additional 33,557 shares during the period. First Eagle Investment Management LLC owned 3.29% of Omnicom Group worth $512,927,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in the business. AG2R LA Mondiale Gestion D Actifs acquired a new position in shares of Omnicom Group during the fourth quarter worth $1,180,000. Valeo Financial Advisors LLC acquired a new position in shares of Omnicom Group during the fourth quarter worth $209,000. Swiss Life Asset Management Ltd increased its position in shares of Omnicom Group by 901.4% during the fourth quarter. Swiss Life Asset Management Ltd now owns 481,765 shares of the business services provider's stock worth $38,903,000 after purchasing an additional 433,654 shares in the last quarter. Pure Financial Advisors LLC increased its position in shares of Omnicom Group by 8.2% during the fourth quarter. Pure Financial Advisors LLC now owns 4,570 shares of the business services provider's stock worth $369,000 after purchasing an additional 346 shares in the last quarter. Finally, Bryn Mawr Trust Advisors LLC increased its position in shares of Omnicom Group by 3.7% during the fourth quarter. Bryn Mawr Trust Advisors LLC now owns 6,285 shares of the business services provider's stock worth $507,000 after purchasing an additional 227 shares in the last quarter. 91.97% of the stock is owned by institutional investors and hedge funds.

Omnicom Group Price Performance

Shares of OMC opened at $75.18 on Tuesday. The firm has a market capitalization of $21.43 billion, a PE ratio of 192.78, a price-to-earnings-growth ratio of 0.46 and a beta of 0.66. 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 Inc. has a 1-year low of $66.33 and a 1-year high of $87.17. The company's fifty day moving average price is $77.77 and its 200-day moving average price is $76.75.

Omnicom Group (NYSE:OMC - Get Free Report) last announced 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 firm 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 business's quarterly revenue was up 69.2% compared to the same quarter last year. During the same period in the previous year, the company earned $1.70 earnings per share. On average, equities research analysts predict that Omnicom Group Inc. will post 10.97 EPS for the current year.

Omnicom Group announced that its board has approved a stock repurchase 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 shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Omnicom Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Wednesday, June 10th will be issued a dividend of $0.80 per share. The ex-dividend date of this dividend is Wednesday, June 10th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.3%. Omnicom Group's payout ratio is 820.51%.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. UBS Group upped their price target on Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Citigroup reduced their price target on Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Barclays upped their price target on Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a research report on Monday, February 23rd. Argus raised Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Finally, Morgan Stanley boosted their price objective on shares of Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a report on Friday, May 1st. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Omnicom Group presently has a consensus rating of "Hold" and an average target price of $93.71.

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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