Omnicom Group Inc. $OMC Shares Acquired by ProShare Advisors LLC

Key Points

• ProShare Advisors LLC increased its Omnicom Group stake by 59.4% in the fourth quarter, holding 70,997 shares worth about $5.73 million at quarter-end.
• Omnicom reported better-than-expected quarterly results, with EPS of $1.90 versus $1.84 expected and revenue of $6.24 billion versus $5.85 billion estimated.
• The company announced a quarterly dividend of $0.80 per share and a new $5 billion share repurchase program, while analysts currently rate the stock a consensus “Hold” with a $93.71 target price.

ProShare Advisors LLC grew its position in Omnicom Group Inc. (NYSE:OMC - Free Report) by 59.4% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 70,997 shares of the business services provider's stock after purchasing an additional 26,470 shares during the period. ProShare Advisors LLC's holdings in Omnicom Group were worth $5,733,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the company. HighTower Advisors LLC increased its holdings in shares of Omnicom Group by 11.7% in the fourth quarter. HighTower Advisors LLC now owns 272,909 shares of the business services provider's stock valued at $22,037,000 after purchasing an additional 28,490 shares during the period. Envestnet Portfolio Solutions Inc. increased its holdings in shares of Omnicom Group by 82.0% in the fourth quarter. Envestnet Portfolio Solutions Inc. now owns 19,347 shares of the business services provider's stock valued at $1,562,000 after purchasing an additional 8,716 shares during the period. Intrua Financial LLC increased its holdings in shares of Omnicom Group by 49.8% in the fourth quarter. Intrua Financial LLC now owns 16,036 shares of the business services provider's stock valued at $1,295,000 after purchasing an additional 5,332 shares during the period. Mission Wealth Management LP acquired a new position in shares of Omnicom Group in the fourth quarter valued at about $215,000. Finally, Gamco Investors INC. ET AL increased its holdings in shares of Omnicom Group by 6,819.3% in the fourth quarter. Gamco Investors INC. ET AL now owns 214,222 shares of the business services provider's stock valued at $17,298,000 after purchasing an additional 211,126 shares during the period. 91.97% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

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

Omnicom Group Stock Up 1.6%

Omnicom Group stock opened at $74.95 on Friday. The firm has a market cap of $21.36 billion, a price-to-earnings ratio of 192.19, a price-to-earnings-growth ratio of 0.45 and a beta of 0.66. Omnicom Group Inc. has a 52 week low of $66.33 and a 52 week high of $87.17. The business's 50-day moving average price is $75.83 and its 200 day moving average price is $76.47. 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 (NYSE:OMC - Get Free Report) last posted its earnings results on Wednesday, April 29th. The business services provider reported $1.90 EPS for the quarter, topping the consensus estimate 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 return on equity of 24.48% and a net margin of 0.32%.Omnicom Group's revenue for the quarter was up 69.2% compared to the same quarter last year. During the same period last year, the company earned $1.70 earnings per share. As a group, sell-side analysts anticipate that Omnicom Group Inc. will post 10.97 earnings per share for the current year.

Omnicom Group Announces Dividend

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

Omnicom Group declared that its Board of Directors has initiated a share repurchase 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 reacquire up to 38.1% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

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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