Omnicom Group Inc. $OMC Shares Bought by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon Corp boosted its Omnicom Group stake by 69.6% in the fourth quarter, ending with 11.28 million shares valued at about $911.2 million. The firm now owns 5.85% of the company.
• Omnicom recently reported strong quarterly results, with EPS of $1.90 beating estimates and revenue of $6.24 billion topping expectations. Revenue rose 69.2% from the same quarter a year earlier.
• The company also announced a quarterly dividend of $0.80 per share and a new $5 billion share buyback program. Analysts currently have a consensus rating of “Hold” with a $99 price target.

Bank of New York Mellon Corp grew its position in Omnicom Group Inc. (NYSE:OMC - Free Report) by 69.6% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 11,283,863 shares of the business services provider's stock after buying an additional 4,631,394 shares during the period. Bank of New York Mellon Corp owned 5.85% of Omnicom Group worth $911,172,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Oppenheimer Asset Management Inc. increased its position in shares of Omnicom Group by 15.3% during the third quarter. Oppenheimer Asset Management Inc. now owns 108,310 shares of the business services provider's stock valued at $8,831,000 after acquiring an additional 14,368 shares during the last quarter. AustralianSuper Pty Ltd raised its stake in shares of Omnicom Group by 24.2% in the 3rd quarter. AustralianSuper Pty Ltd now owns 129,755 shares of the business services provider's stock valued at $10,579,000 after acquiring an additional 25,317 shares during the period. National Pension Service lifted its holdings in shares of Omnicom Group by 35.3% in the 3rd quarter. National Pension Service now owns 111,161 shares of the business services provider's stock worth $9,063,000 after acquiring an additional 29,014 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in shares of Omnicom Group by 3.7% in the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 396,400 shares of the business services provider's stock worth $32,318,000 after acquiring an additional 14,155 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC boosted its position in shares of Omnicom Group by 155.3% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 91,116 shares of the business services provider's stock worth $7,265,000 after purchasing an additional 55,421 shares during the period. Institutional investors and hedge funds own 91.97% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have issued reports on OMC shares. The Goldman Sachs Group began coverage on Omnicom Group in a research report on Wednesday. They issued a "buy" rating and a $146.00 target price on the stock. Barclays raised 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. Weiss Ratings reiterated a "hold (c-)" rating on shares of Omnicom Group in a report on Friday, May 22nd. Rothschild & Co Redburn initiated coverage on Omnicom Group in a research note on Thursday, May 28th. They set a "neutral" rating and a $89.00 target price on the stock. Finally, Argus upgraded Omnicom Group to a "hold" rating in a report on Thursday, March 26th. Five equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $99.00.

Omnicom Group Stock Performance

Shares of OMC stock opened at $73.67 on Thursday. The firm has a 50 day moving average of $75.45 and a two-hundred day moving average of $76.55. The stock has a market capitalization of $21.00 billion, a PE ratio of 188.91, a P/E/G ratio of 0.45 and a beta of 0.63. 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.

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 (EPS) for the quarter, beating the consensus estimate of $1.84 by $0.06. Omnicom Group had a return on equity of 24.48% and a net margin of 0.32%.The business had revenue of $6.24 billion for the quarter, compared to analysts' expectations of $5.85 billion. During the same period last 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, research analysts predict that Omnicom Group Inc. will post 10.97 EPS for the current fiscal year.

Omnicom Group Dividend Announcement

The company 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 dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 4.3%. The ex-dividend date is Wednesday, June 10th. Omnicom Group's payout ratio is 820.51%.

Omnicom Group announced that its Board of Directors has authorized a share buyback plan on Wednesday, February 18th that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the business services provider to repurchase up to 38.1% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its shares are 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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