Omnicom Group Inc. $OMC Shares Bought by Kerusso Capital Management LLC

Key Points

• Kerusso Capital Management LLC boosted its stake in Omnicom by 149.1% in Q4 to 39,488 shares (about $3.19M), while institutional investors collectively own roughly 91.97% of the company.
• Omnicom's Board approved a $5.0 billion share buyback (authorizing repurchases of up to 38.1% of outstanding shares) and the company pays a quarterly dividend of $0.80 (annualized yield ~4.2%), though the reported payout ratio is unusually high.
• Recent results showed an EPS miss ($2.59 vs. $2.94 estimate) and revenue of $5.53B versus $7.58B expected, and analysts are mixed with an average rating of Hold and an average target price of $95.86.

Kerusso Capital Management LLC lifted its stake in Omnicom Group Inc. (NYSE:OMC - Free Report) by 149.1% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 39,488 shares of the business services provider's stock after acquiring an additional 23,634 shares during the period. Kerusso Capital Management LLC's holdings in Omnicom Group were worth $3,189,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in OMC. First Eagle Investment Management LLC bought a new stake in shares of Omnicom Group in the 3rd quarter worth approximately $515,145,000. Bank of New York Mellon Corp raised its holdings in shares of Omnicom Group by 73.6% in the 3rd quarter. Bank of New York Mellon Corp now owns 6,652,469 shares of the business services provider's stock worth $542,376,000 after purchasing an additional 2,820,553 shares in the last quarter. State Street Corp raised its holdings in shares of Omnicom Group by 15.8% in the 3rd quarter. State Street Corp now owns 16,863,327 shares of the business services provider's stock worth $1,384,980,000 after purchasing an additional 2,298,652 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in shares of Omnicom Group by 30.5% in the 3rd quarter. JPMorgan Chase & Co. now owns 8,107,021 shares of the business services provider's stock worth $660,969,000 after purchasing an additional 1,893,316 shares in the last quarter. Finally, Balyasny Asset Management L.P. raised its holdings in shares of Omnicom Group by 122.3% in the 3rd quarter. Balyasny Asset Management L.P. now owns 1,663,251 shares of the business services provider's stock worth $135,605,000 after purchasing an additional 914,885 shares in the last quarter. 91.97% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

OMC has been the topic of a number of research reports. UBS Group boosted their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a report on Friday, March 20th. Argus upgraded shares of Omnicom Group to a "hold" rating in a report on Thursday, March 26th. Barclays boosted their target price on shares of Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a report on Monday, February 23rd. Citigroup boosted their target price on shares of Omnicom Group from $103.00 to $115.00 and gave the stock a "buy" rating in a report on Friday, February 20th. Finally, Bank of America reiterated an "underperform" rating and issued a $77.00 target price (down from $87.00) on shares of Omnicom Group in a report on Monday, January 5th. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $95.86.

Omnicom Group Stock Down 1.7%

OMC stock opened at $76.76 on Friday. Omnicom Group Inc. has a 52-week low of $66.33 and a 52-week high of $87.17. The company's 50 day simple moving average is $77.89 and its 200-day simple moving average is $76.89. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.93 and a quick ratio of 0.81. The firm has a market capitalization of $21.88 billion, a P/E ratio of 156.65, a P/E/G ratio of 0.60 and a beta of 0.73.

Omnicom Group (NYSE:OMC - Get Free Report) last released its quarterly earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.94 by ($0.35). Omnicom Group had a negative net margin of 0.32% and a positive return on equity of 25.65%. The firm had revenue of $5.53 billion for the quarter, compared to analyst estimates of $7.58 billion. During the same quarter in the prior year, the firm earned $2.41 EPS. The firm's revenue was up 27.9% compared to the same quarter last year. As a group, equities research analysts anticipate that Omnicom Group Inc. will post 10.92 EPS for the current year.

Omnicom Group declared that its Board of Directors has approved a share buyback 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 repurchase up to 38.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Omnicom Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Wednesday, March 11th were given a dividend of $0.80 per share. The ex-dividend date of this dividend was Wednesday, March 11th. This represents a $3.20 dividend on an annualized basis and a yield of 4.2%. Omnicom Group's payout ratio is presently 653.06%.

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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