Omnicom Group Inc. $OMC Shares Bought by Patriot Financial Group Insurance Agency LLC

Key Points

• Patriot Financial Group Insurance Agency LLC boosted its stake in Omnicom by 89.8% in Q4, buying 16,497 shares to hold 34,860 shares valued at about $2.82 million.
• Omnicom's Board approved a $5.0 billion share repurchase program (up to 38.1% of shares) and the company pays a $0.80 quarterly dividend (annualized $3.20, ~4.1% yield).
• Omnicom missed Q4 estimates—EPS $2.59 vs. $2.94 expected and revenue $5.53B vs. $7.58B expected—resulting in mixed fundamentals despite a high P/E (~160) and ~92% institutional ownership.

Patriot Financial Group Insurance Agency LLC grew its holdings in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 89.8% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 34,860 shares of the business services provider's stock after purchasing an additional 16,497 shares during the period. Patriot Financial Group Insurance Agency LLC's holdings in Omnicom Group were worth $2,815,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of OMC. EverSource Wealth Advisors LLC boosted its stake in Omnicom Group by 82.9% during the second quarter. EverSource Wealth Advisors LLC now owns 1,917 shares of the business services provider's stock valued at $138,000 after buying an additional 869 shares in the last quarter. Gamco Investors INC. ET AL bought a new position in Omnicom Group during the second quarter valued at about $241,000. Gabelli Funds LLC bought a new position in Omnicom Group during the second quarter valued at about $1,061,000. Daiwa Securities Group Inc. boosted its stake in Omnicom Group by 5.3% during the second quarter. Daiwa Securities Group Inc. now owns 29,373 shares of the business services provider's stock valued at $2,113,000 after buying an additional 1,482 shares in the last quarter. Finally, Sei Investments Co. boosted its stake in Omnicom Group by 14.1% during the second quarter. Sei Investments Co. now owns 361,266 shares of the business services provider's stock valued at $25,990,000 after buying an additional 44,746 shares in the last quarter. Institutional investors own 91.97% of the company's stock.

Omnicom Group Price Performance

Shares of OMC stock opened at $78.62 on Friday. The stock's fifty day simple moving average is $77.27 and its 200 day simple moving average is $76.90. 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 cap of $22.40 billion, a price-to-earnings ratio of 160.44, a P/E/G ratio of 0.65 and a beta of 0.73. Omnicom Group Inc. has a one year low of $66.33 and a one year high of $87.17.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its quarterly earnings results on Wednesday, February 18th. The business services provider reported $2.59 EPS for the quarter, missing the consensus estimate of $2.94 by ($0.35). The company had revenue of $5.53 billion during the quarter, compared to analyst estimates of $7.58 billion. Omnicom Group had a negative net margin of 0.32% and a positive return on equity of 25.65%. Omnicom Group's quarterly revenue was up 27.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.41 EPS. On average, analysts expect that Omnicom Group Inc. will post 8.25 earnings per share for the current fiscal year.

Omnicom Group announced that its Board of Directors has approved a share repurchase program on Wednesday, February 18th that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the business services provider to repurchase up to 38.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Omnicom Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Shareholders of record on Wednesday, March 11th were given a $0.80 dividend. The ex-dividend date was Wednesday, March 11th. This represents a $3.20 annualized dividend and a yield of 4.1%. Omnicom Group's payout ratio is presently 653.06%.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on OMC. Argus upgraded Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Bank of America reaffirmed an "underperform" rating and set a $77.00 price target (down from $87.00) on shares of Omnicom Group in a research note on Monday, January 5th. Citigroup raised their price target on Omnicom Group from $103.00 to $115.00 and gave the stock a "buy" rating in a research note on Friday, February 20th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a research note on Thursday, January 22nd. Finally, Barclays raised their price objective on Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research note on Monday, February 23rd. 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. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $95.86.

Omnicom Group Company 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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