Omnicom Group Inc. $OMC Shares Purchased by Asset Management One Co. Ltd.

Key Points

• Asset Management One boosted its Omnicom stake 40.4% in Q4 to 112,771 shares (about $9.08M), and institutional investors now own roughly 91.97% of the stock.
• Omnicom missed quarterly estimates — EPS $2.59 vs $2.94 and revenue $5.53B vs $7.58B — though revenue was up 27.9% year-over-year.
• The board authorized a $5.0 billion buyback (up to 38.1% of shares) and the company pays a $0.80 quarterly dividend (4.1% yield), signaling a strong focus on shareholder returns despite mixed results.

Asset Management One Co. Ltd. boosted its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 40.4% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 112,771 shares of the business services provider's stock after acquiring an additional 32,432 shares during the quarter. Asset Management One Co. Ltd. owned 0.06% of Omnicom Group worth $9,075,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Cornerstone Planning Group LLC boosted its stake in Omnicom Group by 2,126.7% during the 3rd quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock valued at $27,000 after purchasing an additional 319 shares in the last quarter. Meeder Asset Management Inc. boosted its stake in Omnicom Group by 289.4% during the 3rd quarter. Meeder Asset Management Inc. now owns 366 shares of the business services provider's stock valued at $30,000 after purchasing an additional 272 shares in the last quarter. Flagship Harbor Advisors LLC bought a new position in Omnicom Group during the 4th quarter valued at $32,000. Westside Investment Management Inc. boosted its stake in Omnicom Group by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 404 shares of the business services provider's stock valued at $31,000 after purchasing an additional 202 shares in the last quarter. Finally, Wealth Watch Advisors INC bought a new position in Omnicom Group during the 3rd quarter valued at $34,000. 91.97% of the stock is currently owned by institutional investors and hedge funds.

Omnicom Group Price Performance

Shares of NYSE:OMC opened at $78.08 on Wednesday. Omnicom Group Inc. has a 1 year low of $66.33 and a 1 year high of $87.17. The business has a fifty day simple moving average of $77.53 and a 200 day simple moving average of $76.88. The company has a current ratio of 0.93, a quick ratio of 0.81 and a debt-to-equity ratio of 0.60. The firm has a market cap of $22.25 billion, a price-to-earnings ratio of 159.34, a P/E/G ratio of 0.60 and a beta of 0.73.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share for the quarter, missing the consensus estimate 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 company had revenue of $5.53 billion for the quarter, compared to the consensus estimate of $7.58 billion. During the same quarter last year, the business earned $2.41 earnings per share. Omnicom Group's quarterly revenue was up 27.9% on a year-over-year basis. As a group, sell-side analysts predict that Omnicom Group Inc. will post 10.92 earnings per share for the current fiscal year.

Omnicom Group declared that its board has authorized a stock 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 stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its shares are undervalued.

Omnicom Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Shareholders of record on Wednesday, March 11th were issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 4.1%. The ex-dividend date was Wednesday, March 11th. Omnicom Group's dividend payout ratio (DPR) is 653.06%.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on OMC. Barclays increased their price target 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. Argus raised Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Weiss Ratings reissued a "hold (c)" rating on shares of Omnicom Group in a research note on Thursday, January 22nd. Citigroup raised their price objective on Omnicom Group from $103.00 to $115.00 and gave the stock a "buy" rating in a research note on Friday, February 20th. Finally, Bank of America reaffirmed an "underperform" rating and issued a $77.00 target price (down from $87.00) on shares of Omnicom Group in a research report on Monday, January 5th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $95.86.

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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