Omnicom Group Inc. $OMC Shares Purchased by Crawford Investment Counsel Inc.

Key Points

• Crawford Investment Counsel increased its stake in Omnicom by 2.7% in Q3 to 1,087,665 shares (about 0.56% of the company), a position worth roughly $88.7 million and the firm's 25th-largest holding.
• Omnicom's board approved a $5.0 billion stock buyback (up to 38.1% of shares) and declared a $0.80 quarterly dividend (annualized yield ~4.1%), while the company reported a Q that missed expectations (EPS $2.59 vs. $2.94; revenue $5.53B vs. $7.58B).
• Analyst coverage is mixed with a consensus rating of Hold and an average price target of $95, reflecting four Buys, three Holds and one Sell.

Crawford Investment Counsel Inc. raised its position in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 2.7% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,087,665 shares of the business services provider's stock after acquiring an additional 29,096 shares during the period. Omnicom Group makes up 1.5% of Crawford Investment Counsel Inc.'s portfolio, making the stock its 25th biggest position. Crawford Investment Counsel Inc. owned about 0.56% of Omnicom Group worth $88,677,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in OMC. ProShare Advisors LLC raised its holdings in shares of Omnicom Group by 2.5% in the 2nd quarter. ProShare Advisors LLC now owns 43,951 shares of the business services provider's stock worth $3,162,000 after purchasing an additional 1,084 shares during the period. Allworth Financial LP grew its holdings in shares of Omnicom Group by 17.9% during the 2nd quarter. Allworth Financial LP now owns 2,819 shares of the business services provider's stock worth $203,000 after purchasing an additional 428 shares during the period. National Pension Service grew its holdings in shares of Omnicom Group by 3.1% during the 2nd quarter. National Pension Service now owns 82,147 shares of the business services provider's stock worth $5,910,000 after purchasing an additional 2,455 shares during the period. Forsta AP Fonden increased its position in Omnicom Group by 1.6% during the 2nd quarter. Forsta AP Fonden now owns 39,100 shares of the business services provider's stock worth $2,813,000 after purchasing an additional 600 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in Omnicom Group by 0.9% during the 2nd quarter. Geode Capital Management LLC now owns 5,339,385 shares of the business services provider's stock worth $382,717,000 after purchasing an additional 48,868 shares in the last quarter. 91.97% of the stock is currently owned by institutional investors and hedge funds.

Omnicom Group Trading Down 0.2%

NYSE OMC opened at $77.74 on Friday. The stock has a market cap of $24.13 billion, a P/E ratio of 158.66, a PEG ratio of 0.75 and a beta of 0.71. The company's fifty day simple moving average is $77.76 and its 200-day simple moving average is $77.11. The company has a current ratio of 0.93, a quick ratio of 0.81 and a debt-to-equity ratio of 0.60. 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 released its quarterly earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share 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 period in the previous year, the business posted $2.41 earnings per share. Omnicom Group's revenue for the quarter was up 27.9% on a year-over-year basis. Equities research analysts predict that Omnicom Group Inc. will post 8.25 EPS for the current fiscal year.

Omnicom Group declared that its board has approved a stock buyback program on Wednesday, February 18th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the business services provider to reacquire up to 38.1% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Omnicom Group Dividend Announcement

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

Wall Street Analyst Weigh In

OMC has been the topic of a number of recent research reports. Barclays lifted their price target on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research report on Monday, February 23rd. Citigroup raised their target price on shares of Omnicom Group from $103.00 to $115.00 and gave the company a "buy" rating in a research note on Friday, February 20th. Bank of America restated an "underperform" rating and set a $77.00 target price (down from $87.00) on shares of Omnicom Group in a report on Monday, January 5th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Finally, Morgan Stanley assumed coverage on Omnicom Group in a report on Tuesday, December 16th. They issued an "equal weight" rating and a $88.00 price target for the company. Four analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $95.00.

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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