Omnicom Group Inc. $OMC Shares Purchased by Engineers Gate Manager LP

Key Points

• Engineers Gate Manager LP massively increased its Omnicom Group stake in the fourth quarter, buying 321,105 additional shares and lifting its holdings by 1,457.2% to 343,140 shares worth about $27.7 million.
• Other large institutions also boosted their positions, including Vanguard, State Street, Bank of New York Mellon, and Geode Capital Management, with institutional investors now owning 91.97% of Omnicom’s stock.
• Omnicom reported better-than-expected quarterly results, with EPS of $1.90 versus estimates of $1.84 and revenue of $6.24 billion above expectations; the company also maintained a 4.2% dividend yield and has a $5 billion share repurchase authorization in place.

Engineers Gate Manager LP lifted its stake in Omnicom Group Inc. (NYSE:OMC - Free Report) by 1,457.2% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 343,140 shares of the business services provider's stock after purchasing an additional 321,105 shares during the period. Engineers Gate Manager LP owned approximately 0.18% of Omnicom Group worth $27,709,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Vanguard Group Inc. increased its position in shares of Omnicom Group by 64.2% in the fourth quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider's stock valued at $3,143,930,000 after buying an additional 15,220,444 shares in the last quarter. State Street Corp boosted its position in shares of Omnicom Group by 40.4% in the 4th quarter. State Street Corp now owns 23,676,768 shares of the business services provider's stock worth $1,933,891,000 after buying an additional 6,813,441 shares in the last quarter. First Eagle Investment Management LLC acquired a new stake in Omnicom Group in the 3rd quarter valued at about $515,145,000. Bank of New York Mellon Corp grew its stake in Omnicom Group by 69.6% in the 4th quarter. Bank of New York Mellon Corp now owns 11,283,863 shares of the business services provider's stock valued at $911,172,000 after acquiring an additional 4,631,394 shares during the last quarter. Finally, Geode Capital Management LLC increased its holdings in Omnicom Group by 57.1% during the 4th quarter. Geode Capital Management LLC now owns 8,578,075 shares of the business services provider's stock valued at $690,327,000 after acquiring an additional 3,117,188 shares in the last quarter. Institutional investors and hedge funds own 91.97% of the company's stock.

Omnicom Group Stock Performance

Shares of OMC opened at $76.18 on Thursday. The company has a current ratio of 0.91, a quick ratio of 0.77 and a debt-to-equity ratio of 0.99. The stock has a market cap of $21.71 billion, a P/E ratio of 195.34, a PEG ratio of 0.46 and a beta of 0.63. The company has a 50-day moving average of $75.58 and a two-hundred day moving average of $76.77. Omnicom Group Inc. has a 12-month low of $66.33 and a 12-month high of $87.17.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its earnings results on Wednesday, April 29th. The business services provider reported $1.90 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.84 by $0.06. The company had revenue of $6.24 billion during the quarter, compared to analysts' expectations of $5.85 billion. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The firm's quarterly revenue was up 69.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.70 earnings per share. As a group, 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 disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Wednesday, June 10th will be given a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend is Wednesday, June 10th. Omnicom Group's payout ratio is currently 820.51%.

Omnicom Group declared that its board has authorized a share repurchase plan on Wednesday, February 18th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the business services provider to reacquire up to 38.1% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board of directors believes its stock is undervalued.

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Weiss Ratings restated a "hold (c-)" rating on shares of Omnicom Group in a research report on Friday, May 22nd. Citigroup cut their target price on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating for the company in a research report on Thursday, April 30th. Rothschild & Co Redburn assumed coverage on shares of Omnicom Group in a research report on Thursday, May 28th. They set a "neutral" rating and a $89.00 target price for the company. UBS Group lifted their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Finally, Argus upgraded shares of Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Five equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $99.00.

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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