Omnicom Group Inc. $OMC Shares Purchased by Sanctuary Advisors LLC

Key Points

• Sanctuary Advisors LLC boosted its stake in Omnicom by 152.3% in Q4, purchasing an additional 21,353 shares to own 35,371 shares worth about $2.86 million.
• Institutional ownership is very high at 91.97%, with large moves from funds like Vanguard (adding 15.22 million shares) and other major managers materially increasing their positions.
• Omnicom recently beat quarterly estimates on both EPS and revenue, announced a $5.00 billion share buyback authorization (up to 38.1% of shares), and pays a quarterly dividend that annualizes to a 4.2% yield despite a reported payout ratio of 820.51%.

Sanctuary Advisors LLC increased its stake in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 152.3% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 35,371 shares of the business services provider's stock after purchasing an additional 21,353 shares during the quarter. Sanctuary Advisors LLC's holdings in Omnicom Group were worth $2,856,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of OMC. Vanguard Group Inc. grew its stake in Omnicom Group by 64.2% during the 4th quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider's stock worth $3,143,930,000 after purchasing an additional 15,220,444 shares in the last quarter. First Eagle Investment Management LLC acquired a new position in Omnicom Group during the 3rd quarter worth $515,145,000. Bank of New York Mellon Corp grew its stake in Omnicom Group by 73.6% during 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 grew its stake in Omnicom Group by 15.8% during 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. Finally, JPMorgan Chase & Co. grew its stake in Omnicom Group by 30.5% during 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. 91.97% of the stock is owned by institutional investors and hedge funds.

Omnicom Group Price Performance

Shares of NYSE OMC opened at $77.02 on Friday. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.81 and a current ratio of 0.91. Omnicom Group Inc. has a fifty-two week low of $66.33 and a fifty-two week high of $87.17. The firm has a market capitalization of $21.95 billion, a PE ratio of 197.49, a price-to-earnings-growth ratio of 0.59 and a beta of 0.66. The stock's 50-day simple moving average is $78.37 and its 200-day simple moving average is $76.81.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its earnings results on Tuesday, April 28th. The business services provider reported $1.90 earnings per share for the quarter, topping the consensus estimate of $1.84 by $0.06. Omnicom Group had a return on equity of 24.48% and a net margin of 0.32%.The business had revenue of $6.24 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same quarter last year, the company earned $1.70 EPS. The business's quarterly revenue was up 69.2% on a year-over-year basis. As a group, equities research analysts forecast that Omnicom Group Inc. will post 10.92 EPS for the current fiscal year.

Omnicom Group announced that its board has authorized a stock buyback 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 repurchase up to 38.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board believes its shares are undervalued.

Omnicom Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Stockholders of record on Wednesday, March 11th were issued a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 4.2%. The ex-dividend date of this dividend was Wednesday, March 11th. Omnicom Group's payout ratio is presently 820.51%.

Analysts Set New Price Targets

Several research analysts recently commented on OMC shares. Morgan Stanley boosted their target price on Omnicom Group from $82.00 to $83.00 and gave the stock an "equal weight" rating in a research note on Friday. Citigroup lowered their target price on Omnicom Group from $115.00 to $105.00 and set a "buy" rating for the company in a research note on Thursday. Bank of America reaffirmed an "underperform" rating and set a $77.00 price objective (down from $87.00) on shares of Omnicom Group in a research report on Monday, January 5th. UBS Group increased their price objective on Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a report on Friday, March 20th. Finally, Argus raised Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $93.71.

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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