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

Key Points

• Engineers Gate Manager LP cut its Omnicom Group stake by 11.9% in the second quarter, selling 33,520 shares and retaining 249,035 shares valued at approximately $18.1 million. Institutional investors collectively own 91.97% of OMC.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $99 price target; ratings range from “Strong Sell” to “Buy.” Omnicom recently reported $2.65 in quarterly EPS, slightly below estimates, while revenue rose 63.4% year over year to $6.56 billion.
• Omnicom declared a quarterly dividend of $0.80 per share, equivalent to a $3.20 annualized payout and a 4.1% yield, though its payout ratio is elevated at 275.86%.

Engineers Gate Manager LP decreased its position in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 11.9% during the 2nd quarter, according to its most recent disclosure with the SEC. The firm owned 249,035 shares of the business services provider's stock after selling 33,520 shares during the period. Engineers Gate Manager LP owned 0.09% of Omnicom Group worth $18,137,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Resona Asset Management Co. Ltd. increased its stake in shares of Omnicom Group by 55.4% during the 4th quarter. Resona Asset Management Co. Ltd. now owns 98,842 shares of the business services provider's stock valued at $7,976,000 after acquiring an additional 35,247 shares during the last quarter. Orca Investment Management LLC purchased a new stake in Omnicom Group in the second quarter valued at approximately $2,023,000. Gamco Investors INC. ET AL grew its holdings in Omnicom Group by 6,819.3% in the fourth quarter. Gamco Investors INC. ET AL now owns 214,222 shares of the business services provider's stock valued at $17,298,000 after purchasing an additional 211,126 shares during the period. Abacus Wealth Partners LLC acquired a new position in Omnicom Group during the fourth quarter worth approximately $1,752,000. Finally, DNB Asset Management AS increased its position in Omnicom Group by 479.7% during the fourth quarter. DNB Asset Management AS now owns 213,772 shares of the business services provider's stock worth $17,262,000 after purchasing an additional 176,894 shares during the last quarter. 91.97% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several analysts have recently issued reports on OMC shares. Rothschild & Co Redburn assumed coverage on shares of Omnicom Group in a research note on Thursday, May 28th. They set a "neutral" rating and a $89.00 price objective for the company. Weiss Ratings raised Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 30th. Zacks Research cut Omnicom Group from a "hold" rating to a "strong sell" rating in a report on Thursday, July 30th. Citigroup lowered their price target on Omnicom Group from $105.00 to $100.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Finally, Wells Fargo & Company upped their price target on Omnicom Group from $91.00 to $93.00 and gave the stock an "overweight" rating in a research note on Thursday, July 30th. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $99.00.

Insider Activity

In other news, Director Linda Rice sold 1,385 shares of the stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $88.73, for a total value of $122,891.05. Following the completion of the sale, the director owned 11,719 shares in the company, valued at approximately $1,039,826.87. This trade represents a 10.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.20% of the company's stock.

Omnicom Group Price Performance

Omnicom Group stock opened at $78.22 on Thursday. The firm has a fifty day moving average of $83.21 and a 200-day moving average of $78.92. Omnicom Group Inc. has a 52-week low of $66.33 and a 52-week high of $89.57. The company has a quick ratio of 0.78, a current ratio of 0.92 and a debt-to-equity ratio of 0.97. The firm has a market capitalization of $21.46 billion, a P/E ratio of 67.44, a PEG ratio of 0.69 and a beta of 0.65.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its earnings results on Tuesday, July 28th. The business services provider reported $2.65 earnings per share for the quarter, missing the consensus estimate of $2.67 by ($0.02). Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. The business had revenue of $6.56 billion for the quarter, compared to analyst estimates of $6.44 billion. During the same quarter in the previous year, the firm posted $2.05 EPS. The business's revenue was up 63.4% compared to the same quarter last year. As a group, analysts predict that Omnicom Group Inc. will post 10.35 EPS for the current year.

Omnicom Group Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Friday, September 18th will be given a $0.80 dividend. The ex-dividend date of this dividend is Friday, September 18th. This represents a $3.20 annualized dividend and a dividend yield of 4.1%. Omnicom Group's dividend payout ratio is presently 275.86%.

Omnicom Group Company Profile

Omnicom Group Inc NYSE: OMC is a global marketing and communications holding company. Through a network of agencies and specialized businesses, it provides advertising, branding, media planning and buying, public relations, customer relationship management, digital marketing, experiential marketing and healthcare communications services.

Omnicom's agency brands have included BBDO Worldwide, DDB Worldwide, TBWA\Worldwide, Omnicom Media Group, FleishmanHillard and Ketchum. These businesses serve clients across industries, including consumer products, healthcare, technology, financial services, automotive and telecommunications, helping organizations develop brand strategies, create campaigns and engage audiences through traditional and digital channels.

Omnicom was formed in 1986 through the merger of advertising companies BBDO, Doyle Dane Bernbach and Needham Harper Worldwide.

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