Omnicom Group Inc. $OMC Shares Sold by Pictet Asset Management Holding SA

Key Points

• Pictet Asset Management trimmed its stake in Omnicom by 6.8%, selling 20,553 shares and leaving 282,668 shares (about 0.15% of the company) valued at roughly $22.8 million.
• Omnicom beat quarterly estimates, reporting $1.90 EPS vs. $1.84 and revenue of $6.24 billion (up 69.2% year-over-year), while analysts remain mixed with a consensus Hold rating and a $94.43 price target.
• The board authorized a $5.0 billion share buyback and the company pays a $0.80 quarterly dividend (annualized yield ~4.2%), although the reported payout ratio is an unusually high 820.51%.

Pictet Asset Management Holding SA lessened its stake in Omnicom Group Inc. (NYSE:OMC - Free Report) by 6.8% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 282,668 shares of the business services provider's stock after selling 20,553 shares during the period. Pictet Asset Management Holding SA owned about 0.15% of Omnicom Group worth $22,825,000 at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in the stock. Bayforest Capital Ltd bought a new stake in shares of Omnicom Group in the 4th quarter worth about $26,000. Cornerstone Planning Group LLC lifted its position in shares of Omnicom Group by 2,126.7% during the third quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock worth $27,000 after purchasing an additional 319 shares during the last quarter. Meeder Asset Management Inc. lifted its position in shares of Omnicom Group by 289.4% during the third quarter. Meeder Asset Management Inc. now owns 366 shares of the business services provider's stock worth $30,000 after purchasing an additional 272 shares during the last quarter. Westside Investment Management Inc. grew its stake in Omnicom Group by 100.0% in the third quarter. Westside Investment Management Inc. now owns 404 shares of the business services provider's stock worth $31,000 after purchasing an additional 202 shares in the last quarter. Finally, Flagship Harbor Advisors LLC acquired a new position in Omnicom Group in the fourth quarter worth about $32,000. 91.97% of the stock is owned by institutional investors and hedge funds.

Omnicom Group Price Performance

OMC opened at $76.73 on Friday. The company has a quick ratio of 0.81, a current ratio of 0.93 and a debt-to-equity ratio of 0.60. The company's 50-day moving average price is $78.37 and its 200 day moving average price is $76.81. 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 cap of $21.87 billion, a price-to-earnings ratio of 196.76, a price-to-earnings-growth ratio of 0.59 and a beta of 0.73.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its earnings results on Tuesday, April 28th. The business services provider reported $1.90 EPS for the quarter, beating analysts' consensus estimates of $1.84 by $0.06. The company had revenue of $6.24 billion during the quarter, compared to the consensus estimate of $5.85 billion. Omnicom Group had a return on equity of 26.45% and a net margin of 0.32%.Omnicom Group's quarterly revenue was up 69.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.70 earnings per share. As a group, sell-side analysts expect that Omnicom Group Inc. will post 10.92 earnings per share for the current year.

Omnicom Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Wednesday, March 11th were given a dividend of $0.80 per share. The ex-dividend date was Wednesday, March 11th. This represents a $3.20 dividend on an annualized basis and a yield of 4.2%. Omnicom Group's payout ratio is currently 820.51%.

Omnicom Group announced that its Board of Directors has authorized a stock buyback program on Wednesday, February 18th that authorizes the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to repurchase up to 38.1% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's board of directors believes its shares are undervalued.

Analyst Ratings Changes

Several brokerages have issued reports on OMC. Bank of America restated an "underperform" rating and set a $77.00 price objective (down from $87.00) on shares of Omnicom Group in a research note on Monday, January 5th. Argus upgraded Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. UBS Group boosted their price target on Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a report on Friday, March 20th. Barclays upped their price target on Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research report on Monday, February 23rd. Finally, Citigroup reduced their price objective on Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research note on Thursday. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $94.43.

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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