Omnicom Group Inc. $OMC Stake Lifted by Vanguard Group Inc.

Key Points

• Vanguard increased its stake in Omnicom by 64.2%, buying 15,220,444 shares to hold 38,934,118 shares (about 20.18% of the company) valued at roughly $3.14 billion at quarter-end.
• Omnicom authorized a $5.0 billion share buyback (up to 38.1% of outstanding shares) and recently paid a $0.80 quarterly dividend, representing a 4.2% yield.
• Omnicom beat quarterly estimates with $1.90 EPS (vs. $1.84) and revenue of $6.24 billion (up 69.2% year-over-year), while analysts maintain a consensus "Hold" rating with an average price target of $95.86.

Vanguard Group Inc. increased its stake in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 64.2% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 38,934,118 shares of the business services provider's stock after buying an additional 15,220,444 shares during the quarter. Vanguard Group Inc. owned about 20.18% of Omnicom Group worth $3,143,930,000 at the end of the most recent quarter.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Wilmington Savings Fund Society FSB boosted its position in Omnicom Group by 2.0% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 7,330 shares of the business services provider's stock worth $598,000 after acquiring an additional 145 shares during the period. Leonard Rickey Investment Advisors P.L.L.C. boosted its position in Omnicom Group by 4.1% during the 4th quarter. Leonard Rickey Investment Advisors P.L.L.C. now owns 3,775 shares of the business services provider's stock worth $305,000 after acquiring an additional 147 shares during the period. Deseret Mutual Benefit Administrators boosted its position in Omnicom Group by 7.9% during the 3rd quarter. Deseret Mutual Benefit Administrators now owns 2,031 shares of the business services provider's stock worth $166,000 after acquiring an additional 149 shares during the period. Impact Partnership Wealth LLC boosted its position in Omnicom Group by 3.1% during the 3rd quarter. Impact Partnership Wealth LLC now owns 4,923 shares of the business services provider's stock worth $401,000 after acquiring an additional 150 shares during the period. Finally, Geneos Wealth Management Inc. boosted its position in Omnicom Group by 4.3% during the 3rd quarter. Geneos Wealth Management Inc. now owns 3,746 shares of the business services provider's stock worth $305,000 after acquiring an additional 156 shares during the period. 91.97% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of research analysts have issued reports on the company. Citigroup boosted their price target on Omnicom Group from $103.00 to $115.00 and gave the stock a "buy" rating in a research report on Friday, February 20th. Bank of America reiterated an "underperform" rating and set a $77.00 price target (down from $87.00) on shares of Omnicom Group in a research report on Monday, January 5th. UBS Group upped 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. Argus upgraded Omnicom Group to a "hold" rating in a report on Thursday, March 26th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Omnicom Group in a report on Thursday, January 22nd. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $95.86.

Omnicom Group Trading Up 1.2%

Shares of NYSE OMC opened at $76.92 on Wednesday. Omnicom Group Inc. has a 12 month low of $66.33 and a 12 month high of $87.17. The company has a market cap of $21.92 billion, a price-to-earnings ratio of 156.98, a P/E/G ratio of 0.58 and a beta of 0.73. 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 business has a fifty day simple moving average of $78.34 and a 200-day simple moving average of $76.82.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its earnings results on Wednesday, April 29th. The business services provider reported $1.90 EPS for the quarter, beating the consensus estimate of $1.84 by $0.06. Omnicom Group had a positive return on equity of 25.65% and a negative net margin of 0.32%.The business had revenue of $6.24 billion during the quarter, compared to the consensus estimate of $5.61 billion. During the same period in the prior year, the business posted $1.70 earnings per share. Omnicom Group's revenue was up 69.2% compared to the same quarter last year. Sell-side analysts predict that Omnicom Group Inc. will post 10.92 EPS for the current year.

Omnicom Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Stockholders of record on Wednesday, March 11th were issued a dividend of $0.80 per share. 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 dividend payout ratio is currently 653.06%.

Omnicom Group declared that its board has authorized a stock repurchase plan on Wednesday, February 18th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the business services provider to purchase up to 38.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

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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