Omnicom Group Inc. $OMC Stock Holdings Increased by Gamco Investors INC. ET AL

Key Points

• Gamco Investors sharply increased its stake in Omnicom Group by 6,819.3% in the fourth quarter, ending with 214,222 shares valued at about $17.3 million.
• Omnicom reported better-than-expected quarterly results, posting EPS of $1.90 versus estimates of $1.84 and revenue of $6.24 billion versus expectations of $5.85 billion.
• The company also highlighted shareholder returns with a $0.80 quarterly dividend and a newly authorized $5 billion stock buyback, while analysts currently hold a consensus “Hold” rating with an average price target of $93.71.

Gamco Investors INC. ET AL boosted its holdings in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 6,819.3% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 214,222 shares of the business services provider's stock after acquiring an additional 211,126 shares during the quarter. Gamco Investors INC. ET AL owned approximately 0.11% of Omnicom Group worth $17,298,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Oppenheimer Asset Management Inc. raised its position in Omnicom Group by 15.3% during the third quarter. Oppenheimer Asset Management Inc. now owns 108,310 shares of the business services provider's stock valued at $8,831,000 after acquiring an additional 14,368 shares in the last quarter. Principal Financial Group Inc. raised its position in Omnicom Group by 18.7% during the third quarter. Principal Financial Group Inc. now owns 1,877,462 shares of the business services provider's stock valued at $153,068,000 after acquiring an additional 295,379 shares in the last quarter. Jackson Creek Investment Advisors LLC bought a new position in Omnicom Group during the third quarter valued at approximately $870,000. AustralianSuper Pty Ltd raised its position in Omnicom Group by 24.2% during the third quarter. AustralianSuper Pty Ltd now owns 129,755 shares of the business services provider's stock valued at $10,579,000 after acquiring an additional 25,317 shares in the last quarter. Finally, National Pension Service raised its position in Omnicom Group by 35.3% during the third quarter. National Pension Service now owns 111,161 shares of the business services provider's stock valued at $9,063,000 after acquiring an additional 29,014 shares in the last quarter. Institutional investors own 91.97% of the company's stock.

Wall Street Analysts Forecast Growth

OMC has been the topic of several recent research reports. Barclays raised their price objective on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research report on Monday, February 23rd. Argus raised shares of Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Morgan Stanley lifted their price target on shares of Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a research report on Friday, May 1st. Citigroup dropped their price target on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Finally, UBS Group lifted their price target on shares of Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research report on Friday, March 20th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Omnicom Group has a consensus rating of "Hold" and an average price target of $93.71.

Omnicom Group Trading Up 3.3%

NYSE:OMC opened at $73.20 on Tuesday. Omnicom Group Inc. has a 12 month low of $66.33 and a 12 month high of $87.17. The firm has a market cap of $20.86 billion, a price-to-earnings ratio of 187.70, a P/E/G ratio of 0.42 and a beta of 0.66. The company has a quick ratio of 0.77, a current ratio of 0.91 and a debt-to-equity ratio of 0.99. The company's 50 day moving average is $76.58 and its 200-day moving average is $76.54.

Omnicom Group (NYSE:OMC - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The business services provider reported $1.90 EPS for the quarter, beating analysts' consensus estimates of $1.84 by $0.06. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The company had revenue of $6.24 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same quarter last year, the firm posted $1.70 earnings per share. The company's quarterly revenue was up 69.2% compared to the same quarter last year. Equities analysts anticipate that Omnicom Group Inc. will post 10.97 EPS for the current year.

Omnicom Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Wednesday, June 10th will be paid a $0.80 dividend. The ex-dividend date is Wednesday, June 10th. This represents a $3.20 annualized dividend and a dividend yield of 4.4%. Omnicom Group's dividend payout ratio (DPR) is presently 820.51%.

Omnicom Group announced that its Board of Directors has initiated a stock repurchase 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 buy up to 38.1% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's management believes its stock is undervalued.

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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