Omnicom Group Inc. $OMC Stock Holdings Raised by Deprince Race & Zollo Inc.

Key Points

• Deprince Race & Zollo Inc. raised its stake in Omnicom by 34.0% in Q4 to 524,037 shares (worth about $42.3M), and institutional ownership stands at roughly 91.97% with other funds (e.g., Sumitomo Mitsui Trust) also meaningfully increasing positions.
• Omnicom's board authorized a $5.0 billion share buyback (permitting repurchases of up to 38.1% of shares) and paid a $0.80 quarterly dividend (annualized $3.20, yield ~4.3%).
• The company missed Q4 EPS expectations ($2.59 vs. $2.94) despite revenue rising 27.9% to $5.53B; the stock trades around the mid-$70s with a market cap of about $21.3B and an average analyst rating of "Hold" (consensus target ~$95.86).

Deprince Race & Zollo Inc. raised its stake in Omnicom Group Inc. (NYSE:OMC - Free Report) by 34.0% in the 4th quarter, according to its most recent filing with the SEC. The fund owned 524,037 shares of the business services provider's stock after purchasing an additional 133,093 shares during the period. Deprince Race & Zollo Inc. owned 0.27% of Omnicom Group worth $42,316,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Choreo LLC increased its position in shares of Omnicom Group by 14.1% in the 4th quarter. Choreo LLC now owns 9,017 shares of the business services provider's stock worth $728,000 after purchasing an additional 1,113 shares during the last quarter. HF Advisory Group LLC increased its position in shares of Omnicom Group by 10.8% in the 4th quarter. HF Advisory Group LLC now owns 14,061 shares of the business services provider's stock worth $1,135,000 after purchasing an additional 1,369 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. increased its position in shares of Omnicom Group by 47.3% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 838,158 shares of the business services provider's stock worth $67,681,000 after purchasing an additional 269,045 shares during the last quarter. Robeco Institutional Asset Management B.V. increased its position in shares of Omnicom Group by 27.7% in the 4th quarter. Robeco Institutional Asset Management B.V. now owns 87,809 shares of the business services provider's stock worth $7,091,000 after purchasing an additional 19,036 shares during the last quarter. Finally, Clear Creek Financial Management LLC bought a new stake in shares of Omnicom Group in the 4th quarter worth about $304,000. Institutional investors own 91.97% of the company's stock.

Omnicom Group Stock Performance

Shares of NYSE OMC opened at $74.80 on Monday. 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 firm's 50-day moving average price is $76.57 and its two-hundred day moving average price is $76.89. Omnicom Group Inc. has a 52-week low of $66.33 and a 52-week high of $87.17. The stock has a market capitalization of $21.32 billion, a P/E ratio of 152.66, a P/E/G ratio of 0.61 and a beta of 0.73.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.94 by ($0.35). Omnicom Group had a positive return on equity of 25.65% and a negative net margin of 0.32%.The business had revenue of $5.53 billion during the quarter, compared to the consensus estimate of $7.58 billion. During the same period in the prior year, the business earned $2.41 EPS. The business's revenue was up 27.9% on a year-over-year basis. As a group, sell-side analysts forecast that Omnicom Group Inc. will post 8.25 earnings per share for the current year.

Omnicom Group Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Shareholders of record on Wednesday, March 11th were issued a $0.80 dividend. The ex-dividend date of this dividend was Wednesday, March 11th. This represents a $3.20 dividend on an annualized basis and a yield of 4.3%. Omnicom Group's dividend payout ratio (DPR) is currently 653.06%.

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

Analyst Ratings Changes

OMC has been the subject of several research analyst reports. Morgan Stanley initiated coverage on shares of Omnicom Group in a research report on Tuesday, December 16th. They issued an "equal weight" rating and a $88.00 target price for the company. Barclays boosted their target price on shares of Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a research report on Monday, February 23rd. Argus raised shares of Omnicom Group to a "hold" rating in a report on Thursday, March 26th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a report on Thursday, January 22nd. Finally, Bank of America reaffirmed an "underperform" rating and issued a $77.00 price target (down from $87.00) on shares of Omnicom Group in a report on Monday, January 5th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $95.86.

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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