Principal Financial Group Inc. Reduces Stock Holdings in Omnicom Group Inc. $OMC

Key Points

• Principal Financial Group reduced its stake in Omnicom by 21.9%, selling 410,837 shares to hold 1,466,625 shares (about 0.76% of the company) valued at $118.43 million.
• Omnicom beat quarterly expectations with EPS of $1.90 (vs. $1.84) and revenue of $6.24 billion (up 69.2% YoY), and its board authorized a $5.0 billion stock repurchase program (up to 38.1% of shares).
• The company declared a quarterly dividend of $0.80 (annualized $3.20, ~4.2% yield), while analysts' consensus rating is Hold with a $93.71 price target.

Principal Financial Group Inc. reduced its stake in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 21.9% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,466,625 shares of the business services provider's stock after selling 410,837 shares during the quarter. Principal Financial Group Inc. owned approximately 0.76% of Omnicom Group worth $118,431,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Activest Wealth Management increased its position in shares of Omnicom Group by 2,960.0% during the fourth quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock valued at $25,000 after buying an additional 296 shares during the period. Bayforest Capital Ltd bought a new stake in Omnicom Group during the 4th quarter valued at approximately $26,000. Cornerstone Planning Group LLC grew its holdings in shares of Omnicom Group by 2,126.7% during the 3rd quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock worth $27,000 after acquiring an additional 319 shares during the period. Meeder Asset Management Inc. grew its holdings in shares of Omnicom Group by 289.4% during the 3rd quarter. Meeder Asset Management Inc. now owns 366 shares of the business services provider's stock worth $30,000 after acquiring an additional 272 shares during the period. Finally, Flagship Harbor Advisors LLC bought a new position in shares of Omnicom Group in the 4th quarter worth approximately $32,000. 91.97% of the stock is owned by hedge funds and other institutional investors.

Omnicom Group Price Performance

Shares of NYSE:OMC opened at $76.80 on Thursday. Omnicom Group Inc. has a 1-year low of $66.33 and a 1-year high of $87.17. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.91 and a quick ratio of 0.77. The business has a fifty day moving average price of $78.18 and a 200-day moving average price of $76.79. The company has a market capitalization of $21.89 billion, a PE ratio of 196.92, a PEG ratio of 0.60 and a beta of 0.66.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The business services provider reported $1.90 earnings per share (EPS) for the quarter, topping 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 analysts' expectations of $5.85 billion. During the same quarter in the previous year, the business posted $1.70 EPS. Omnicom Group's revenue was up 69.2% compared to the same quarter last year. As a group, equities analysts expect that Omnicom Group Inc. will post 10.91 EPS for the current fiscal year.

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

Omnicom Group Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Wednesday, June 10th will be issued a dividend of $0.80 per share. The ex-dividend date is Wednesday, June 10th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.2%. Omnicom Group's dividend payout ratio is presently 820.51%.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Argus upgraded Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Citigroup lowered their price objective on Omnicom Group from $115.00 to $105.00 and set a "buy" rating for the company in a research report on Thursday, April 30th. Barclays boosted their target price on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a report on Monday, February 23rd. UBS Group upped their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Finally, 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. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $93.71.

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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