Resona Asset Management Co. Ltd. Purchases 35,247 Shares of Omnicom Group Inc. $OMC

Key Points

• Resona Asset Management increased its Omnicom Group stake by 55.4% in the fourth quarter, buying 35,247 additional shares to bring its total to 98,842 shares worth about $7.98 million.
• Institutional ownership remains very high, with 91.97% of Omnicom’s stock held by institutional investors. Other major firms, including Vanguard, State Street, and JPMorgan Chase, also boosted their holdings.
• Omnicom beat quarterly expectations, reporting $1.90 EPS and $6.24 billion in revenue, both above analyst estimates. The company also announced a $0.80 quarterly dividend and a $5 billion share repurchase program.

Resona Asset Management Co. Ltd. increased its position in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 55.4% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 98,842 shares of the business services provider's stock after buying an additional 35,247 shares during the period. Resona Asset Management Co. Ltd. owned 0.05% of Omnicom Group worth $7,976,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of OMC. Vanguard Group Inc. boosted its holdings in shares of Omnicom Group by 64.2% during the 4th quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider's stock worth $3,143,930,000 after buying an additional 15,220,444 shares during the period. First Eagle Investment Management LLC bought a new stake in Omnicom Group in the 3rd quarter valued at $515,145,000. Bank of New York Mellon Corp boosted its holdings in Omnicom Group by 73.6% in the 3rd quarter. Bank of New York Mellon Corp now owns 6,652,469 shares of the business services provider's stock valued at $542,376,000 after purchasing an additional 2,820,553 shares during the period. State Street Corp boosted its holdings in Omnicom Group by 15.8% in the 3rd quarter. State Street Corp now owns 16,863,327 shares of the business services provider's stock valued at $1,384,980,000 after purchasing an additional 2,298,652 shares during the period. Finally, JPMorgan Chase & Co. boosted its holdings in Omnicom Group by 30.5% in the 3rd quarter. JPMorgan Chase & Co. now owns 8,107,021 shares of the business services provider's stock valued at $660,969,000 after purchasing an additional 1,893,316 shares during the period. 91.97% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the stock. Barclays increased their price target 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. Morgan Stanley increased their price target on shares of Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a report on Friday, May 1st. Weiss Ratings reissued a "hold (c)" rating on shares of Omnicom Group in a report on Thursday, January 22nd. Citigroup reduced their price target on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating for the company in a report on Thursday, April 30th. Finally, Argus raised shares of Omnicom Group to a "hold" rating in a report on Thursday, March 26th. 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's stock. According to MarketBeat, Omnicom Group has an average rating of "Hold" and a consensus price target of $93.71.

Omnicom Group Price Performance

NYSE:OMC opened at $73.79 on Friday. The company has a 50-day moving average of $75.93 and a 200-day moving average of $76.48. The company has a market capitalization of $21.03 billion, a price-to-earnings ratio of 189.22, a PEG ratio of 0.43 and a beta of 0.66. Omnicom Group Inc. has a 52 week low of $66.33 and a 52 week high of $87.17. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.77 and a current ratio of 0.91.

Omnicom Group (NYSE:OMC - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The business services provider reported $1.90 EPS for the quarter, topping 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 net margin of 0.32% and a return on equity of 24.48%. The firm's revenue for the quarter was up 69.2% compared to the same quarter last year. During the same period last year, the firm earned $1.70 EPS. As a group, equities research analysts anticipate that Omnicom Group Inc. will post 10.97 earnings per share for the current fiscal year.

Omnicom Group Dividend Announcement

The firm also recently disclosed 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. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date of this dividend is Wednesday, June 10th. Omnicom Group's dividend payout ratio (DPR) is presently 820.51%.

Omnicom Group declared that its board has approved a share repurchase program on Wednesday, February 18th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the business services provider to repurchase up to 38.1% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board 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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