Robeco Institutional Asset Management B.V. Buys 19,036 Shares of Omnicom Group Inc. $OMC

Key Points

• Robeco Institutional Asset Management B.V. increased its stake in Omnicom Group by 27.7% in Q4, buying an additional 19,036 shares to own 87,809 shares worth about $7.09 million.
• Omnicom missed Q4 expectations with EPS of $2.59 vs. $2.94 consensus and revenue of $5.53 billion (below a $7.58 billion estimate) despite 27.9% Y/Y revenue growth, and the company announced a $5.0 billion share buyback authorization plus a quarterly dividend of $0.80 (4.1% yield).
• Analyst sentiment is mixed—four Buys, four Holds and one Sell with an average rating of Hold and an average price target of $95.86—while institutional investors own about 91.97% of the stock and market cap is roughly $22.1 billion.

Robeco Institutional Asset Management B.V. increased its stake in Omnicom Group Inc. (NYSE:OMC - Free Report) by 27.7% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 87,809 shares of the business services provider's stock after buying an additional 19,036 shares during the period. Robeco Institutional Asset Management B.V.'s holdings in Omnicom Group were worth $7,091,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of the stock. Clear Creek Financial Management LLC bought a new position in Omnicom Group in the fourth quarter worth about $304,000. Ritholtz Wealth Management raised its stake in Omnicom Group by 24.4% in the fourth quarter. Ritholtz Wealth Management now owns 12,916 shares of the business services provider's stock worth $1,043,000 after buying an additional 2,534 shares in the last quarter. Diversify Advisory Services LLC bought a new position in Omnicom Group in the fourth quarter worth about $312,000. Richardson Financial Services Inc. raised its stake in Omnicom Group by 104.7% in the fourth quarter. Richardson Financial Services Inc. now owns 2,765 shares of the business services provider's stock worth $223,000 after buying an additional 1,414 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA raised its stake in Omnicom Group by 5.8% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 7,870,437 shares of the business services provider's stock worth $635,538,000 after buying an additional 433,461 shares in the last quarter. 91.97% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Barclays increased their price target on shares of Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a research note on Monday, February 23rd. Argus raised shares of Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Weiss Ratings reissued a "hold (c)" rating on shares of Omnicom Group in a research note on Thursday, January 22nd. Bank of America reaffirmed an "underperform" rating and set a $77.00 target price (down from $87.00) on shares of Omnicom Group in a research note on Monday, January 5th. Finally, UBS Group raised their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $95.86.

Omnicom Group Price Performance

Shares of NYSE OMC opened at $77.46 on Thursday. Omnicom Group Inc. has a fifty-two week low of $66.33 and a fifty-two week high of $87.17. The company has a 50 day simple moving average of $76.90 and a two-hundred day simple moving average of $76.89. The company has a market capitalization of $22.08 billion, a price-to-earnings ratio of 158.08, a P/E/G ratio of 0.63 and a beta of 0.73. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.81 and a current ratio of 0.93.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share for the quarter, missing analysts' consensus estimates of $2.94 by ($0.35). Omnicom Group had a negative net margin of 0.32% and a positive return on equity of 25.65%. The business had revenue of $5.53 billion for the quarter, compared to the consensus estimate of $7.58 billion. During the same period in the prior year, the business posted $2.41 EPS. Omnicom Group's revenue for the quarter was up 27.9% on a year-over-year basis. Analysts expect that Omnicom Group Inc. will post 8.25 EPS for the current fiscal 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 paid a dividend of $0.80 per share. The ex-dividend date of this dividend was Wednesday, March 11th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.1%. Omnicom Group's dividend payout ratio (DPR) is currently 653.06%.

Omnicom Group announced that its Board of Directors has authorized a stock buyback 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 reacquire up to 38.1% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's leadership 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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