Robinson Value Management Ltd. Increases Position in Omnicom Group Inc. $OMC

Key Points

• Robinson Value Management Ltd. boosted its stake in Omnicom by 94.2% in Q4 to 66,142 shares (worth $5.341 million), making OMC its 5th-largest holding at 2.9% of the fund.
• Omnicom's board authorized a $5.0 billion share buyback (up to 38.1% of outstanding shares) and declared a $0.80 quarterly dividend, implying a 4.2% yield.
• Omnicom missed quarterly expectations with EPS of $2.59 vs. $2.94 and revenue of $5.53B vs. $7.58B consensus; analysts' consensus rating is "Hold" with an average price target of $95.86.

Robinson Value Management Ltd. boosted its position in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 94.2% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 66,142 shares of the business services provider's stock after acquiring an additional 32,083 shares during the period. Omnicom Group accounts for 2.9% of Robinson Value Management Ltd.'s investment portfolio, making the stock its 5th biggest holding. Robinson Value Management Ltd.'s holdings in Omnicom Group were worth $5,341,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of OMC. Bollard Group LLC increased its stake in shares of Omnicom Group by 6.0% in the second quarter. Bollard Group LLC now owns 2,569 shares of the business services provider's stock worth $185,000 after purchasing an additional 145 shares during the period. Wilmington Savings Fund Society FSB boosted its stake in Omnicom Group by 2.0% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 7,330 shares of the business services provider's stock valued at $598,000 after purchasing an additional 145 shares during the period. Deseret Mutual Benefit Administrators boosted its stake in Omnicom Group by 7.9% during the 3rd quarter. Deseret Mutual Benefit Administrators now owns 2,031 shares of the business services provider's stock valued at $166,000 after purchasing an additional 149 shares during the period. Impact Partnership Wealth LLC grew its holdings in Omnicom Group by 3.1% in the 3rd quarter. Impact Partnership Wealth LLC now owns 4,923 shares of the business services provider's stock valued at $401,000 after buying an additional 150 shares during the last quarter. Finally, Geneos Wealth Management Inc. increased its position in Omnicom Group by 4.3% in the 3rd quarter. Geneos Wealth Management Inc. now owns 3,746 shares of the business services provider's stock worth $305,000 after buying an additional 156 shares during the period. 91.97% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

OMC has been the subject of a number of research analyst reports. Weiss Ratings reiterated a "hold (c)" rating on shares of Omnicom Group in a report on Thursday, January 22nd. Barclays raised their price objective 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. UBS Group boosted 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. Bank of America reiterated 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, Citigroup increased their price target on shares of Omnicom Group from $103.00 to $115.00 and gave the company a "buy" rating in a report on Friday, February 20th. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $95.86.

Omnicom Group Trading Up 0.4%

Shares of OMC opened at $75.68 on Thursday. The stock's 50-day moving average price is $77.39 and its 200 day moving average price is $77.01. 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 has a market capitalization of $23.49 billion, a price-to-earnings ratio of 154.45, a P/E/G ratio of 0.63 and a beta of 0.71. Omnicom Group Inc. has a 12-month low of $66.33 and a 12-month high of $87.17.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its quarterly earnings data on Wednesday, February 18th. The business services provider reported $2.59 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 firm had revenue of $5.53 billion during the quarter, compared to the consensus estimate of $7.58 billion. During the same quarter in the prior year, the business posted $2.41 EPS. Omnicom Group's revenue was up 27.9% compared to the same quarter last year. As a group, research analysts predict that Omnicom Group Inc. will post 8.25 earnings per share for the current year.

Omnicom Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Wednesday, March 11th will be given a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 4.2%. The ex-dividend date of this dividend is Wednesday, March 11th. Omnicom Group's dividend payout ratio (DPR) is 653.06%.

Omnicom Group announced that its Board of Directors has initiated a stock buyback 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 reacquire up to 38.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is 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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