RWC Asset Management LLP Reduces Position in Omnicom Group Inc. (NYSE:OMC)

Key Points

• RWC Asset Management LLP reduced its stake in Omnicom Group by 4.3%, selling 19,203 shares, which now represents about 1.8% of its investment portfolio.
• Omnicom Group reported earnings per share of $2.05 for the latest quarter, exceeding estimates, and achieved a 4.2% year-over-year revenue growth.
• The company is set to pay a quarterly dividend of $0.70 on October 10th, which represents an annualized yield of 3.66%.

RWC Asset Management LLP lowered its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 4.3% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 426,501 shares of the business services provider's stock after selling 19,203 shares during the period. Omnicom Group makes up 1.8% of RWC Asset Management LLP's holdings, making the stock its 15th biggest holding. RWC Asset Management LLP owned approximately 0.22% of Omnicom Group worth $35,361,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in OMC. Robinson Value Management Ltd. increased its position in shares of Omnicom Group by 0.4% during the first quarter. Robinson Value Management Ltd. now owns 34,217 shares of the business services provider's stock worth $2,837,000 after purchasing an additional 139 shares in the last quarter. Versant Capital Management Inc lifted its holdings in shares of Omnicom Group by 45.7% in the first quarter. Versant Capital Management Inc now owns 456 shares of the business services provider's stock valued at $38,000 after purchasing an additional 143 shares in the last quarter. MGO One Seven LLC grew its holdings in shares of Omnicom Group by 3.2% during the fourth quarter. MGO One Seven LLC now owns 5,075 shares of the business services provider's stock worth $437,000 after buying an additional 157 shares in the last quarter. Mezzasalma Advisors LLC boosted its position in shares of Omnicom Group by 3.1% in the first quarter. Mezzasalma Advisors LLC now owns 5,339 shares of the business services provider's stock worth $443,000 after acquiring an additional 159 shares during the last quarter. Finally, Linden Thomas Advisory Services LLC increased its position in shares of Omnicom Group by 0.8% in the first quarter. Linden Thomas Advisory Services LLC now owns 22,126 shares of the business services provider's stock worth $1,834,000 after acquiring an additional 165 shares in the last quarter. 91.97% of the stock is currently owned by institutional investors and hedge funds.

Omnicom Group Stock Performance

Shares of NYSE OMC traded down $0.25 during mid-day trading on Thursday, reaching $72.40. 1,394,709 shares of the company's stock were exchanged, compared to its average volume of 3,642,676. The firm has a 50-day moving average price of $72.62 and a two-hundred day moving average price of $77.49. The firm has a market capitalization of $14.03 billion, a price-to-earnings ratio of 10.37, a price-to-earnings-growth ratio of 1.48 and a beta of 0.92. The company has a debt-to-equity ratio of 0.97, a current ratio of 0.92 and a quick ratio of 0.80. Omnicom Group Inc. has a 52 week low of $68.37 and a 52 week high of $107.00.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its quarterly earnings data on Tuesday, July 15th. The business services provider reported $2.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.02 by $0.03. Omnicom Group had a return on equity of 33.62% and a net margin of 8.67%. The firm had revenue of $4.02 billion for the quarter, compared to analysts' expectations of $3.95 billion. During the same period last year, the firm earned $1.95 earnings per share. The company's revenue for the quarter was up 4.2% compared to the same quarter last year. Analysts predict that Omnicom Group Inc. will post 8.25 EPS for the current year.

Omnicom Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Tuesday, September 2nd will be issued a $0.70 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $2.80 dividend on an annualized basis and a yield of 3.87%. Omnicom Group's dividend payout ratio is currently 40.17%.

Analyst Ratings Changes

OMC has been the subject of a number of analyst reports. Barclays lowered Omnicom Group from an "overweight" rating to an "equal weight" rating and reduced their price objective for the company from $105.00 to $80.00 in a research report on Wednesday, June 25th. Bank of America upgraded Omnicom Group from an "underperform" rating to a "neutral" rating and set a $80.00 target price on the stock in a report on Monday, June 23rd. Citigroup reissued a "buy" rating and set a $103.00 target price on shares of Omnicom Group in a research note on Tuesday, April 15th. Wells Fargo & Company decreased their price target on Omnicom Group from $84.00 to $78.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 16th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Omnicom Group from $104.00 to $96.00 and set an "overweight" rating for the company in a research note on Thursday, July 10th. Four analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $94.43.

About Omnicom Group

Omnicom Group Inc, together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, public relations, and healthcare.