Sound Shore Management Inc. CT Takes $63.48 Million Position in Omnicom Group Inc. $OMC

Key Points

• Sound Shore Management disclosed a new first-quarter position in Omnicom Group, buying 842,962 shares worth about $63.5 million and representing roughly 0.30% of the company.
• Institutional ownership remains heavy, with 91.97% of Omnicom shares held by hedge funds and other institutions; several other large investors also added to or initiated positions.
• Omnicom recently beat earnings and revenue estimates for the quarter, while analysts currently rate the stock a consensus “Hold” with a $99.38 price target; the company also declared a quarterly dividend of $0.80 per share (3.9% annualized yield).

Sound Shore Management Inc. CT acquired a new position in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) in the first quarter, according to its most recent 13F filing with the SEC. The institutional investor acquired 842,962 shares of the business services provider's stock, valued at approximately $63,483,000. Sound Shore Management Inc. CT owned about 0.30% of Omnicom Group as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. EverSource Wealth Advisors LLC increased its stake in Omnicom Group by 82.9% during the second quarter. EverSource Wealth Advisors LLC now owns 1,917 shares of the business services provider's stock worth $138,000 after acquiring an additional 869 shares during the last quarter. Gamco Investors INC. ET AL acquired a new position in shares of Omnicom Group in the 2nd quarter valued at about $241,000. Gabelli Funds LLC acquired a new position in shares of Omnicom Group in the 2nd quarter valued at about $1,061,000. Daiwa Securities Group Inc. grew its holdings in shares of Omnicom Group by 5.3% during the 2nd quarter. Daiwa Securities Group Inc. now owns 29,373 shares of the business services provider's stock worth $2,113,000 after purchasing an additional 1,482 shares during the period. Finally, Sei Investments Co. grew its holdings in shares of Omnicom Group by 14.1% during the 2nd quarter. Sei Investments Co. now owns 361,266 shares of the business services provider's stock worth $25,990,000 after purchasing an additional 44,746 shares during the period. 91.97% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts recently commented on OMC shares. Rothschild & Co Redburn assumed coverage on shares of Omnicom Group in a report on Thursday, May 28th. They issued a "neutral" rating and a $89.00 price target on the stock. The Goldman Sachs Group began coverage on shares of Omnicom Group in a research note on Wednesday, June 3rd. They set a "buy" rating and a $146.00 price objective for the company. Morgan Stanley increased their price objective on shares of Omnicom Group from $82.00 to $83.00 and gave the stock an "equal weight" rating in a research report on Friday, May 1st. Argus raised shares of Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Omnicom Group in a research note on Friday, May 22nd. Four equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $99.38.

Omnicom Group Price Performance

OMC stock opened at $81.72 on Monday. 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 Inc. has a 1 year low of $66.33 and a 1 year high of $87.17. The firm has a market cap of $23.29 billion, a P/E ratio of 209.53, a price-to-earnings-growth ratio of 0.49 and a beta of 0.63. The stock has a 50-day simple moving average of $75.79 and a 200-day simple moving average of $76.78.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its earnings results on Wednesday, April 29th. The business services provider reported $1.90 EPS for the quarter, beating the consensus estimate of $1.84 by $0.06. The business had revenue of $6.24 billion for the quarter, compared to the consensus estimate of $5.85 billion. Omnicom Group had a return on equity of 24.48% and a net margin of 0.32%.The company's revenue was up 69.2% on a year-over-year basis. During the same period last year, the business posted $1.70 EPS. On average, equities analysts predict that Omnicom Group Inc. will post 10.97 earnings per share for the current fiscal year.

Omnicom Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Friday, September 18th will be paid a dividend of $0.80 per share. The ex-dividend date is Friday, September 18th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 3.9%. Omnicom Group's dividend payout ratio (DPR) is currently 820.51%.

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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