State Street Corp Sells 3,169,816 Shares of Omnicom Group Inc. $OMC

Key Points

• State Street reduced its Omnicom stake by 11.4%, selling 3.17 million shares in the second quarter, but still held 24.59 million shares worth approximately $1.81 billion. Institutional investors collectively own 91.97% of OMC.
• Omnicom reported quarterly revenue of $6.56 billion, up 63.4% year over year and above expectations, while earnings per share of $2.65 slightly missed estimates. The company declared a quarterly dividend of $0.80 per share, representing a 4.2% yield.
• OMC shares opened at $75.32, below the analyst consensus price target of $99.00. Analysts maintain a consensus “Hold” rating, while insider ownership remains low at 1.20% and a company director recently sold shares.

State Street Corp reduced its stake in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) by 11.4% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 24,590,402 shares of the business services provider's stock after selling 3,169,816 shares during the period. State Street Corp owned 8.96% of Omnicom Group worth $1,812,367,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in Omnicom Group during the second quarter valued at approximately $2,082,476,000. Bank of New York Mellon Corp bought a new stake in shares of Omnicom Group during the 2nd quarter valued at $914,156,000. Geode Capital Management LLC raised its position in shares of Omnicom Group by 57.1% during the 4th quarter. Geode Capital Management LLC now owns 8,578,075 shares of the business services provider's stock valued at $690,327,000 after purchasing an additional 3,117,188 shares during the period. First Eagle Investment Management LLC lifted its stake in shares of Omnicom Group by 0.5% during the 2nd quarter. First Eagle Investment Management LLC now owns 7,343,209 shares of the business services provider's stock valued at $534,806,000 after buying an additional 40,096 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in shares of Omnicom Group by 89.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 6,106,022 shares of the business services provider's stock valued at $493,061,000 after buying an additional 2,883,520 shares in the last quarter. 91.97% of the stock is currently owned by institutional investors.

Insider Activity

In other news, Director Linda Rice sold 1,385 shares of the company's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $88.73, for a total transaction of $122,891.05. Following the sale, the director directly owned 11,719 shares in the company, valued at approximately $1,039,826.87. This represents a 10.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 1.20% of the company's stock.

Omnicom Group Stock Down 0.4%

NYSE OMC opened at $75.32 on Wednesday. The stock has a 50 day moving average price of $82.85 and a 200-day moving average price of $78.57. Omnicom Group Inc. has a one year low of $66.33 and a one year high of $89.57. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.78 and a current ratio of 0.92. The company has a market capitalization of $20.66 billion, a P/E ratio of 64.93, a P/E/G ratio of 0.64 and a beta of 0.65.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The business services provider reported $2.65 earnings per share for the quarter, missing the consensus estimate of $2.67 by ($0.02). Omnicom Group had a return on equity of 24.73% and a net margin of 1.74%.The business had revenue of $6.56 billion during the quarter, compared to the consensus estimate of $6.44 billion. During the same quarter in the prior year, the firm posted $2.05 EPS. The company's revenue for the quarter was up 63.4% on a year-over-year basis. As a group, equities analysts predict that Omnicom Group Inc. will post 10.5 EPS for the current fiscal year.

Omnicom Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Friday, September 18th will be given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Friday, September 18th. Omnicom Group's dividend payout ratio is currently 275.86%.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on OMC. The Goldman Sachs Group started coverage on Omnicom Group in a research note on Wednesday, June 3rd. They issued a "buy" rating and a $146.00 price target for the company. Wells Fargo & Company boosted their price objective on Omnicom Group from $91.00 to $93.00 and gave the company an "overweight" rating in a research report on Thursday, July 30th. Rothschild & Co Redburn assumed coverage on Omnicom Group in a research note on Thursday, May 28th. They issued a "neutral" rating and a $89.00 price objective for the company. Argus upgraded Omnicom Group to a "hold" rating in a research report on Monday, September 14th. Finally, Zacks Research downgraded Omnicom Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, July 30th. Four investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Omnicom Group presently has a consensus rating of "Hold" and a consensus target price of $99.00.

Omnicom Group Company Profile

Omnicom Group Inc NYSE: OMC is a global marketing and communications holding company. Through a network of agencies and specialized businesses, it provides advertising, branding, media planning and buying, public relations, customer relationship management, digital marketing, experiential marketing and healthcare communications services.

Omnicom's agency brands have included BBDO Worldwide, DDB Worldwide, TBWA\Worldwide, Omnicom Media Group, FleishmanHillard and Ketchum. These businesses serve clients across industries, including consumer products, healthcare, technology, financial services, automotive and telecommunications, helping organizations develop brand strategies, create campaigns and engage audiences through traditional and digital channels.

Omnicom was formed in 1986 through the merger of advertising companies BBDO, Doyle Dane Bernbach and Needham Harper Worldwide.

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